What Consumers Should Know Before Choosing A Credit Counseling Agency

Consumer Credit Counseling Service of Mobile (CCCS) advises consumers to exercise caution when seeking debt relief by providing the following list of questions that you should ask credit counseling or debt management organizations before signing up for financial service assistance. It is important that you understand and ask the following questions of all agencies before making a choice for services:

Quality Assurance/Credibility

• Are they non-profit?
• How are they funded?
• Is the agency accredited by a reputable third-party organization such as COA?
• Are their counselors certified by a reputable third-party organization such as the NFCC?
• Are they affiliated with a national organization like the NFCC to help assure quality standards and good customer service?
• How long has the organization offered credit counseling services or do they just offer debt management services?
• Does the company have complaints filed with the State Attorney General's Office or the local Better Business Bureau in areas where they do business?
• Is the agency currently under investigation by a federal agency?
• Does the agency have a board of directors that is comprised of representatives of all segments of the community they serve and are any board members related to the staff of the agency?

Fund Management and Safety

• How are client funds collected and disbursed to creditors?
• What policies are in place to assure protection of client funds?
• Are any client payments or portions of client payments retained for fees?
• Are the agency's financial records, including the client fund account, audited by a third-party on an annual basis?

Service Delivery

• What fees does the agency charge or request?
• Do they fully disclose their fees and services up-front?
• Will they work with all creditors regardless of whether they are financially supporting the agency?
• Is counseling offered by telephone and in-person? Does the consumer have a choice?
• Does the agency provide financial management and budget counseling in addition to debt management services?
• Does the consumer have a choice of services such as educational workshops to attend?
• After enrolling in a DMP, are customer service representatives available to help clients?
• Do they have a local office the client can visit especially if there is a problem?
• How will working with the agency impact clients' credit?

For more information, contact us at (251) 602-0011.