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  • how long does it take for proposals to be finalized.
  • Welcome to the program and thanks for posting to the community. 

    You may want to read our blog on what to expect during the first month on the plan.  We want to make sure you understand the process and it starts with a proposal. 

    A proposal is an agreement that we send to your creditors requesting that they extend benefits to you such as a lower interest rate, waived over the limit and late fees, and ending collection calls. Each creditor may offer a different benefit.  Some creditors may not participate at all. When a creditor accepts a proposal they agree to extend these types of benefits to you. Therefore, when you send a payment and the creditor hasn’t accepted the proposal, we still send them the payment. The creditor continues to accept the payment from CareOne, as your payment is handled separately from the proposal. However, until your proposal is accepted by the creditor you are not eligible to receive special benefits from the creditor that customers on a debt management plan typically benefit from. A proposal is sent to your creditors within 4 to 7 days of your first payment to meet certain creditor requirements such as receiving a payment within 15 days. There are four different proposal statuses.

    Pending: We have sent a proposal to your creditor on your behalf. Although we have not yet heard back from your creditor, we will still send them the proposed monthly payment outlined in your repayment schedule.

    Scheduled: We are in the process of sending a proposal to your creditor on your behalf. Until they respond to the proposal, we will continue to send them the proposed monthly payment outlined in your repayment schedule. 

    Accepted: The proposal has been accepted and the benefits issued by your creditor are being granted. You will be able to see this reflected on your monthly creditor statements

    Declined: The proposal has been received, reviewed and rejected by the creditor. You will be notified by CareOne when a proposal has been declined and what the next step needs to be.

    Example:  If we make the payments before the due date and you have an accepted proposal on file by that date, you will not have to pay the creditors directly.  If the proposals are still in a pending status we "suggest" that you pay the difference only (if you can afford it).  For example a due date with a creditor is 12/29/09 for 100.00. We debit your account on 12/21/09 for 50.00 and disburse your funds on 12/28/09. You creditor post your payment on 12/30/09 (if proposal still pending) you still would need to pay the creditor the difference 50.00.  

    If you cannot afford it, we understand, but you may receive a late fee from your creditor and it may show up on your credit report. As soon as we have an accepted proposal on file, you will no longer have to make any outside payments. It may take up to 3 consecutive payments on the Plan for creditors to accept your proposal and start issuing benefits.  

    Typically, you are still responsible for any creditor payments currently due, prior to your first debit.  Once a debit takes place on regular business days the payment does not get issued until approximately 3 business days. If your debit date ever occurs on a Saturday, Sunday or Holiday, it will be debited the next business day. Once a debit takes place the payment does not get issued until approximately 3 business days. This also varies depending on which service provider you are with. For example, CareOne is the 3rd business day, CESI is the 4th business day and AFS may be the 8th calendar day.  

    Some creditors are set up to receive electronic payments which means they will receive it up to 5 days after it is issued. Other creditors are not set up that way and need to wait for a check to physically arrive. For this reason it is a good idea to contact your creditors and reschedule their due dates, in order to ensure that your payments will always arrive on time and to avoid being dropped from the Debt Management Plan.


     Coach Tammy

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