Credit counseling organizations provide valuable services to the public. They educate consumers about better money management techniques, promote debt reduction strategies, and help their clients avoid bankruptcy and its financial consequences. However, some credit counseling organizations prey on the vulnerability of the clients they are supposed to be helping.
The purpose of this article is to raise awareness that there is a potential for abuse by credit counseling organizations that have received or are requesting classification as organizations described in IRC 501(c)(3).
contents
Overview
Part I: Federal Efforts Protecting Consumers Against Financial
Fraud
· The Credit Repair Organizations Act
· The Federal Trade Commission Act
Part II: State Efforts in Protecting Consumers Against Financial
Fraud
Part III: Voluntary Credit Counseling Agency Certification
Part IV: Qualification for Exemption under IRC 501(c)(3)
Part V: Exemption Applications Case Development
Part VI: Conclusion
Part VII: Addendum
· The Credit Repair Organizations Act
· Consumer Alerts
