How to Tell if a Credit Counseling Company is Governement Approved
We received a question about credit counselors from Sabrina on CreditBloggers.com this morning. She asked:
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Bringing together leading experts to discuss credit, loan, debt and identity theft topics, CreditBloggers provides readers with unique insight and straight answers about the financial world. This credit blog is moderated by Emily Davidson, formerly a TransUnion consumer credit expert.
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Good question Sabrina! It can be difficult to track down background information on a credit counseling agency if you are not sure where to look.
Your first stop should be the Better Business Bureau. Using the name and state or URL, you can find information about the company's consumer complaints, business practices and more. Here is the BBB record for Delray Credit Counseling.
Next, visit the Department of Justice website to see if the credit counseling agency is government approved. This list is maintained as part of the recent bankruptcy reforms that required consumers to obtain credit counseling before they file. In order to become government approved, credit counseling agencies have to be non-profit, bonded and in compliance with applicable laws. The company must also provide detailed information about their experience, counselor training and fees. You can read the more about the qualifications online here. Delray Credit Counseling is not listed as a government approved agency.
Finally, you should also investigate the counseling agency on your own. Investigate the agency's fees, practices and experience. Ask how their counseling services may impact your credit scores. See if they can provide you with client references. The FTC website has some more information about choosing a credit counselor.
Have you gone through credit counseling? Share your tips, cautionary tales and other feedback in the comments section below.