Creditors, Customers and Momentive™

Most customers sincerely want to repay their obligations; however many have gotten behind because of overspending, loss of income, marital problems or medical expenses that they are left with few alternatives to keep their heads above water and maintain their self-respect. Some customers become convinced that bankruptcy is the only way out of debt.

Bankruptcy is indeed a way out-out of buying a house, appliance or car, renting an apartment, obtaining a credit card-out of establishing a good credit history for seven and possibly as long as ten years.

When a customer is forced into bankruptcy, you, the creditor, may get nothing. At best, you may receive only a small percentage of the debt owed. In bankruptcy, no one wins.

Everyone gains when customers and creditors work with Momentive™ Consumer Credit Counseling Service®,a non-profit community service agency.

Momentive™ Consumer Credit Counseling Service® provides a Debt Management Plan which enables financially troubled customers to repay their obligations and satisfy the creditors and collection agencies closing in on them.

Participation in the Debt Management Plan requires that the customer complete an information sheet and make an appointment with a counselor. Momentive™ will then work with you, the creditor, to reach an acceptable repayment plan resulting in debt reduction over an extended time.

The Momentive™ client makes a deposit covering all agreed-upon accounts to Momentive™ each month. Checks to creditors are normally sent on the 23rd of the month. A nominal voluntary monthly contribution is requested of the client.

When you work with Momentive™, you are assured of receiving a portion of the client's monthly payment until the debt is paid in full. Furthermore, you can check on the status of your customer's account at any time. We encourage creditors to stop late fees and interest charges when they know their customers are on the Debt Management Plan.

When you encourage customers to use the services of Momentive™, you will find:

• Expenses and losses due to bankruptcy are reduced.
• The reputation of your business or collection agency is enhanced. You retain your customers' goodwill.
• Debts are repaid in an orderly manner. Accounts handled by Momentive™ require less follow-up action.
• Momentive™ monitors the status of each account to ensure that payments are being made.
• An account is normally returned to the creditor if two consecutive payments are missed.
• Momentive™ counselors and staff are certified, trained and bonded. They adhere to the Code of Ethics of the National Foundation for Credit Counseling.

You can cooperate with Momentive™ in the effort to serve your company and help financially distressed customers by:

• Identifying those customers who seem to be having serous financial difficulties and then referring them to Momentive™ - or providing a Momentive™ Debt Management Plan brochure with their statement.
• Accepting the proposed repayment amount and the extended time for repayment for your customers on the Debt Management Plan.
• Designating one person to handle Momentive™ accounts.
• Reducing or stopping interest, penalties, or late fees for your customers on the Debt Management Plan.

Call the Creditor Coordinator at 266-1300 if you have questions about the way in which the Debt Management Plan works - and the way in which Momentive™ can work with you.

Consumer Credit Counseling Service® of Central Indiana

Momentive™ Consumer Credit Counseling Service® is one of about 200 private non-profit consumer debt and credit counseling offices with about 1900 offices in the United States, Puerto Rico and Canada. It was established in 1965 and has as one of its services the arrangement of debt repayment through the Debt Management Plan.

Momentive™ acts as the mediator between the debtor and the creditors in its Debt Management Plan. The success of the program is made possible by cooperation of creditors who support non-profit consumer credit counseling services as a matter of company policy. Most major credit-granting organizations participate in the Debt Management Plan.

Most of our funding comes from voluntary contributions from creditors who participate in Debt Management Plan ('DMP'). Since creditors have a financial interest in getting paid, most are willing to make a contribution to help fund out agency. These contributions are usually calculated as a percentage of repayments you make through your DMP - up to fifteen percent (15%) of each payment received. However, your accounts with your creditors will be credited with one hundred percent (100%) of the amount the clients pay through Momentive™ and Momentive™ will work with all creditors regardless of whether they contribute to our agency.

Momentive™ is not a charitable organization, a lending institution or a collection agency.

Momentive™ also provides Employee Assistance Programs as well as consumer education programs to schools and community groups and provides individual and family money management counseling for potential homeowners.

Counseling Sites:

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