Choosing a Credit Counseling Agency
Friday, Aug 5th, 2005

NATIONAL FOUNDATION FOR CREDIT COUNSELING TIP SHEET
WHAT CONSUMERS SHOULD KNOW BEFORE CHOOSING A CREDIT COUNSELING AGENCY

The National Foundation for Credit Counseling, Inc. (NFCC), advises consumers to exercise caution when seeking debt relief. To that end, NFCC has prepared the following list that consumers should ask credit counseling or debt management organizations before signing up for financial service assistance. It is important that consumers understand and ask questions of all agencies before making a choice for services.
(For attribution to the National Foundation for Credit Counseling.)

Quality Assurance/Credibility
• Are they nonprofit? Are they consumer-focused or are they driven by their financial bottom line at the expense of consumers?
• How are they funded?
• Is the agency accredited by a reputable third-party organization? Does the organization certify the agencies’ services are quality and in the consumers’ best interest?
• Are their counselors certified or trained in basic money management services? Or are they telemarketers whose goal is to sign consumers up for a debt payment plan?
• Are they affiliated with a national organization like NFCC to help assure they maintain quality standards and good customer service?
• How long has the company been in business? What’s their track-record of client success?
• Have complaints been filed about the agency with the local Better Business Bureau or State Attorney General’s office?

Fund Management and Safety
• How are client funds collected and disbursed to creditors?
• What policies are in place to assure protection of client funds?
• Do they retain any client payments or portions of clients’ payments for their company?

Service Delivery
• What fees do the agencies charge or request?
• Do they fully disclose their fees and services up-front?
• Will they work with all my creditors, regardless of whether they are financially supporting the agency?
• Is counseling offered by telephone and in person? Does the consumer have a choice?
• Does the agency provide financial management and budget counseling in addition to debt management services? Does the consumer have a choice of services?
• If Debt Management Plans (DMP) are offered, how long will it take to pay off the plan?
• After enrolling in a DMP, are customer service representatives available to help clients?
• How will working with the agency impact customers’ credit?

For more information, call or write to the National Foundation for Credit Counseling, 801 Roeder Road, Suite 900, Silver Spring, MD 20910; phone, (301) 589-5600.
In Thew Mobile area, call CCCS (251)602-0011.