Choosing a Credit Counseling Organization

• Check with state agencies and your local Better Business Bureau to find out about the company's reputation
• Beware of high pressure sales tactics; shop around; and don't be intimidated into signing any contract immediately
• Make sure every promise made to you is in writing, on company letterhead, signed, and dated by the counselor and/or his supervisor. Note: If you cannot get the promise in writing, you should assume you cannot rely upon it
• Inquire about qualification of counselors
• Ask for and follow up on references
• Beware of so called "voluntary contributions" that may not be voluntary at all. If they are voluntary, you should be able to say no to the contribution request and still get reasonable assistance
• Beware of high monthly service fees/charges; a minimum reasonable fee is $20-30 per month. However, the number of accounts involved is a key consideration ... fees above the minimum are negotiable
• Approved 501 (C) 3 crediting counseling organizations are obligated to provide consumer education. Make sure to ask how consumer education is provided; make sure it meets your needs, and again, make sure the promise is in writing
• Beware of promises to help you get out of debt pain-free. It is highly unlikely that can be accomplished
• Make sure to understand any and all written agreements with the credit organization. Do not sign any agreement until you or someone you trust can verify what is being promised and agreed to by you and the credit organization
• Make sure creditors are willing to work with the credit organization you choose
• Never agree to have your monthly statements go anywhere but directly to you. For example, never allow your statements to be sent to the credit counseling organization.
• Monitor monthly statements closely
• For more consumer information, call the Federal Trade Commission (FTC) toll-free at 1-877-382-4357 or visit their website at: www.ftc.gov

Information adapted from the FTC's checklist for choosing a reputable agency