Debt Management Program Adverse Action

[MMart078]

Does entering a Debt Management Plan on one account cause other creditors to take adverse action?

I am referring to other creditors closing accounts, lowering credit limits etc.

[Booner72]

OPT OUT

[Anonymous]

YMMV however I found in the past if I worked with one creditor or collection agency, the rest would all seem to bombard me with phone calls.  I always thought this was a conspiracy, and in a way it really is!!  As Booner 72 stated, opting out helps to prevent this. 

[MMart078]

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@Booner72 wrote:

OPT OUT

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When yo usay opt out what do you mean?

[Booner72]

OPT OUT prevents collection agencies from seeing your credit reports.  Go online and google "OPT OUT." You can do this for free and it lasts 5 years - if you want to permanently opt out you have to do that in writing.  You will need to make sure you OPT OUT with all three credit bureaus.

[MMart078]

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@Booner72 wrote:

OPT OUT prevents collection agencies from seeing your credit reports.  Go online and google "OPT OUT." You can do this for free and it lasts 5 years - if you want to permanently opt out you have to do that in writing.  You will need to make sure you OPT OUT with all three credit bureaus.

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But this will not stop adverse action (CLD's, closures etc.) from other creditors though will it?

[Anonymous]

Yes, there is a good possibility that all you other accounts will be closed.  I entered a program about five years ago and there was one card I did not agree to place on the program and it was closed. Also be careful with the company you are using, make sure it’s one with a good track record.  The common problem with some of these companies is you pay them but they don’t pay your creditors.

The company I use was a non-profit and all they asked for was a monthly donation, which I did not have to pay if I did not want to. Looking back at that time in my life it was the best decision, now that is behind me and I no longer have any CC debt.

[Shogun]

Killed my credit by going into one.  No, it mutilated it.  Once I went on it, everyone closed my accounts, had charge offs, accounts sent to CA's.  It was an absolute nightmare.  But as they say.  YMMV

[MMart078]

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@Shogun wrote:

Killed my credit by going into one.  No, it mutilated it.  Once I went on it, everyone closed my accounts, had charge offs, accounts sent to CA's.  It was an absolute nightmare.  But as they say.  YMMV

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What agency did you use?

[Booner72]

I used consumer credit counseling when I was about 20.  When i was about 28 I was applying for a mortgage and was told that the lender sees credit counseling "like a bankruptcy."

My advice is, if you have no choice do it, but if you have a choice, don't do it.