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Important information

• Additional Info:

  The following comments provide general information for consumers, and do not necessarily reflect the practices
  or record of any particular company.
  
  According to information provided by the Internal Revenue Service dated 10/14/2003-IRS, FTC and state regulators urge consumers to be cautious when choosing a credit counseling organization. Many credit counseling organizations provide valuable advice, education and assistance to those seeking to better manage their debt. But an increasing number of complaints to federal and state agencies indicates that some organizations are engaging in questionable activities which may include seeking tax-exempt status in order to circumvent state and federal consumer protection laws. State and federal statutes regulating credit counseling agencies often do not apply to Section 501(c) (3) tax-exempt organizations.
  
  Many of these groups provide a valuable service, but some use the codes laws to skirt consumer protection laws. Consumers need to be wary of the"quick fixes" offered by some organizations.
  Consumers can protect themselves from deceptive credit counseling practices by following these tips:
  
  *Make sure the organization will help manage your finances better through counseling and education.
  
  *Carefully read agreements. It should describe in detail the service to be performed; the payment terms for these services, including their total cost; how long it will take to achieve results; any guarantees offered; and the organizations' business name and address.
  
  *Beware of high fees or required "voluntary contributions" that, with high monthly service charges, may add to your debt and defeat your efforts to pay your bills. It is illegal to represent that negative information, such as bankruptcy, can be removed from your credit report. Promises to "help you get out of debt easily" are red flag.
  
  *Make sure that your creditors are willing to work with the agency you choose. If they are, follow up with those creditors regularly to make sure your debt is being paid off.
  
  *Check with state agencies and your local BBB to find out about a specific credit counseling organizations' record.
  
  To address some of the concerns, the IRS has stepped up its enforcement efforts to ensure that existing Section 501(c) (3) organizations are complying with the applicable rules and regulations. Further information and background can be found in Fact Sheet 2003-117.
  
  If consumers believe that they have been victims of credit improvement fraud, they should immediately file a complaint with the FTC by calling toll-free: 1-877-FTC-HELP, or go online at the Federal Trade Commission Web site.
  
  Additional Media Contacts:
  
  Cathy MacFarlane, Office of Public Affairs
  Federal Trade Commission
  202-326-2180
  
  Mark Pacella, President
  National Association of State Charity Officials
  717-783-2853
  
  Related Items:
  
  Fact Sheet 2003-117
  
  Federal Trade Commission-Become familiar with the latest
  scam alerts; file complaints.
  
  Tax Information for Charities & Other Non-Profits-Determine
  whether the organization is tax-exempt and what an
  organization must do to maintain that status.
  
  National Association of State Charity Officials-Obtain a list
  of state charity official offices.
  
  Office of Financial Education-To find more information on
  federal financial education programs and resources.
  
  These are some helpful tips from your Better Business Bureau.