Choosing a Credit Counseling Agency

Consumers wanting to know if an agency is a 501(c)(3) nonprofit organization recognized by the IRS can go to http://apps.irs.gov/app/pub78 for assistance.
The Federal Trade Commission has information on how to choose a reliable credit counseling agency and tips on avoiding entities that lure in consumers with misleading advertisements that promise quick credit repair: www.ftc.gov/bcp/conline/edcams/credit/coninfo_debt.htm .
The National Foundation for Credit Counseling and the Association of Independent Consumer Credit Counseling Agencies are 501(c)(3) consumer credit counseling agencies. They have detailed standards that agencies must meet, including having trained and certified counselors, free or low-cost counseling services, and published fees for debt management plans and other services.
Created by the financial services industry, www.mymoneymanagement.net provides information on selecting a reliable credit counseling agency.
The National Consumer Law Center has tips for consumers on selecting a credit counseling agency at www.nclc.org/issues/credit_counseling/index.shtml .

e-Perspectives, Volume 7, Issue 3, 2007

Federal Reserve Bank of Dallas Community Affairs Office P.O. Box 655906, Dallas, Texas 75265-5906 214-922-5377
Gloria Vasquez Brown Vice President		Alfreda B. Norman Assistant Vice President and Community Affairs Officer
Jackie Hoyer Houston Branch Senior Community Affairs Advisor		Julie Gunter Senior Community Affairs Advisor
Wenhua Di, Ph.D. Community Affairs Economist		Elizabeth Sobel Community Affairs Specialist
Roy Lopez Community Affairs Specialist
The views expressed are the authors' and should not be attributed to the Federal Reserve Bank of Dallas or the Federal Reserve System. Articles may be reprinted on the condition that the source is credited and a copy is provided to the Community Affairs Office.