“FTC, IRS, and State Regulators Urge Care When Seeking Help from Credit Counseling Organizations”
Federal Trade Commission
October 14, 2003

An increasing number of complaints to federal and state agencies indicates that some organizations are engaging in questionable activities. Federal and state regulators are concerned that some credit counseling organizations using questionable practices may seek tax-exempt status in order to circumvent state and federal consumer protection laws.

“State charity officials are working with other state and federal agencies to remedy abuses in this area, and to assure that nonprofit credit counseling organizations operate in accordance with the charitable trust or non-profit corporation laws under which they are formed,” said Mark Pacella, president of the National Association of State Charity Officials (NASCO).

This is only a summarization. You can read the entire article on the Federal Trade Commission’s website at http://www.ftc.gov/opa/2003/10/ftcirs.shtm

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