Good credit counselors receive approval ratings from other agencies
Consumer credit counseling services can help consumers enormously in sorting out debt and improving their credit; or they can be costly scams. Aside from the Better Business Bureau, the counseling services have no actual ratings but some are accredited and approved by outside agencies. According to MSN Money, inclusion in these accrediting organizations is conferred only when an agency has met criteria for certification as well as integrity and fair dealing.
Association of Independent Consumer Credit Counseling Agencies
Acceptance to the Association of Independent Consumer Credit Counseling Agencies is a form of rating in that the AICCA only allows credit counseling agencies that meet its criteria: the agency is non profit; its counselors are certified, though the agency doesn't specify what their certification is; agencies are not supposed to charge fees for counseling and debt management services that exceed $50 a month; it fully discloses all of its policies and procedures in writing; counseling is comprehensive and looks at all options. Association with this agency is considered a mark of approval by MSN Money and other credit advice sites. When choosing one of the agencies from the web site, you can see the company's policies and standing with the Better Business Bureau.
National Federation for Credit Counselors
Another accrediting organization touted by MSN Money is the National Federation for Credit Counselors. This is an even older organization than the AICCA. It also requires member agencies to be non profit; to have accredited agents; and to charge low fees for services.
Better Business Bureau
The Better Business Bureau offers accreditation to companies that meet its standards in terms of business practices such as resolving complaints. It also assigns letter ratings from A through F for issues such as time in business; competency licensing; complaint resolution and government action. Many of the agencies listed in the above certification associations have A ratings or higher.
Department of Justice
The U.S. Department of Justice has a list of credit counseling agencies that have been approved to provide counseling to consumers before they are allowed to declare bankruptcy. (See Resources) The list provided by the department looks at agencies by state. Approved agencies must be non profit. The U.S. Trustee Program that approves the credit counseling agencies only looks at the programs necessary to make someone eligible to file for bankruptcy, not all programs.
