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What You Need To Know
Find answers to GFM's Debt Management Program (DMP) & Credit Counseling questions.
GFM has compiled a list of the most frequently asked questions regarding credit counseling, debt management, and everything related. Read on for the questions and answers from our financial experts.
Debt Management And Credit Counseling Frequently Asked Questions:
How will my creditors know I have joined GFM's DMP?
Why are my creditors still charging finance charges?
Do I need to continue sending payments to my creditors after I have signed up with GFM?
How long does my payment through GFM take to post on my creditor account?
I just received a statement and I don't see my most recent payment.
Do I need to cancel credit card insurance?
Can I change my payment date?
Will I receive a monthly statement?
How do I payoff a creditor?
How do I increase my Debt Management Program payment or make an extra program payment?
Why aren't my balances decreasing?
How do I reach you now that I am client?
How can I payoff my entire program? Should I do this through GFM?
I have negative information on my credit report - Can you remove it?
My creditor said my account was charged off. Does this mean I no longer have to pay the debt?
What is a judgment?
I have built up some equity in my home - should I use it to pay off my creditors?
How will my creditors know I have joined GFM's DMP?
GFM will notify your listed creditors that you have joined the GFM Debt Management Program upon receipt of your first payment. This notification, called a “Proposal”, includes the account number and open balance you provided at the time of set up, as well as the GFM payment indicated on your repayment schedule.
In most cases, proposals are accepted. When no changes are necessary, creditors may or may not formerly respond to us. However, on occasion, a creditor may decline a proposal based on an invalid account number, an incorrect open balance or creditor information among others. If this occurs, you will be notified to contact us regarding any requested changes to your account, including a possible payment increase.
During the initial phase of your debt management and credit counseling program, it is not unusual to continue receiving calls from creditors. If you are receiving collection calls, the collection agent may not be aware of a proposal from our program until the benefits are granted. If the creditor calls to inform you that they have not received a proposal, please advise the creditor to call our Client Services Center at 1.800.460.8641.
Why are my creditors still charging finance charges?
Most creditors will reduce or even stop their finance charges and/or other fees for clients on a debt management program. GFM will work with your creditors to get your interest and fees reduced whenever possible. How much the creditors are willing to reduce interest rates or fees is up to each individual company. Many creditors will continue to charge you a reduced interest rate in order to generate revenue to cover their expenses.
Do I need to continue sending payments to my creditors after I have signed up with GFM?
Yes. You will need to continue making payments until each creditor posts the first payment through the program. In addition, until your creditor has accepted your new debt management program (DMP) payment in writing, either by letter or reflecting that amount as your minimum due on your statement, you may need to pay the difference in order to eliminate the possibility of the creditor noting your account as 30 days late. This will not mean that you will need to pay more than your normal minimum due, only that you may need to maintain the current payment until they have accepted the new, lower DMP payment.
For example, let's assume you have just enrolled in our DMP program and your typical minimum due for Creditor A is $100, but on the DMP program, it will only be $80. Until Creditor A has notified you that they will accept $80 as your full monthly payment, you may need to have GFM make your $80 payment through the program and make an additional payment of $20, to cover the full $100 that Creditor A expects to receive that month.
This eliminates ANY chance that Creditor A could reflect you as past due because of a partial payment during the time period that they are processing your paperwork. While most major creditors process DMP program payments in a very timely fashion, and typically reflect your DMP payment within 30 days of enrolling, some may wait to see if you make 2 and even 3 consistent payments through the program before offering you the full benefits.
If you cannot afford to make the additional payments, and you are worried you will incur a 30 day late mark when joining the program, stop and consider this – if your financial situation is that tight now, what is not joining the program going to cost you in the future? You could be setting yourself up for far more damaging, and costly, delinquencies in the future if you do not regain control of your debt now. You may face late fees, over-the-limit fees, and increased interest rates making your debt that much more difficult to manage.
A bright note is that many creditors provide for account re-aging – where your account will be brought to a current status - after three consecutive Debt Management Program payments. Any payments made after a re-aging would be considered on time and help build your credit profile over the course of your program.
How long does my payment through GFM take to post on my creditor account?
Typically, your creditor will post your payment made through the GFM Debt Management Program within 8-15 days from your debit date.
I just received a statement and I don't see my most recent payment.
Be sure to check your statement closing date. This is the date your statement was printed and mailed to you. If your program payment was received after the statement closing date you will see your payment on next month's statement or you may call your creditor to verify when the payment was posted.
Do I need to cancel credit card insurance?
Yes. Most creditors will not provide you benefits while your account has a recurring charge, like credit insurance, being billed. Also, charges for credit insurance may hamper your ability to make progress on paying off your debt. Although you cannot maintain credit insurance with your creditors while on the Debt Management Program, you can receive assistance with your payments should you become unemployed when you utilize the Member Benefits Service offered by GFM. If you are not already enrolled in this valuable program please contact us at 1.800.460.8641 for information on how to enroll.
Can I change my payment date?
Creditors expect to receive a payment every 30 days. Changing your debit date can adversely affect your payment cycle and any benefits granted by creditors and should only be considered in the most critical situations. If you anticipate having difficulty making a scheduled program payment, please contact the Client Services Center at 1.800.460.8641 at least 3 to 5 business days prior to your program payment for assistance.
Will I receive a monthly statement?
You will receive a monthly statement from GFM showing the disbursement of payments to your creditors. You should also continue to receive statements from your creditors. If you are not receiving statements from your creditors, please contact them to request a statement. Since GFM does not receive copies of your creditor statements it's important that you compare your creditor and GFM statements each month. Please contact the GFM Client Services Center at 1.800.460.8641 promptly with any discrepancies.
How do I payoff a creditor?
When you are ready to payoff a creditor, simply contact the GFM Client Services Center at 1.800.460.8641. We will request a payoff balance from your creditor(s) and contact you to make immediate payment arrangements. It is to your advantage to make all creditor payments, including the final one, through the GFM Debt Management Program. Not doing so can result in loss of key benefits from some creditors.
How do I increase my Debt Management Program payment or make an extra program payment?
You are encouraged to increase your payment(s) whenever possible as this simply reduces the amount of time needed to pay off your balances. You can choose to increase your payment by as little or as much as you wish. You can also choose to the increase to be effective for one month or for all future payments.
Why aren't my balances decreasing?
It can sometimes seem like balances are decreasing slowly or not at all - especially for the first year of the program. Most clients find that by the third, fourth or fifth year on the plan their total balance has decreased significantly from their program starting balance. We recommend comparing your starting creditor balance(s) to your current balance(s) to see if your balances have decreased. You may want to check your creditor statements for high interest rates, late fees, credit insurance or other things that may be hampering your payment progress. Please contact the Client Services Center right away if, at any time, you feel that you are not receiving your full program benefits.
How do I reach you now that I am client?
You can reach us by phone, fax, mail or online. The fastest and easiest way to reach us is by sending us a message from your account online. You can access and make changes to your account by returning to this web site and logging into your account online from the top right hand corner of the home page. You will use your Client ID # as the User ID and your password is the last 4 digits of your social security number. You can also reach us by calling the GFM Client Services Center at 1.800.460.8641.
How can I payoff my entire program? Should I do this through GFM?
It is to your advantage to make all creditor payments, including the final one, through the GFM Debt Management Program. Not doing so can result in loss of key benefits from some creditors. Simply contact the GFM Client Services Center at 1.800.460.8641. We will request a payoff balance from your creditor(s) and contact you to make immediate payment arrangements.
I have negative information on my credit report - Can you remove it?
A credit report presents an accurate picture of your credit history to others. Accurate information – even if negative – will remain on your report at least 7 years. Positive information may remain on your report indefinitely. GMF would be unable to remove any information from your report. However, you can request to have inaccurate negative information removed by contacting the credit bureaus. Be wary of companies that claim they can repair damage to your credit instantaneously – as very few of these companies are able to provide what they claim. A better credit profile is gained over time through a good payment history on the program.
My creditor said my account was charged off. Does this mean I no longer have to pay the debt?
When an account is charged off, it is considered to be a debt which the original creditor has not been able to collect on. You are still legally responsible for the debt even after it becomes charged off. Creditors have different timeframes within which they will charge off an account, typically between 90-180 days of delinquency. In some cases, collection efforts will increase with a charge off and you may begin receiving calls from a professional debt collection agency. Charged off debts do negatively impact your credit profile however the effect can be minimized by paying off the debt.
What is a judgment?
A judgment is a decision issued by the court at the end of a lawsuit. If you are sued and either do not file the appropriate papers or eventually lose the case, the person initiating the lawsuit may be awarded a judgment again you. This means that the person who has sued you now has the legal right to collect what is owed in other manners such as wage garnishments or liens (attachments to collateral).
I have built up some equity in my home - should I use it to pay off my creditors?
There are some positive things about a home equity loan however, be sure you consider the full picture before committing. For starters, consider the fact that when you take out a home equity loan, you are putting up your most valued possession (your home) as security for a debt that was originally unsecured. You have taken out a loan against your house and turned your unsecured debt into secured debt. Then, if you miss what was formerly your credit card payment, you have now skipped a mortgage payment, and you could risk losing your home.
Remember, we are here to help - at GFM, our Debt Management and Credit Counseling goal is your financial peace of mind!
