The Credit Counseling Industry

If you found out about ADVANTAGE by surfing the internet or by scanning the yellow pages then you are well aware that there appears to be a lot of different credit counseling agencies out there. If this is your first time searching then you are probably asking yourself, "who should I choose?" If this is not your first time searching or you have stayed abreast of the news regarding this industry, then you are probably asking yourself, "who can I trust?"

Recently both the Federal Trade Commission and the Internal Revenue Service have been scrutinizing non-profit corporations in general and the credit counseling industry in particular. It has come to light that companies that have been practicing under the protection of a tax-exempt status are really companies operating for the profit of their directors and officers and not necessarily for the benefit of their clients.

Some companies have been found to be using deceptive practices to entice consumers to enroll with their services. Some companies have been found to charge very high up front service fees as well as monthly fees. Other companies misrepresent themselves as a credit counseling agency just to obtain your name and number so they can sell that information to other companies. With so many different companies and some acting unscrupulously it is hard to know which service to use.

Below please find a list of questions you should ask any credit counseling agency you are interested in using and how ADVANTAGE meets those questions.
 

»	Is the Credit Counseling agency well-established?
	Advantage Debt Management of America and its affiliates have been practicing credit counseling since 1934. Along with the internet service it provides there are seven branch locations in both Ohio and Kentucky. Over the decades we have provided counseling, educational programs, seminars and debt management plans to thousands of consumers. Many agencies only recently started offering credit counseling services.
»	Is the Credit Counseling agency reputable?
	Advantage Debt Management of America and its affiliates are a licensed credit counseling agency, an approved 501(c)(3) a member of the Association of Independent Consumer Credit Counseling Agencies, a member of the American Association of Debt Management Organizations, and we are audited bi-annually by the British Standards Institute (BSI, Inc.). BSI is the world's leading international testing, registration and certification organization. We have been certified and registered under ISO 9001:2000, which is one of the toughest managerial testing programs in the world. This insures that we provide you with the best possible service by setting strict standards and procedures under which we operate.
»	Is the Credit Counseling agency bonded and/or insured?
	At ADVANTAGE we believe in keeping the money our clients have entrusted us with safe. To meet this goal we keep all client funds in a separate trust account so that they are not intermingled with our operating funds. We carry insurance to ensure that if any funds are misappropriated they will be covered and will not cause our clients any losses, and our organization is regularly audited by an independent accountant to make sure that all of our client’s accounts are accurate and balanced.
»	Are the Counselors certified?
	At ADVANTAGE all of our counselors undergo a strict in-house training program to ensure each counselor is capable of providing valuable and appropriate advice to those that contact us. Then our counselors are certified by a third party agency to ensure that their training is complete and that each counselor’s knowledge base is suitable for work they are doing.
»	What is the cost for counseling and a debt management plan?
	At ADVANTAGE we pride ourselves on providing FREE counseling to all that call our organization. There is no charge for discussing your financial situation and for receiving information and advice. If enrollment in a debt management plan is the best solution to your financial needs then we do request that you contribute to our agency to help cover the costs that are incurred in handling your account. The contributions are voluntary and the amount that we request is dependant upon how many debts you need assistance with and in which state you reside. If any agency requests that you contribute more than $50.00 to start and/or $50.00 a month you should beware.
»	Does the Credit Counseling agency supply you with a copy of the agreement?
	When you enroll in a debt management plan with ADVANTAGE, you will receive a review of the counseling session as well as a copy of the agreements that are needed for the process to begin. Always read your contracts in full and make sure that it is not loaded with extra costs. Some agencies do not disclose everything during the counseling session and so you must make sure to read all of the fine print before signing on the dotted line.
»	Will you receive a monthly statement from the Credit Counseling Agency?
	ADVANTAGE will mail you a statement every month you’re enrolled which details the activity on your account. These statements will reflect what took place with you account the previous month and are mailed out around the 10th of each month. You will also still receive you monthly statements from your creditors which you will then be able to compare to your ADVANTAGE statement to make sure that the funds you are giving to ADVANTAGE are being disbursed to your creditors.
»	How long will the agency hold your funds before disbursing them to your creditors?
	At ADVANTAGE a client’s funds are held for no more than 7 days after the funds have been received and cleared. ADVANTAGE disburses our client’s funds in weekly check runs, sending the payments as quickly as possible using both paper and electronic checks to ensure speed and accuracy. Many agencies only disburse funds every 30 days increasing the chance that payments will not post on time.
»	Can you cancel the program without penalty?
	At ADVANTAGE we do not want to place you in a binding contract that only puts you further in debt. With ADVANTAGE you can cancel your account at any time for any reason. The one downfall to canceling your repayment plan before it is completed is that the benefits you get as a result of using our service will be removed and your previous contract terms with your creditors will be reinstated.