Cambridge Credit, a nationwide provider of credit counseling, educational assistance and budget planning services, announced that it is making changes to its organization to bring new benefits to consumers nationwide who struggle with ever-increasing debt loads. The restructuring will strengthen Cambridge Credit’s ability to carry out its core educational and charitable mission.
“Although Cambridge Credit and its affiliated companies have acted in accordance with all applicable state and federal laws, we realize the need to evolve in order to address the increasing financial needs of our clients and consumers nationwide,” said Chris Viale, acting President and CEO of Cambridge Credit Counseling Corp. “We look forward to working closely with state and federal regulators and the Congress to ensure that these changes achieve our goal of delivering added benefits to consumers and strengthen our position as a best practices organization within the credit counseling industry.”
Added Mr. Viale, “As an industry leader, we are constantly re-evaluating our services and have been examining various ways to improve our organization for some time. Most importantly, we will continue to provide consumers with the most professional educational guidance and credit counseling services that they have come to expect from Cambridge Credit.”
Plans for Cambridge Credit’s organizational changes focus on three main areas: fee levels and structure, executive compensation and governance, and the relationship between non-profit and for-profit entities.
Cambridge Credit’s new fee structure, which it is calling the “75/50” plan, will consist of an initial fee of $75, followed by a monthly maximum maintenance fee of $50, for each customer. To ensure that Cambridge Credit can meet the needs of every consumer burdened by debt, it will also institute a sliding fee scale. This will enable Cambridge Credit to service consumers who may have difficulty paying the monthly maintenance fee. In addition, if a client cancels his or her participation with Cambridge Credit for any reason within the first 90 days of enrollment, Cambridge will refund the client’s initial fee of $75. All consumers who call Cambridge Credit and speak with a counselor, whether or not they enroll, will also receive a free educational video series and booklet on personal finance tools that can help minimize debt.
Cambridge Credit will enhance the independence of its board of directors with four additional outside directors, who will help to ensure that the organization pursues activities and functions within its 501(c)(3) status and mission. Also under the new board will be the establishment of a Compensation Committee, which will set and review compensation levels of all officers and senior executives at Cambridge Credit and its affiliates, using an established Executive Compensation Review Policy.
Taking over as acting President and CEO of Cambridge Credit is Chris Viale, formerly the organization’s Chief Operating Officer.
In addition, Cambridge Credit will reorganize its relationships with its for-profit affiliates (Debt Relief Clearinghouse, Ltd., Brighton Credit Management Corp., Brighton Debt Management Services, Ltd., Cypress Advertising and Promotions, Inc. and the Cambridge Consumer Credit Index), which will become wholly owned subsidiaries of the non-profit organization. As a result, transactions between Cambridge Credit and its for-profit subsidiaries will occur at fair market value and any earnings of the for-profits will be captured by Cambridge Credit, acting as holding company for the benefit of its customers.
About Cambridge Credit Counseling Corp.
Cambridge Credit Counseling Corp., a 501 (C) (3) Not-for-Profit organization, provides credit counseling, educational assistance and budget planning services to clients throughout the United States. Since its incorporation in 1996, Cambridge Credit has provided free educational assistance and counsel to over 1.8 million consumers and has enrolled approximately 200,000 consumers into its credit counseling program. Cambridge Credit is ISO 9001 registered which is accepted worldwide. For more information about Cambridge Credit, visit