CU vet takes helm of Consumer Credit Counseling Services

Joe Stokes joined the staff of CCCS April 16 and succeeded Mike Cherry as president and CEO after Cherry retired May 1. Stokes joined CU as an internal auditor and was key accounts manager – serving the utility’s largest customers – when he retired from CU after 32 years. A graduate of Missouri State University with degrees in accounting and management, he also is a certified public accountant.

Stokes said he was drawn to the CCCS post by a desire to work more directly with people in the nonprofit sector.

“I certainly believe City Utilities does help people, but it’s somewhat indirectly,” Stokes said. “I wanted a position where we directly help families.”

Founded locally in 1969, CCCS is one of more than 1,400 U.S. entities that comprise the National Foundation for Credit Counseling.

CCCS works with consumers to develop budgets and manage their debts, often working with creditors to work out payment plans, sometimes with lowered interest rates or minimum amounts due.

“What we’re finding is that people have just borrowed so much money, either medical debts or credit cards, that they’ve exposed themselves to such large minimum payments that they can’t make them all, and therefore, they start falling behind,” Stokes said.

He said it usually takes two to five years for the debts to be repaid, but once that happens, the creditors will pay CCCS a fair share – usually 5 percent – for its efforts to get the debt repaid. “That’s kind of what we live off of – the fair shares,” Stokes said. 

As president and CEO, Stokes said his role is to lead day-to-day operations and community outreach, spreading the word about CCCS.

“We kind of live off referrals from creditors, bankers and prior clients,” Stokes said. “A large part of my job is just to get the word out that we’re still here, and we’re still doing this work.”

Stokes noted the program only works if consumers have the ability to make a long-term commitment to paying off the debt. Amid current economic conditions, however, he said for many families, the organization’s work doesn’t reach the debt management phase.

“So many families are coming in today that don’t have steady income, and they can’t make these long-term commitments, so a lot of the work we’re doing now stops at the budgeting stage,” Stokes said.

CCCS has four offices – two in Springfield and one each in Joplin and West Plains. In 2011, the organization provided counseling, education and debt management for more than 15,000 households. Year-to-date through May, the organization has helped 3,428 families this year, said Operations Director Lisa Frazier.