Need for Credit Counseling Continues to Grow Consumers Unsure Who to Trust AICCCA Provides 5 Marks of Trustworthy Agencies


Fairfax, VA — April 22, 2004 - In recent months, state and federal officials have cracked down on credit counseling agencies that have mistreated and misled consumers seeking debt management advice and services. Consumers seeking credit counseling services would be wise to arm themselves with the necessary information to make an informed choice about who to trust with their financial lives.

"Full disclosure is key when searching for debt management services," says Dave Jones, president of the Association of Independent Consumer Credit Counseling Agencies (AICCCA). "Legitimate credit counseling agencies have nothing to hide and are willing to answer all of a potential client's questions to their satisfaction and provide them with written disclosure of all fees and services."

Before agreeing to credit counseling services, consumers should make sure the agency has the following 5 marks of trusted credit counseling agencies.

A trustworthy credit counseling agency:


1. Is accredited by a reputable third party organization such as BVQI and a member of a national trade organization such as AICCCA, which assures that the agency adheres to strict standards and a code of practice that ensures consumer friendly procedures and services.
   
   
2. Provides full disclosure regarding fees and services. A reputable agency will never charge a large upfront fee or request a voluntary contribution such as the first month's payment of a debt management plan. Fees should not exceed $75 to set up a debt management plan or $50 per month to maintain the plan. If you are unable to pay fees, the agency should be willing to work with you at not cost to you.
   
   
3. Has a good customer service record. Check with the local Better Business Bureau or Attorney General's Office. Look for agencies with no or low numbers of complaints and any listed complaints should have been successfully resolved.
   
   
4. Offers community financial education and budget counseling as well as debt management services. The agency should spend an adequate amount of time with you discussing your financial situation and the options available to you. You should feel no pressure to sign up for a debt management plan.
   
   
5. Will work with all of your creditors regardless of whether or not they support the agency through fair share contributions.


Founded in 1993, Association of Independent Consumer Credit Counseling Agencies (AICCCA) is a national membership organization, established to promote quality and consistent delivery of credit counseling services. AICCCA and its members are focused on improved creditor relations, efficient processes and advanced technology to best serve clients and creditors. AICCCA members are independent nonprofit agencies that advocate for debtors, counsel millions of consumers annually nationwide and provide debt management services to consumers with excessive unsecured debt. For more information or to contact an AICCCA member office call (800) 450-1794 or visit www.aiccca.org.