news article: Feds Examine Consumer Credit Services

Budget101 Discussion List Archives Budget101 Discussion List news article: Feds Examine Consumer Credit Services

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      If you’re looking to get help getting out of credit card debt,
      its “let the buyer beware” time in regard to nonprofit Credit
      Counseling companies. According to this news article, there have
      been an increasing number of consumer complaints about them,
      including high fees, hidden charges, and little or no counseling
      services. Here’s part of the article, and the link to the whole
      thing is at the bottom.

      Loraine

      Feds Examine Consumer Credit Services
      By MARY DALRYMPLE, AP Tax Writer

      WASHINGTON – Debtors beware. Consumers who turn to nonprofit credit
      counseling services could find themselves paying high fees and
      getting little advice, government agencies said Tuesday in announcing
      an investigation of the industry.

      The Internal Revenue Service and the Federal Trade Commission,
      pursuing an increasing number of consumer complaints, said some
      nonprofit credit counselors do not meet the standards for
      educational, tax-exempt status.

      The two agencies said consumers sometimes are pushed into debt
      repayment plans or consolidation loans — fixed payment plans to
      help pay off debts — without help in learning how to budget, save
      and
      manage debt.

      Complaints also have centered on high fees, hidden charges, even late
      fees when counselors fail to pay a consumer’s creditors on time. In a
      few cases, counselors have not paid a consumer’s creditors at all,
      the agencies said.

      “Many of these groups provide a valuable service to consumers, but
      some use the tax code to skirt consumer protection laws,” said IRS
      Commissioner Mark Everson.

      https://story.news.yahoo.com/news?
      tmpl=story&u=/ap/20031014/ap_on_go_ca_st_pe/credit_counseling_4

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Budget101 Discussion List Archives Budget101 Discussion List news article: Feds Examine Consumer Credit Services