IBJNews

Credit counselor to merge with Ohio-based network

Back to TopCommentsE-mailPrintBookmark and Share

Indianapolis-based Momentive Consumer Credit Counseling Service Inc. has agreed to be absorbed by Ohio-based Apprisen Financial Advocates, as financial pressures in the industry push not-for-profit agencies to become larger.

Momentive’s two-person management team, including President Kathryn Perron, will remain with Apprisen and might take on responsibilities for a larger geographic area. At the same time, Perron expects Apprisen to add to its 20-person counseling staff by opening offices in Lafayette, Terre Haute and possibly southern Indiana.

“It’s primarily just so we can combine our forces,” Perron said of the merger, “to be able to add more staff but then have support for our staff as well.”

Perron said Apprisen has resources to enhance its online services and to secure grant funding, which has become a larger source of support for not-for-profit counseling agencies over the past two decades. Such agencies provide mostly free financial counseling to indebted consumers and help them set up repayment plans that buy time with angry creditors.

But creditors have paid less and less to the agencies for their services. When Perron joined the industry 20 years ago, she said, creditors would give the agencies a 15 percent cut of consumer’s payments. Now, she said, it’s about 4 percent.

Creditor fees make up only about one-third of Momentive’s $2 million annual budget. And many creditors now refer their customers only to national counseling agencies, such as Apprisen, bypassing local agencies like Momentive.

Because of these trends, Momentive had been running deficits in recent years, according to its federal tax filings, and had to reduce some of the community-based financial education it offered for free.

“Because of funding reductions overall in the non-profit industry, we’ve had to cut back,” Perron said.

But she said those cutbacks should be reversed under the new relationships with Apprisen, which she praised for sharing the same philosophy as Momentive.

Michael Kappas, Apprisen’s CEO, agreed. In a statement, he said, “We plan to combine our more than 55 years of credit counseling experience to work with Momentive to assist greater numbers of families and individuals throughout Indiana.”

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. "This was a very localized, Indiana issue," he said. As in, Indiana failed to expand Medicaid to cover its poor citizens resulting in the loss of essential medical services, including this EMS company. Well done, Indiana GOP. Here are the real death panels: GOP state governments who refuse to expand Medicaid for political reasons.

  2. In the "one for all, all for none" socialist doctrine the sick die...this plus obama"care" equates to caucasian genocide plus pushed flight to cities thus further eroding the conservative base and the continualed spiral toward complete liberal/progressive/marxist America.

  3. There is a simple reason why WISH is not reporting on this story. LIN has others stations in different markets that are affiliated with CBS. Reporting about CBS blindsiding WISH/LIN due to CBS's greed and bullying tatics would risk any future negoations LIN will have with CBS in other markets.

  4. My best always! Dave Wilson

  5. How did Columbus, Ohio pull off a car share service without a single dollar of public subsidies? They must not have a mayor who is on the take like Indianapolis. Daimler Benz offers Columbus residents their Smart Cars on a market-driven basis: "This has some neat features. Cars don’t have to be picked up and dropped off at fixed points. You find one with your smart phone based on GPS, and drop it off anywhere in the service area you can find a spot – even at a meter. These cars aren’t required to feed the meter so you get free on street parking while using them. I was told this system was put in place on a market basis without subsidies – and that the vendor actually pays the city for the use of the meters." http://www.urbanophile.com/2014/05/26/checking-in-on-columbus/

ADVERTISEMENT