ACCC Training Manual



AMERICAN CONSUMER CREDIT COUNSELING 2023 New Hire OrientationTable of Contents Financial Climate in America2Company Overview4Debt Management Program6ACCC Debt Management Specifics9Departmental Overview10Quality Assurance13Financial Climate in America TOC "Financial Climate in America" Credit Card StatisticsAs of 2022Average credit card debt:?$7,279Average mortgage debt:?$236,443Average student loan debt:?$37,787Average auto loan debt: $34,384In total, American consumers owe:Source: Federal Reserve Bank of New York$16.9 trillion in household debt$841 Billion in credit card debt$11.92 trillion in mortgages$1.76 trillion?in student loansBankruptcy, Defaults, and ForeclosuresThere were 387,721 personal bankruptcies in 2021The national mortgage delinquency rate (over 90 days past due) was 3% as of 2022 Credit Reports Free – anytime if:You are denied credit, insurance, or a job, based on your credit fileYou are on Welfare, or unemployed and looking for workYour report is inaccurate due to fraudYou may order your free annual credit report online at , by calling (877) 322-8228, or by completing the Annual Credit Report Request Form and mailing it to: Annual Credit Report Request Service PO Box 105283Atlanta, GA 30348-52833 Credit BureausBy law, each of the nationwide consumer reporting companies must provide to you, at your request, a free credit report once every 12 monthsEquifaxEquifax Information Services, LLCP.O Box 740241Atlanta, GA 30374(800) 685-1111TDD (800) 255-0056equifax.omExperianExperianP.O Box 2002 Allen, TX 75013(888) EXPERIAN or (888) 397-3742TDD (800) 972-0322TransUnionTransUnion2 Baldwin PlaceP.O Box 2000Chester, PA 19022(800) 916-8800Deaf/Hearing impaired (877) 5537803ACCC Company Overview TOC "ACCC Company Overview" HistoryFounded in 1991, American Consumer Credit Counseling (ACCC) is a non-profit 501(c) (3) organization offering confidential financial counseling, educational services and debt management. Additionally, ACCC is offering HUD housing counseling, student loan counseling, and bankruptcy counseling. All counseling and education services are offered to consumers nationwide. As one of the nation’s leading providers of financial counseling, ACCC works with consumers to help them reduce their debt and regain financial stability. ACCC is funded, partially, through voluntary fair share contributions and grants from participating creditors.ACCC is NFCC and COA certified, both requiring that stringent operational guidelines be met. Annual independent audits are required to maintain our certification. Our Quality Policy mandates that we strive for continuous improvement in all aspects of our business. ViSIONACCC strives to develop a greater community of financially responsible individuals and families that will thrive for generations to come. Through collaboration with community partners and financial institutions, ACCC is dedicated to providing unsurpassed financial education and services to those who need it most.MissionWe strive to empower our clients to regain control over the quality of their lives through financial education, counseling, and debt management.ServicesEducation is the key ingredient to successfully regaining control of one’s personal finances. Each year, ACCC works with thousands of consumers to identify their specific needs, so that we can tailor our services to meet those needs. We offer confidential counseling sessions, covering issues such as budgeting,?bankruptcy,?debt management, housing, student loans, and the proper use of credit.?ACCC provides substantial educational resources for consumers who want to improve their overall financial literacy. From our extensive website to our community workshops, ACCC is dedicated to educating consumers and giving them the tools they need to succeed and live a financially healthy life.EDUCATIONFREE PRODUCTS AND SERVICESACCC offers the following products and services, at no cost:In-Depth Counseling Session – A certified credit counselor will review the root cause of financial stress; work with the consumer to create a livable household budget; explore options for relieving financial stress; introduce free educational resources on personal financial management; introduce the Debt Management Program, if appropriate; and provide referrals to social services, housing, and/or bankruptcy if necessary. Erasing Debt E-newsletter – A monthly free e-newsletter consisting of various financial articles, tools and tips. Access to the ACCC Website – ACCC’s website hosts an enormous amount of financial resources made available to individuals looking for more information on personal money management. The following information is available, free-of-charge, and are available on our website under the Financial Education section.free Community servicesCommunity Workshops and Webinars – ACCC has an internal team that facilitates various workshops and webinars.? The team consists of certified credit counselors who have lengthy experience providing community presentations, individual coaching, and personal financial counseling.? All workshops and counseling sessions are provided to the community free of charge.? ACCC works with colleges, high schools, banks, redevelopment agencies, Employee Assistance Programs, prisons, halfway house shelters, housing authorities, and many other community organizations.? ACCC has developed and utilizes a series of workshops focusing on the essential elements of money management, including such topics as Budgeting, Understanding and Managing Credit, Identify Theft and Fraud, Debt Management, increasing your Net worth, Making SMART Goals, Planning for Large Purchases, College Finances, and the Basics of Banking.? These workshops and webinars provide consumers with the essential tools for strong financial health.Debt Management Program EDUCATIONAL ResourcesParticipants in the ACCC Debt Management Program are offered the following:Financial Education Package This is a self-directed educational program that covers a complete guide to Financial Peace of Mind – A step by step guide to taking control of your life and your money. The material is designed to assist the consumer with an ongoing education program, over a 60-month period. Every consumer who joins the Debt Management Program receives this certification program free-of-charge.Debt Management Program TOC "Section 3 – Debt Management Program" ACCC’s Debt Management Program (DMP) is a confidential program, individually designed to provide consumers with a unique solution for their financial situation. Professionally trained and independently certified counselors evaluate a consumer’s financial situation, assist in creating a budget and spending plan, and establish repayment plans with creditors.ACCC understands that not everyone who contacts us meets the criteria for placement on a Debt Management Program; many people need only to develop their budgeting skills. Our counselors stress that a Debt Management Program may not always be the best option; in fact, we enroll less than 24% of consumers who call thinking that debt management is their last resort.For some consumers, a Debt Management Program is the best way to manage their debt. ACCC uses strict criteria in which the consumer must demonstrate that their debt is currently unmanageable. Consumers will not be turned away for not having enough debt or an inability to pay fees; ACCC will work with consumers no matter what their situation. Our criteria are as follows:Every consumer must participate in a cost of living/budgeting session: ACCC offers free consultations to everyone regardless of their interest in our debt management program. As a result, counselors obtain a better understanding of the types of issues that a consumer may be facing, and consumers get educated on their spending habits. The counseling session includes an in-depth discussion and evaluation of the client’s situation. We encourage our clients to talk about their problems in detail and counselors are trained to listen for the red flags, which could indicate looming financial crises.The overall counseling strategy entails knowing the client in as much detail as possible. The counselor must understand the client’s current and long-term situation, the environmental contingencies facing the client, and the resources that are available to the client, in order to provide appropriate options. Counselors will generate possible goals and solutions with the client in order to explore viable alternatives to relieve financial stress. Clients must have a workable budget: Counselors review with the client the importance of having a budget. A budget helps the counselor determine how much money is available to cover unsecured debt and can be used to help a client better allocate their spending dollars moving forward. A client’s budget must show that they are able to afford the restructured payment plan offered by their creditors, which will get the client out of debt in a reasonable amount of time (approximately five years).Many people can get back on track by adhering to a budget and making simple lifestyle changes. Others may have to increase income with a part-time job, renting a room in their home, refinancing, liquidating available assets, etc.Consumers must have a reason for seeking our services: Every consumer must have a sufficient reason for seeking our services. Our counselors are trained to distinguish those that truly need a Debt Management Program, due to either current or impending financial hardship. Consumers must include all unsecured debt into our program: Our Debt Management Program is designed to educate the consumer and help them regain control of their financial lives. Consumers are encouraged to include all eligible unsecured debt in the program, so that they are not getting into further debt while trying to pay off existing debt. We will allow the consumer to maintain one credit card outside of the program, to be used for emergency circumstances. Consumers must give us authorization to pull a copy of their credit report: ACCC reserves the right to pull a credit report on the consumer who is seeking debt management assistance. This ensures that we receive accurate information with regards to a consumer’s creditors and financial situation and helps to avoid common problems that arise from inaccurate creditor information, at the start of the program.Counselors are available Monday-Thursday, 9:00 a.m. to 11:30 p.m.; Friday, 9:00 a.m. to 8:00 p.m.; Saturday, 10:00 a.m. to 6:00 p.m. ET.Why Debt Management?If appropriate, ACCC assists consumers with unsecured debt by reducing the overall monthly payment and helping them save on interest and fees. ACCC will help clients establish a monthly household budget. Often times, their credit rating will improve because creditors are being paid in a timely fashion.Debt consolidation plans, offered by credit counselors, do not involve taking out a new loan. Most unsecured creditors have arrangements with credit counseling firms. Once the credit-counseling firm advises a creditor that you are signed up for a debt management program, the creditor will, in most cases, reduce interest rates, and stop late and over-the-limit charges. Also, the account may be re-aged to show the account as current and payments up-to-date. One of the reasons that creditors are willing to do this is simple – they know that by seeking credit counseling, you are taking responsible action to pay your existing debt and attempting to avoid filing bankruptcy.Debt Management Savings ExampleCompany Beginning BalanceOn your own repayment amountACCC repayment amountSavingsOn your own repayment time ACCC repayment time Citibank$2,000.00$11,960.82$2,523.79$9,437.0337 years5 yearsDirect Merchant$2,356.00$4,446.65$2,657.01$1,789.6415 years4.2 yearsBank One $1,900.00$4,990.73$2,521.34$2,469.3917 years5.5 yearsProvidian$1,800.00$4,642.75$2,178.89$2,463.8616 years5 yearsChase $2,200.00$10,338.75$2,590.72$7,748.0331 years4.9 yearsTotal$10,256.00$36,379.7$12,471.75$23,907.9523 years4.9 yearsApproximate Debt Repayment TimeOn your own: 23 yearsACCC’s plan: 4.9 yearsBy using our plan you will save over $23,000 in payments and pay the debt off 18 years sooner.Note: All figures are “estimates” and based on an “average” client. Each client’s individual savings will vary. All “on your own payments” are based upon the creditor’s minimum amount due and their most common APR.ACCC Debt Management SpecificsACCC’s Debt Management Program is designed to promote financial control and assist clients with managing, and eliminating, debt. An ACCC Debt Management Program will help clients:Consolidate unsecured debtLower monthly payments by as much as 20% to 50%*Lower interest*Stop late and over-limit fees, and re-age past due accounts*Avoid collections, wage garnishments, or legal action*Avoid bankruptcy*Prevent creditor phone calls and letters*Regain financial stability*Situations varyACCC Handles Unsecured AccountsCredit cardsDepartment retail accountsPersonal loans without collateral Medical billsUnsecured accounts with collection agenciesSome Utility accounts with an outside collection agencyRepossessed auto loans (remaining balance) only if with a collection agencyACCC Does Not HandleMortgage/ home equity loansAuto loansPersonal loans with collateralIRS paymentsLegal accountsPhone/cell phone billsPay day loansUtility accounts at in-house collection departmentsPast due rent paymentsInsurance paymentsACCC Departmental Overview TOC "ACCC Departmental Overview" CC-Counseling CenterThe Counseling Department provides education and financial counseling to clients that are having financial difficulties. Counselors help clients explore all possible solutions to solve their financial problems including debt management. ?The counseling department’s goal is to take an overall look at every client’s financial picture and help them determine the best route to gain control of their current situation. ?BANKRUPTCY In 2005 when the Bankruptcy laws changed, a credit counseling session became a requirement before a person could file for bankruptcy, and a Debtor Education course became required before the debt could be discharged. These 2 courses and completion certificates are offered by the Bankruptcy department. ACCC received approval from the US Department of Justice to provide this service. It should be noted that this group doesn’t help a consumer decide to file bankruptcy (that is done with their bankruptcy attorney). This department is contacted after the decision to file has been made.Student LoansACCC added a student loan department back in June 2015 in response to over 70% of student loan borrowers struggling with their student loan payments. Student loan counselors are NFCC certified and assist clients with both their Federal and Private student loans. They look into all possible options educating the client along the way all while trying to find the best option for the client. The department offers additional services for clients who would like further assistance. The client can get a detailed step by step action plan or they can request that ACCC assist in the preparation of their paperwork.CS-Client ServicesThe Client Service Department strives to assist and educate all of ACCC's clients who have questions or concerns regarding credit counseling. Clients enrolled in the Debt Management Program are assigned to an individual representative, who is responsible for monitoring outstanding proposals. Client Service Representatives address client questions via phone, chat and email, ensure debt management proposals are sent on behalf of our clients, and verify that accounts are correctly and effectively set up on the Debt Management Program. ReCounselingThe Recounseling Department is part of Client Services and is responsible for assisting clients who encounter further financial difficulties that may require additional counseling and budget assistance to maintain their status in the program.DI-DisbursementsThe Disbursement department works on various tasks throughout the month. The most important task is entering client payments via check, money order, western union, or electronic funds transfer (EFT). After collecting money from clients, they disburse the payments to the different creditors. CP-Compliance DepartmentThe Compliance Department makes sure that ACCC complies with all state and federal laws. They obtain and maintain state licenses and registrations are required and review state regulations along with internal and external procedures to ensure state compliance. ED-Education & DevelopmentThe two key areas that fall within Education & Development include the Marketing Department and Community Outreach Department. The Marketing Department acts as a service group, by supporting all internal and external functions that encompass the strategic objectives of ACCC.? The department is responsible for all marketing related activities that include advertising, public relations, direct marketing, marketing materials including educational, events, branding, website development and all social media activities. The Community Outreach Department provides financial education workshops throughout the New England area. The team consists of highly trained financial counselors providing everything from group workshops to one-on-one counseling. Our financial workshops are offered free of charge to participants, including all materials. Additionally, the department is responsible for all client and community education programs including the development, administration and distribution of Financial Peace of Mind Financial Literacy Program.HOUSING ACCC's Housing Counseling Department has been HUD approved since 2010 and is an adopter of the National Industry Standards of Homeownership Education and Counseling. The Housing Counseling Department offers mortgage delinquency/foreclosure prevention to Massachusetts residents only and reverse mortgage (or HECM) counseling nationally. The housing department also offers pre-purchase counseling and First Time Home Buyer workshops.? ACCC is approved by MassHousing and is approved by Citizens’ Housing and Planning Association (CHAPA). IT- Information TechnologyIT oversees the network availability as well as security for all servers and PCs including software updates, anti-virus software, researching and resolving vulnerabilities and basic software and hardware repairs. FI-Finance DepartmentThe Finance Department manages the organization’s financial planning, budgeting and accounting practices.? They manage all the monetary transactions within the organization as well as financial reporting.? The Finance Department also handles all the statistical reporting and analysis of the organization’s different departments.HR-Human ResourcesThe Human Resource Department maintains balance and equality amongst all employees and serves as a foundational web of relationships between staff and management. The Human Resources Representative serves in an advisory capacity to management with regard to staffing, job development, progressive discipline, HR trending, and legal compliance.OS-Office SupportOffice Support is responsible for all reception duties, as well as taking care of client paperwork which includes receiving, filing, and delivering to the correct department. Office Support also keeps all common areas of the office neat, clean, and stocked, and ordered supplies as needed. They follow up with clients who have not submitted paperwork or have had their enrollment fee rejected, distribute incoming mail and make sure all outgoing mail looks professional and has the proper postage. Finally, they support the entire office and help all departments as needed.QA-Quality Assurance The QA department ensures that ACCC provides the highest level of quality service to consumers by maintaining COA certification, adhering to the NFCC Code of Practice, monitoring operations to verify policies are being followed, and maintaining a documentation system for all policies. QUALITY ASSURANCE TOC "QUALITY AWARENESS" Quality AssuranceWhat is Quality Assurance?Delivering the best possible service in a consistent manner to all clientsQuality ServiceHow can we ensure we are delivering the best possible service?Commitment from every level of the organization, from top management to frontline employeesIdentifying best practices through adherence to industry standardsHow Are We Certified?Certification by COA StandardsThe Council on Accreditation created a set of guidelines to help organizations improve their performance, regardless of the industry, products, or services.Certification by NFCC StandardsThe National Foundation for Credit Counseling (NFCC) developed guidelines, specifically designed for the credit counseling industry, to ensure its members meet certain standards relating to quality of service, fees charged to consumers, and business relationships. Proof of AdherenceExternal AuditsAn independent third party audits our operations and documentation to ensure that we are following all standards.Upon successful completion of these audits, we receive certification for both COA standards and NFCC Code of Practice.Audits continue annually.Internal AuditsACCC performs internal audits throughout the year to identify opportunities for improvement in preparation for the external audits.Quality ObjectivesQuality Objectives are established at relevant functions and levels within the organization and are measurable and consistent with the Quality Policy.Department Quality Objectives: Top Management sets measurable goals for each department.Everyone affects whether or not we meet our Quality Objectives.The more we strive to do our best to deliver the services we offer and to continually improve, the more we will reach and exceed our quality objectives.What ACCC measures and why:Educational Materials- The more materials we can get in the hands of consumers, the better educated they will be.Counseling Session Satisfaction- When consumers are willing to recommend us to a friend, we know we are providing good service.Phone Abandon Rates- The fewer calls we abandon, the better service we are offering.Chat Abandon Rates- The fewer chats we abandon, the better service we are offering.Phone Monitoring Scores- A high score means we are delivering quality service during phone calls with correct information and professional delivery.DMP Client Satisfaction-When clients are willing to recommend us to a friend, we know we are providing good service.What Does Quality Awareness Mean To YOU and YOUR Job?Each and every employee has an effect on customer satisfactionBy following ACCC policies and procedures, we can deliver consistent quality service to our clientsBy sharing information, we can identify potential problems and fix them before they impact the customerBy learning from our mistakes, we become better qualified employeesBy finding better ways to do things, each employee contributes to “continuous improvement” of the service ACCC offers to its clients ................
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