Not all credit counseling agencies are the same. Some credit counseling agencies provide very useful information for their clients that can help people manage their debts. However, there are also some unethical businesses that claim to be credit counseling agencies that actually do their customers more harm than good. Therefore, it is important for people who are looking for a reputable credit counseling agency to research any potential agencies and to find one that is qualified to meet the consumer’s needs.
There are several ways to find useful and legitimate credit counseling agencies that can help you make sense of your debt and organize a path for recovery. You might want to check on counseling agencies with which you are thinking about doing business in the following ways:
- Look at the U.S. Trustee Program. Any consumer who files for bankruptcy must have completed counseling by an approved credit counseling agency (absent certain emergency circumstances.) So, if you are thinking about filing bankruptcy then it is important to receive your credit counseling from an agency approved under the U.S. Trustee Program. Even if you do not think that you will be filing for bankruptcy, this list of agencies might be useful to you because they are considered to be reputable agencies by the US Department of Justice.
- Look at the National Foundation for Credit Counseling (NFCC) or Association of Independent Consumer Credit Counseling Agencies (AICCCA) Directories. The NFCC and the AICCA put all of their member credit counseling agencies through thorough and demanding accreditation processes in order to gain membership in either organization. Both the operating practices and the effectiveness of counseling are investigated and considered in the accreditation process.
- Check Your State Attorney General’s Website. The Attorney General’s office in each state keeps records about complaints against businesses including credit counseling agencies. It can be useful to determine if other consumers have filed complaints against an agency.
- Check With the Better Business Bureau. Like the Attorney General’s Office, the Better Business Bureau handles complaints against businesses including credit counseling agencies. The Better Business Bureau will also tell you if the agency responded to the complaint and if the complaint was resolved.
- Get Personal Recommendations. Sometimes the best recommendations come from people that you know. If you know that someone whom you trust has had a bankruptcy or personal financial problems in the past few years then it might be useful to speak with that person about their credit counseling agency experiences.
- Interview Potential Agencies. Ask specific questions about the services they provide, their fees and their policies. Reputable firms will be willing to answer your questions so that you know exactly what you are hiring them to do.
It can be a difficult process to find a reputable credit counseling agency. However, this type of counseling is required if you are filing for bankruptcy and it can help you develop a plan to get out of debt even if an immediate bankruptcy is not planned.
