Getting Out of Debt: Who Should You Trust? Consumers Group Offers Tips on Finding Fair and Unbiased Credit Counseling

March 4, 2004

WASHINGTON, /U.S. Newswire/ -- Credit counselors provide a valuable service to consumers in debt. But, as with any service, consumers should be aware there are differences among agencies. Some are more focused on good consumer service than others, according to a group of consumers that have experience with credit counseling. How can a smart consumer who wants to get out of debt choose the agency best for them?

Consumers For Responsible Credit Solutions (CRCS), a nationwide group of approximately 500 consumers in credit counseling, has created a guide (available at http://www.responsiblecredit.com) to help Americans find the best credit counseling agency.

"The most important rule when searching for a credit counseling agency is to make sure the agency relies on customer satisfaction," said Michael Barnhart of CRCS. "Agencies dependent on large banks and credit card companies for funding are incapable of providing fair, unbiased advice."

Here are the top five tips from the CRCS guide to better arm consumers against credit counseling deceptions:

(1) They must work for you

Unbiased advice is important. Some agencies are paid mostly by creditors, banks and credit card companies and actually have creditors on their board of directors. You should directly ask if the agency is working for you or for the creditor. The Federal Trade Commission requires that you be advised of any "dual" responsibility or conflict of interest.

(2) They must be accessible

Check that the agency provides up-to-date technology like an IVR phone system, which provides round-the-clock essential information to both consumers and creditors. Make sure you can easily access information via phone or the Internet. A surprisingly large number of agencies lack this kind of service consumers have come to expect.

(3) They must have convenient hours

Be weary of agencies that do not offer weekend hours and offer only limited hours of service on selected days during the week. This may seem like common sense, however some agencies are only open three hours a week. Waiting for weeks for the next in-person interview slot should be a tip-off that the agency has other priorities than consumers.

(4) Are they a good credit tutor?

Assess their educational services. A good credit counseling agency will offer a variety of tools that will help consumers better understand debt, credit, budgeting and other relevant lifestyle habits. A good agency will not only help you get out of debt, they will help you stay out of debt.

(5) They must respect your privacy

Debt is a very personal matter. Make sure you can "do business" over the phone. Some credit counselors want consumers to appear in person, which can be embarrassing and inconvenient.

"When joining a credit counseling agency, like anything else, it is important to go with what is most comfortable," said Barnhart. "Our guide will help any consumer ascertain what credit counseling agency is best for them."

To access the complete guide to a safe and worthwhile relationship with a credit counseling agency, visit the CRCS interactive Website, http://www.responsiblecredit.com.