As more Americans seek help for serious debt problems, a new generation of credit counseling companies are exploiting their customers’ vulnerabilities and leaving them deeper in financial trouble. Despite their promises of “debt relief,” these new agencies often harm debtors with bad advice, deceptive practices, and excessive fees. Some “non-profit” credit counseling agencies are performing like profit-making enterprises, reaping high revenues and paying their executives exorbitant salaries.
NCLC Special Reports and Press Releases
Comments of the National Association of Consumer Bankruptcy Attorneys and the National Consumer Law Center Regarding the United States Trustee’s Notice of Proposed Rulemaking on Application Procedures for Approval of Providers of a Personal Financial Management Instructional Course, January 13, 2009 PDF (39KB)
Report: New Burdens but Few Benefits - An Examination of the Bankruptcy Counseling and Education Requirements in Massachusetts, June 2007 PDF (454KB)
Comments of CFA and NCLC re proposed Interim Final Rule on Application Procedures and Criteria for Approval of Nonprofit Budget and Credit Counseling Agencies and Approval of Providers of a Personal Financial Management Instructional Course by United States Trustees, September 5, 2006 PDF (120KB)
Comments: on Uniform State Laws (NCCUSL) Uniform Debt Management Services Act, March 2006 PDF (34KB)
and NCLC