WASHINGTON – Consumers for Responsible Credit is warning consumers that they some credit counseling agencies should be subject to more scrutiny. In an 80-page report released on July 13, CRC, a national advocacy group, said those seeking help from a National Foundation of Credit Counseling affiliate such as Consumer Credit Counseling Service agencies (CCCS) may be "relying on the reputation of an organization whose leadership and affiliates have been associated with some recent, troubling financial scandals." The report is titled "Nonprofits In Service to One of America's Most Profitable Industries: A Report On How Creditor Control of the Credit Counseling Industry Hurts Consumers and The Need For Fundamental Reform." Among other things, it also makes recommendations for "reducing creditor control of the industry." "The best way to make the credit counseling industry more favorable to consumers is to reduce the direct influence and control of creditors," including a ban of creditor management and funding of agencies to simply limiting or even disclosing the creditors' influence. The report also includes recommendations to the industry for improvement of customer service such as the establishing of national standards and opening the industry to professional financial services businesses that already serve consumers and are already subject to regulatory scrutiny. More details on the report can be found at www.responsiblecredit.com.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.