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If you have been following the news about the credit counseling industry, you might be overly concerned by charlatans who rip off customers and disappear in thin air before you know about it. If you are considering consumer credit counseling, here is some advice for you:

Non-profit credit counseling
Always consider working with a non-profit credit counseling company. These not-for-profit credit counseling companies will save you several hundred dollars in the long run. Be on alter for rip offs and scams.

Length of business
Do not hesitate to ask the consumer credit counseling company when they were incorporated and how long have they stayed in business. Aim for credit counseling companies that have been in business for 8-10 years at the minimum.

COA and ISO accreditation
Ask the consumer credit counseling company if they are accredited by Council of Accreditation (COA) or the International Standard Organization (ISO). If they say they are accredited, it won't hurt to check if they are currently accredited and the accreditation has not lapsed.

Credit counselor certification
The credit counselor or the entire team of credit counselors should be accredited. This helps you with the peace of mind you need before delving into the credit counseling process.

HUD certified
If you have debt other than just credit card debt, ask if the consumer credit counseling company is certified by department of housing and urban development commonly referred to as HUD.

There is quiet a lot at stake when working with a credit counseling company. They have access to all your sensitive information and your accounts so a thorough research is necessary before you decide to work with a company of your choice. When you nail down a few companies you would like to work with, consider the following tips:

Better business bureau
Call your local BBB and find out how many complaints have been reported for the credit counseling company. Also check to see how many of those complaints are unresolved. You do not want to fork your money with a credit counseling agency that has too many cases unresolved. In some major cities, you will be able to find this information by logging in to the website of the local better business bureau.

National Association of Attorneys General
You can visit the NAAG website and view contact information including address and phone number of your state's office Attorney General. Call you state's Attorney General and ask if any complaints have been filed or legal action taken against the credit counseling agency.

GuideStar
The GuideStar website is a handy resource to find non profit agencies in general. You will be able to find non-profit consumer credit counseling companies as well. Check for red flags like excessive salaries and pay packages, large payouts to family members of the manager etc. Some non-profit companies are notorious in funnelling money to the account of the owners or their relatives. Following the above advice will help you avoid consumer credit counseling scams and rip offs.

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