FrequentlyAsked Questions
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Why BCS and not the other
guys?
How do I get started?
What services do you provide?
How does the Debt Management Plan work?
What are your fees?
How long will it take to complete my Debt Management Plan?
Are creditors required to work with BCS
and will they stop calling?
How do I make my payments?
Can I pay more than the required deposit?
What happens if I miss a BCS payment?
Can my creditors take legal action against me while Im enrolled in the DMP?
How can I be sure my creditors are being paid?
Can I pick and choose which accounts to include?
What if I decide to withdraw from the DMP?
Can BCS fix or clean up my credit
report?
Does working with BCS hurt my credit
report?
Why BCS and not the other guys?
BCS is one of the region's oldest, largest and most respected non-profit debt management agencies. We've been serving this community for over 20 years.
BCS is affiliated with the National Foundation for Credit Counselors (www.nfcc.org), an agency that oversees the certification of counselors and requires member agencies to adhere to strict procedural policies. The Council on Accreditation (COA) also independently accredits BCS. These relationships help to ensure that you receive only the highest quality service from our agency.
Additionally, we provide our clients with the ability to meet with or talk to a LOCAL counselor, even if the client initially enrolled over the Internet or through the mail. We are actively involved in the community that we serve and because we live here too, we have a vested interest in the betterment of the South Texas communities we serve.
Further, our fees are among the lowest in the industry and we are recognized by nearly every major creditor.
How do I get started?
Call, write or come in today for a free, no obligation consultation! Talking over your situation with one of our certified counselors is an excellent way to begin your debt management pursuit. Our counselors are prepared to assist you in developing a sound financial plan that is a good fit for you and your family. To ensure the highest level of service, please have the following information available: knowledge of your income (you may bring your pay stubs if you choose) and monthly household expenses and the most recent complete statements for your unsecured accounts.
What services do you provide?
BCS offers:
Free and Confidential Budget Counseling
Foreclosure Prevention Counseling
Housing Counseling
Identity Theft Counseling
Reverse Mortgage Counseling
Student Loan Repayment Counseling
How does the Debt Management Plan work?
Through the Debt Management Plan (DMP), BCS works as a neutral third party to negotiate payment arrangements with your creditors. Credit grantors may be willing to reduce finance charges, stop fees and bring accounts current and often lower payments in exchange for an agreed monthly payment. The required payment is based on your balance and is determined by your creditors. Once enrolled on our program, you will make one monthly payment (also called a deposit) to BCS. BCS will then disburse this payment to your creditors. You should continue to receive regular monthly statements from all creditors included on the plan. You will also receive a quarterly statement from BCS. It is important that you review both statements to ensure that they are in agreement. Of course, you are encouraged to contact your counselor with any concerns.
What are your fees?
Our fee schedule is as follows:
| Budget and Debt Counseling Session | NO CHARGE |
| Foreclosure Prevention Counseling Session | NO CHARGE |
| Initial Identity Theft Counseling Session | NO CHARGE |
| Reverse Mortgage Counseling Session | $125.00 |
| Initial Student Loan Repayment Counseling Session | NO CHARGE |
| Follow-Up Student Loan Counseling Session |
$70.00 (one-time fee) |
| *Bankruptcy Fees Per Household Filing: | |
| Pre-Filing Counseling Session-online | $50.00 |
| Pre-Filing Counseling Session-in person/telephone | $55.00 |
| Pre-Discharge Education Course-online | $50.00 |
| Pre-Discharge Education Workshop-classroom | $40.00 |
| Debt Management Plan Start-Up Fee | $20.00 |
| Monthly Account Maintenance Fee | $25.00 (for active Debt Management Plan only) |
| Credit Report Review |
$30.00 Individual; $35.00 couple |
*We provide free bankruptcy counseling and education to consumers who are receiving free legal services from their attorney or are receiving Social Security Disability income payments. If you believe you qualify for free services under one of these categories, please notify our agency for instructions on how to provide proof of your qualifications.
The bankruptcy counseling and education charges is per household, which covers up to two people.
If you have additional questions regarding our fees or services, please call or send us an email.
How long will it take to complete a Debt Management Plan?
Debt Management Plan repayment time may vary between 36 and 60 months. Repayment time is based on how much you owe, what interest rates you are offered and the minimum payments creditors will accept. You will be provided with an estimated repayment time prior to enrolling on the Debt Management Plan.
Missing payments through our program may result in a longer than expected repayment time. Therefore, it is important that you make all payments on time and discuss any concerns with your counselor.
Are creditors required to work with BCS and will they stop calling?
The Debt Management Plan is a voluntary program that your creditors offer because of the mutual benefit of the program. Creditors benefit by recovering money that they may have lost to bankruptcy or non payment, and clients benefit from reduced payments, lower interest rates, reduction or elimination of fees and a shorter repayment period.
Creditors are not required by law to participate. However, most major creditors are willing to participate in the Debt Management Plan. This is why we have been able to serve the South Central Texas area with these programs for over 20 years!
Creditors may continue calling for up to 90 days after you make your first payment. After this time, most creditors do stop calling. In the rare case that a creditor is still calling after this time, please let your counselor know. The counselor may be able to call the creditor or provide you with additional information in order to help get the calls stopped.
How do I make my payments?
While you are enrolled on our program, all payments must be made directly to BCS. BCS will then disburse these payments to your creditors.
Monthly payments to BCS can be made in a variety of ways.
Pay by mail (no cash, please)
Pay by phone ($1.00 fee)
Pay by allotment (military only)
Pay in person (E. Huntland Drive office only) (no cash,
please)
Automatic Payment Plan (ACH) **
** We strongly encourage our clients to consider using our automatic payment program. Through this program, your bank sends us your payment on a given date each month. There is no charge for this payment option and you may also divide your payment to allow more convenience. This payment option ensures that your payment is always on time and sent to your creditors in a timely manner. It also allows you to avoid the hassle of remembering to send the payment each month.
Can I pay more than the required deposit?
Absolutely! We are as happy as you are if you have extra money to pay towards your debts. Making extra payments will reduce the length of time required to repay your debts. To pay extra on your account, you may use any of the payment methods BCS offers. (Please refer to: How do I make my payments?)
Keep in mind that the Debt Management Plan requires that ALL PAYMENTS BE MADE
THROUGH BCS. This helps to ensure accurate
records and avoid potential discrepancies in information. Please do not send
payments to your creditors directly as this may also terminate your DMP.
What happens if I miss a BCS payment?
It is very important that you make on-time payments every month through the DMP. Some creditors will discontinue your Debt Management Program when a payment is missed which will result in higher fees and interest rates. If you are struggling to make the monthly payments, please contact your counselor to discuss your particular situation and possible solutions. We'll do our best to help you every step of the way!
Please keep in mind that paying extra on an account in one month does not reduce the required payment the next month. Full payments must be made every month in order to ensure continued concessions from your creditors.
Can my creditors take legal action against me while I'm enrolled in the DMP?
The Debt Management Program is a voluntary agreement between BCS, your creditors and yourself. Creditors do not waive their right to legal action by accepting the Debt Management Program. However, most creditors prefer to recover their money through the Debt Management Plan and avoid costly legal proceedings.
If you have questions regarding your particular accounts, please call your counselor. For more information regarding your rights as a debtor in Texas, you may wish to visit the Attorney Generals Office Consumer Protection Division website at www.oag.state.tx.us.
How can I be sure my creditors are being paid?
BCS issues quarterly statements for all clients enrolled on a Debt Management Plan. The statement lists all included accounts, the amount paid to each creditor for the previous month, and an ESTIMATED balance rounded to the nearest $100.00.
The balance information reflected on your BCS statement is an ESTIMATE ONLY. You should continue to receive and review monthly statements from each of your creditors.
If you are not receiving statements from your creditors, it is important that you contact them and request that they send you regular monthly statements. This is the best way for you to ensure that you are receiving the proper concessions and that your monthly payments are being credited to your account.
Additionally, we recommend that you send your creditor statements for review every 6-9 months. This allows your counselor to conduct an account review to ensure that you are receiving the best possible benefits.
Can I pick and choose which accounts to include?
The Debt Management Plan is designed to assist you in getting out of debt. Therefore, one of the agreements you make with BCS and with your creditors is that you will not incur additional debt while enrolled on the Debt Management Plan. As a general rule, all unsecured accounts should be included on the plan.
Under some circumstances, exceptions to this rule are possible. You may discuss your individual situation in more detail with your counselor.
What if I decide to withdraw from the DMP?
The DMP is a voluntary program and you may withdraw at any time. In order to withdraw, you should provide us with a written request to terminate services. When the request is received, we will notify your creditors that you have opted to discontinue your enrollment. Please keep in mind, that late fees, over-limit fees and higher interest rates may resume on the accounts you are removing.
If you are considering withdrawing from the program due to difficulties with your budget, please consider reviewing your case with your counselor prior to exiting the program. We may be able to help generate alternative solutions to your financial situation.
Can BCS fix or clean up my credit report?
Creditors must report accurate information to the credit bureaus. Therefore, if the information on your report is accurate, it cannot be removed from your report.
If you have questions about improving your credit standing, consider scheduling a Credit Review Session with one of our Certified Consumer Credit Counselors. During this one-hour personalized session, your counselor will review your report and offer suggestions regarding actions that you can take to improve your credit situation.
BCS recommends that you complete an investigation on any credit repair agency you are considering using before giving them any money. Visit the Better Business Bureaus web site at www.bbb.org. You may also contact the Attorney General's Office, www.oag.state.tx.us to determine if any complaints have been filed against the company.
Does working with BCS hurt my credit report?
Enrolling on a DMP does not have a direct impact on your credit score. Research has determined that individuals who are enrolled on a Debt Management Plan are no more likely to miss payments than someone who is not enrolled on a Debt Management Plan. However, the DMP cannot change what is already on your credit report, if your accounts are past due or fall past due when you initially enroll with us your credit score may be affected.
Generally, you will need to make on-time payments for at least 12-24 months after enrolling in the DMP to establish a payment history of on-time payments. BCS can provide Debt Management Plan participants with their payment history and other supporting documentation that may assist them with making major purchases.
Additionally, paying off debt on the Debt Management Plan will improve your credit report. With the reduced interest and no more late or over the limit charges adding to the balance, more of your payment will be applied to your balance. This will eventually reduce your debt and improve your debt to income ratio and increase your credit rating.
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