13 Questions to Ask
Before Committing to a
Consumer Credit Counseling Service

Consumer credit counseling agencies can provide help to struggling consumers. But like other debt relief options, it isn't for everyone. Consumer credit counseling has a high dropout rate ⁱ, which may indicate that consumers turn to credit counseling even when it's not the best solution to their debt problems.

Moreover, not all consumer credit counseling agencies are the same. Like other industries, there have been a few bad apples ⁱⁱ and it's important to do your homework before committing to any agency.

Knowledge is power, especially when you are in debt. Learn the most you can about any debt relief option before you commit. Here are a few good questions to ask before committing to a consumer credit counseling agency:

13 Questions to Ask Credit Counseling Agencies When Evaluating their Services:

Will the agency refund fees if the services rendered are not satisfactory?
How much training do counselors at the agency receive?
Is the agency accredited by a trade association, such as the National Federation for Credit Counseling (NFCC) or the Association of Independent Consumer Credit Counseling Agencies (AICCA)?
Do I have to make two payments up front in order to stay current?
Does the agency have an independent board of directors?
Does the agency keep clients' funds in a trust account, separate from its operating funds?
How long has the consumer credit counseling agency been in business?
What types of services does the agency offer?
How long will it take to complete a debt-management program?
What effect will working with a credit counselor have on a credit rating?
Are agency services confidential?
If I cannot make all payments in full and on time, will I get kicked out of your program?
Will I be subject to any late fees?

If you have any question about debt settlement or Debt Shield's debt negotiation and settlement program, contact a professional debt consultant today for your personalized debt analysis.

The statistic is derived from the report, “Credit Counseling in Crisis,” published by Consumer Federation of America, in conjunction with NCLC, April 2003, page 27: “Most agencies do not release information on their retention rates, although a 1999 NFCC memo cited by Consumer Reports found that just 21% of their clients completed DMPs while about the same percentage left to self-administer debt payments. NFCC now reports completion rates of about 26% with about 20% leaving for self-administration.”
“FTC Testifies about Credit Counseling Abuses,” FTC,
http://www2.ftc.gov/opa/2004/03/credittestimony.shtm.