There is a BIG difference in a non-profit and a 'not for profit'. A non-profit means that they still recover fees, but they are generally used to support the expenses of the office (salaries, rent, expense-accounts, travel, etc.), but they don't 'plan' on making a profit. A 'not for profit' is exactly that, they do not make a profit and are usually staffed with volunteers and their other expenses are usually courtesy of contributors.
However, you need to realize that there is no way that ANY business or operation can exist without some income from some source. Where did you think that the credit service was getting their money? Credit service companies operate on one or all of several methods:
1) They negotiate a lower payment plan with your creditors, total them together and add a little for themselves. Then give you a 'total payment' amount.
2) Another way they make money is to negotiate a payment plan with the creditors. In turn the creditors pay them a percentage of the money recovered, just like a 'collection agency'.
3) Finally, some of them also charge an upfront fee (application, loan consolidation, etc.) and pocket those moneys.
As JenniferH suggested, you need to CLOSELY and CAREFULLY read the agreement that you signed. Then, if you feel that you were mislead or not treated per the agreement, you need to write them with your concerns (send Certified, RRR).
In fact, here is an excerpt from Bud Hibbs webpage (a GREAT source of information about 'collection agents"
"In a recent brochure sent out upon request, Consumer Credit Counseling Service (CCCS), the largest debt collection agency in America, states the following: "Turn
to a friend. Consider us your friend. A friend is someone you can trust. A friend will speak up for you. A friend can teach you what they know. A friend helps you in more ways then one. A friend can even help you move into a new home. A
friend speaks your language. A friend will meet you in person. A friend lives and works nearby. A friend isn't in it for the money. A friend cares about you."
What CCCS fails to mention is the fact that a friend like they are, gets paid a fat 12-15% kickback for collecting and disbursing your monthly payments and will keep you off the credit market for ten years or more. This friend will provide debt collection services to your creditors. Although CCCS provides limited counseling to debtors, its primary role is as a DEBT COLLECTOR. CCCS is NOT your friend, unless you classify a friend as someone who uses you to make money in the form of a kickback from others, at your expense. Your don't need friends like CCCS!"
Click on
http://www.budhibbs.com to see the entire page.
[Edited by Halket on 12-27-2000 at 07:10 PM]