Credit counseling agencies have come under fire in recent years. The good news is, all the attention has resulted in a significant response from state governments in requiring and enforcing licenses.
November 17, 2006 (Press Release) --
CORAL SPRINGS, FLA. -- For good reason, credit counseling agencies have come under fire in recent years. Whether for using unfair pricing practices, outright fraud, or closing up shop in the middle of the night to leave customers holding the bag, the industry has certainly drawn attention to itself. The good news is, all the attention has resulted in a significant response from state governments in requiring and enforcing licenses.
"We are a tremendously regulated industry now," says Alan Silverberg, President of American Debt Counseling, Inc., of Coral Springs, Fla. "My first piece of advice to consumers would be to check the licenses of any credit counselor or debt management plan they are considering. That simple step eliminates an enormous amount of risk."
Consider that almost all states have their own regulating agency. So, if a credit counseling company wants to do business throughout the United States, they likely have to comply with 50 agencies or so.
"That pretty much scares away the fly-by-nighters," Silverberg said.
Having a license means the company has met the minimum legal requirements to do business in that state. But the "minimum" can mean a lot. Having a license can ensure compliance with the following:
• All the state's consumer protections and banking laws.
• State-mandated regulation of set-up fees.
• State-mandated requirements that the company use a client agreement and abide by a maximum length of time in a debt management program, and
• That the company complies with all the necessary financial reporting to the state each year.
Having a license also gives the consumer an easy opportunity to verify that the company is telling the truth about at least one item.
"While the industry has seen more than its share of chicanery in the past few years, it's now added up to a very safe, controlled environment for the consumer." Silverberg said. "Especially if they ask to see the company's credentials."
American Debt Counseling, based in Coral Springs, Fla., provides confidential and professional credit counseling, debt management, and financial education programs. American Debt Counseling is licensed in the state of Florida, Alabama, Connecticut, Idaho, Iowa, Maryland, Mississippi, New York, Texas, Wisconsin, and the commonwealth of Puerto Rico. And more are being added each month. ADC (www.AmericanDebtCounseling.org) is a 501(c)(3) non-profit credit counseling organization.
"We are a tremendously regulated industry now," says Alan Silverberg, President of American Debt Counseling, Inc., of Coral Springs, Fla. "My first piece of advice to consumers would be to check the licenses of any credit counselor or debt management plan they are considering. That simple step eliminates an enormous amount of risk."
Consider that almost all states have their own regulating agency. So, if a credit counseling company wants to do business throughout the United States, they likely have to comply with 50 agencies or so.
"That pretty much scares away the fly-by-nighters," Silverberg said.
Having a license means the company has met the minimum legal requirements to do business in that state. But the "minimum" can mean a lot. Having a license can ensure compliance with the following:
• All the state's consumer protections and banking laws.
• State-mandated regulation of set-up fees.
• State-mandated requirements that the company use a client agreement and abide by a maximum length of time in a debt management program, and
• That the company complies with all the necessary financial reporting to the state each year.
Having a license also gives the consumer an easy opportunity to verify that the company is telling the truth about at least one item.
"While the industry has seen more than its share of chicanery in the past few years, it's now added up to a very safe, controlled environment for the consumer." Silverberg said. "Especially if they ask to see the company's credentials."
American Debt Counseling, based in Coral Springs, Fla., provides confidential and professional credit counseling, debt management, and financial education programs. American Debt Counseling is licensed in the state of Florida, Alabama, Connecticut, Idaho, Iowa, Maryland, Mississippi, New York, Texas, Wisconsin, and the commonwealth of Puerto Rico. And more are being added each month. ADC (www.AmericanDebtCounseling.org) is a 501(c)(3) non-profit credit counseling organization.
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