Choosing
a Debt Counseling Agency
If you want to work with a Credit Counseling Agency,
interview several. Here are some questions to ask.
Services and Fees
- What
services do you offer?
- Do you
have educational materials?
- If so,
will you send them to me? Are they free? Can I access them on the
Internet?
- In
addition to helping me solve my immediate problem, will you help me
develop a plan for avoiding problems in the future?
- What
are your fees?
- Do I
have to pay anything before you can help me?
- Are
there monthly fees?
- What’s
the basis for the fees?
- What
is the source of your funding?
- Will I
have a formal written agreement or contract with you?
- How
soon can you take my case?
- Who
regulates, oversees and/or licenses your agency?
- Is
your agency audited?
- Will I
work with one counselor or several?
- What
are the qualifications of your counselors?
- Are
they accredited or certified? If not, how are they trained?
- What
assurance do I have that information about me (including my address and
phone number) will be kept confidential?
Repayment Plan
- How
much do I have to owe to use your services?
- How do
you determine the amount of my payment?
- What
happens if this is more than I can afford?
- How
does your debt repayment plan work?
- How
will I know my creditors have received payments?
- Is
client money put in a separate account from operating funds?
- How
often can I get status reports on my accounts?
- Can I
get access to my accounts online or by phone?
- Can
you get my creditors to lower or eliminate interest and finance charges or
waive late fees?
- Is a
debt repayment plan my only option?
- What
if I can’t maintain the agreed-upon plan?
- What
debts will be excluded from the debt repayment plan?
- Will
you help me plan for payment of these debts?
- Who
will help me if I have problems with my accounts or creditors?
- How
secure is the information I provide to you?
Check with your state Attorney General, local consumer
protection agency and the Better Business Bureau to find out if consumers have
filed complaints about the provider you are considering.
Any reputable credit counseling agency should send you free
information about itself and the services it provides without requiring you to
provide any details about your situation. If not, consider that a red flag and
go elsewhere for help.
Please also review related articles.