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Debt Consolidation in Delaware
(Note: this is for educational purposes only, and although efforts have been made to keep this up to date and correct, there are no guarantees about the accuracy of anything contained below. It should not be construed as legal advice. For legal advice, please consult with an attorney licensed in Delaware.)
Delaware, although small in scope, is still the home of many consumers who seek out the services of consumer credit counseling and debt consolidation. While many are turning to debt management options for help, very few understand what alternative is best for their situation or what to look for in a reputable service provider.
There are two types of debt consolidation available to consumers who are overwhelmed with credit card debt and other unsecured bills.
The first is known as credit counseling. These services are usually offered by non profits, who can work with you to assess your budget and spending. If your situation permits, a credit counselor may suggest enrolling you in a debt management plan. This sort of program aims at getting interest rate concessions from your creditors, which in turn can lead to a lower overall monthly payment and a faster path to debt freedom. Programs usually last between four and six years, and although they are typically administered by a not for profit agency, they do charge fees, which are fortunately limited by Delaware law.
The second type of debt management is debt negotiation, or as it is widely known, debt settlement. This form of debt help involves negotiating with creditors to get them to accept a lump sum of less than the full balance to completely satisfy a debt. Since the balance paid may be less than the balance that is owed, it is typically least expensive and time consuming way to pay off credit card debt than any option except bankruptcy. In order to get a creditor to accept a settlement, however, the consumer must default on their payments and save money monthly in a savings account set up by the company. Once adequate funds have been saved, the company will contact and offer a settlement with your creditor. Until then, however, your credit cards will be considered past due, which will most likely hurt your credit score, lead to creditor calls and in some cases, litigation.
Want to get matched for free debt advice? Submit a form now!
Delaware Debt Management Laws
Delaware was a pioneer in legislating the Uniform Debt Management Services Act (UDMSA). This set of laws formally differentiates debt settlement and credit counseling and requires licensing for all companies that receive compensation from either a creditor or a consumer in administering a debt plan. It also sets limits on the fees that debt consolidation firms can charge.
Fees
-$100 for counseling, education, or the like (a larger fee may be approved by the attorney general if the education warrants such)
-if a consumer chooses to enroll in a debt management service within 90 days of the educational counseling, then the company must return this fee
Debt Settlement
-Aggregate fees cannot exceed 18% of the total principal amount of debt (Note: “principal amount of debt” is defined as the balance at the time of an agreement, not the balance at the time of settlement)
-In the event the client wants to terminate his or her agreement, company must refund 65% of the fees collected proportionate to the amount of debt unsettled
Credit Counseling
-the fee limit for set up, consultation, obtaining a credit report, and the like is $50
-the limit for monthly service fees is the lesser of $10 times the number of creditors in the plan or $50
For more information on these provisions, follow these links:
Consumer Protection
Delaware Code
Licensed Debt Management Agencies
The following organizations are licensed to provide debt management services in Delaware.
American Consumer Credit Counseling, Inc.
130 Rumford Avenue
Suite 202
Newton, MA 02466-1316
Expires: 01/30/2009
American Financial Solutions
2815 2nd Avenue
Suite 280
Seattle, WA 98121
Expires: 04/10/2008
Cambridge Credit Counsel Corporation
67 Hunt Street
Agawam, MA 01001
Expires: 08/13/2008
CareOne Services, Inc.
8930 Stanford Blvd.
Columbia, MD 21045
Expires: 07/12/2008
Clearpoint Financial Solutions
8000 Franklin Farms Dr.
Richmond, VA 23229
Expires: 03/30/2008
Consolidated Credit Counseling Services, Inc.
5701 W. Sunrise Blvd.
Suite 200
Ft. Lauderdale, Fl 33313
Expires: 01/18/2009
Consumer Alliance Processing Corporation
5937 Darwin Court Suite 109
Carlsbad, CA 9208
Expires: 07/02/2008
Consumer Credit Counseling Service of Greater Atlanta, Inc.
100 Edgewood Avenue Suite 1800
Atlanta, GA 30303
Expires: 01/25/2009
Consumer Credit Counseling Service of Maryland & Delaware
757 Frederick Road
Baltimore, Maryland 21228-4503
Expires: 01/19/2009
Consumer Credit Counseling of San Francisco
595 Market Street
15th Floor
San Francisco, CA 94105
Expires: 01/19/2009
Consumer Education Services, Inc.
3801 Lake Boone Trail Suite 400
Raleigh, NC 27607
Expires: 02/08/2009
Credit Guard of America
791 Park of Commerce Blvd. #500
Boca Raton, FL 33487
Expires: 03/13/2009
Garden State Consumer Credit Counseling, Inc. d/b/a NovaDebt
225 Willowbrook Road
Freehold, NJ 07728
Expires: 02/20/2009
GreenPath, Inc.
38505 Country Club Drive
Suite 210
Farmington Hills, MI 48331
Expires: 01/19/2009
InCharge Debt Solutions
2101 Park Center Dr. Suite 320
Orlando, Florida 32835
Expires: 05/07/2008
Money Management International, Inc.
9009 West Loop South Suite 700
Houston, TX 77096-1719
Expires: 01/25/2009
Take Charge America
20620 North 19th Avenue
Phoenix, AZ 85027-3585
Expires: 01/19/2009
Having Problems
Have you experienced problems with a debt consolidations service, but cannot resolve it with them? If so, contact the Consumer Protection Unit of the Delaware Department of Justice at (302) 577-8600 or email debt.management@state.de.us. Other Resources
Filing Bankruptcy in Delaware
Bankruptcy Laws in Delaware
Debt Collection in Delaware
Delaware, although small in scope, is still the home of many consumers who seek out the services of consumer credit counseling and debt consolidation. While many are turning to debt management options for help, very few understand what alternative is best for their situation or what to look for in a reputable service provider.
There are two types of debt consolidation available to consumers who are overwhelmed with credit card debt and other unsecured bills.
The first is known as credit counseling. These services are usually offered by non profits, who can work with you to assess your budget and spending. If your situation permits, a credit counselor may suggest enrolling you in a debt management plan. This sort of program aims at getting interest rate concessions from your creditors, which in turn can lead to a lower overall monthly payment and a faster path to debt freedom. Programs usually last between four and six years, and although they are typically administered by a not for profit agency, they do charge fees, which are fortunately limited by Delaware law.
The second type of debt management is debt negotiation, or as it is widely known, debt settlement. This form of debt help involves negotiating with creditors to get them to accept a lump sum of less than the full balance to completely satisfy a debt. Since the balance paid may be less than the balance that is owed, it is typically least expensive and time consuming way to pay off credit card debt than any option except bankruptcy. In order to get a creditor to accept a settlement, however, the consumer must default on their payments and save money monthly in a savings account set up by the company. Once adequate funds have been saved, the company will contact and offer a settlement with your creditor. Until then, however, your credit cards will be considered past due, which will most likely hurt your credit score, lead to creditor calls and in some cases, litigation.
Want to get matched for free debt advice? Submit a form now!
Delaware Debt Management Laws
Delaware was a pioneer in legislating the Uniform Debt Management Services Act (UDMSA). This set of laws formally differentiates debt settlement and credit counseling and requires licensing for all companies that receive compensation from either a creditor or a consumer in administering a debt plan. It also sets limits on the fees that debt consolidation firms can charge.
Fees
-$100 for counseling, education, or the like (a larger fee may be approved by the attorney general if the education warrants such)
-if a consumer chooses to enroll in a debt management service within 90 days of the educational counseling, then the company must return this fee
Debt Settlement
-Aggregate fees cannot exceed 18% of the total principal amount of debt (Note: “principal amount of debt” is defined as the balance at the time of an agreement, not the balance at the time of settlement)
-In the event the client wants to terminate his or her agreement, company must refund 65% of the fees collected proportionate to the amount of debt unsettled
Credit Counseling
-the fee limit for set up, consultation, obtaining a credit report, and the like is $50
-the limit for monthly service fees is the lesser of $10 times the number of creditors in the plan or $50
For more information on these provisions, follow these links:
Consumer Protection
Delaware Code
Licensed Debt Management Agencies
The following organizations are licensed to provide debt management services in Delaware.
American Consumer Credit Counseling, Inc.
130 Rumford Avenue
Suite 202
Newton, MA 02466-1316
Expires: 01/30/2009
American Financial Solutions
2815 2nd Avenue
Suite 280
Seattle, WA 98121
Expires: 04/10/2008
Cambridge Credit Counsel Corporation
67 Hunt Street
Agawam, MA 01001
Expires: 08/13/2008
CareOne Services, Inc.
8930 Stanford Blvd.
Columbia, MD 21045
Expires: 07/12/2008
Clearpoint Financial Solutions
8000 Franklin Farms Dr.
Richmond, VA 23229
Expires: 03/30/2008
Consolidated Credit Counseling Services, Inc.
5701 W. Sunrise Blvd.
Suite 200
Ft. Lauderdale, Fl 33313
Expires: 01/18/2009
Consumer Alliance Processing Corporation
5937 Darwin Court Suite 109
Carlsbad, CA 9208
Expires: 07/02/2008
Consumer Credit Counseling Service of Greater Atlanta, Inc.
100 Edgewood Avenue Suite 1800
Atlanta, GA 30303
Expires: 01/25/2009
Consumer Credit Counseling Service of Maryland & Delaware
757 Frederick Road
Baltimore, Maryland 21228-4503
Expires: 01/19/2009
Consumer Credit Counseling of San Francisco
595 Market Street
15th Floor
San Francisco, CA 94105
Expires: 01/19/2009
Consumer Education Services, Inc.
3801 Lake Boone Trail Suite 400
Raleigh, NC 27607
Expires: 02/08/2009
Credit Guard of America
791 Park of Commerce Blvd. #500
Boca Raton, FL 33487
Expires: 03/13/2009
Garden State Consumer Credit Counseling, Inc. d/b/a NovaDebt
225 Willowbrook Road
Freehold, NJ 07728
Expires: 02/20/2009
GreenPath, Inc.
38505 Country Club Drive
Suite 210
Farmington Hills, MI 48331
Expires: 01/19/2009
InCharge Debt Solutions
2101 Park Center Dr. Suite 320
Orlando, Florida 32835
Expires: 05/07/2008
Money Management International, Inc.
9009 West Loop South Suite 700
Houston, TX 77096-1719
Expires: 01/25/2009
Take Charge America
20620 North 19th Avenue
Phoenix, AZ 85027-3585
Expires: 01/19/2009
Having Problems
Have you experienced problems with a debt consolidations service, but cannot resolve it with them? If so, contact the Consumer Protection Unit of the Delaware Department of Justice at (302) 577-8600 or email debt.management@state.de.us. Other Resources
Filing Bankruptcy in Delaware
Bankruptcy Laws in Delaware
Debt Collection in Delaware