AADMO Provides Research to U.S. Senate for Investigation of Industry
The American Association of Debt Management Organizations (AADMO) has released a 36 page report showing that executive compensation in the credit counseling industry is commensurate with that in the general non-profit organization sector.
The report was submitted to the U.S. Senate's Permanent Subcommittee on Investigations to provide research about the credit counseling industry in preparation for the Subcommittee's hearing to be held March 24, 2004.
The Massachusetts Senate, Committee on Post Audit and Oversight, issued a report in April 2002 titled "Losing Credibility". This report claimed that credit counseling salaries are "considerably higher than an average nonprofit director's salary."
The Consumer Federation of America and the National Consumer Law Center issued a report in April 2003 with the title, "Credit Counseling in Crisis". The study makes note of "lavish salaries for agency officers or members" and "a number of questionable practices related to compensation of officers and employees."
ABOUT THE STUDY
The AADMO Credit Counseling Industry Compensation Study was commissioned to determine if executive compensation in the credit counseling industry is commensurate with executive compensation in the general non-profit (i.e. tax-exempt) organizations sector. In the AADMO Study, the executive compensation for more than 500 individual salaried positions in the general non-profit industry and Form 990 tax returns for more than 150 separate non-profit organizations were evaluated. The non-profit entities reviewed were from a nationwide, broad spectrum including associations, education, civic leagues, business groups, civil rights groups, arts, technology, environmental, etc.
The AADMO Study also reviewed the executive compensation for more than 260 salaried positions in the credit counseling industry and Form 990 tax returns for more than 180 credit counseling agencies.
ABOUT AADMO
AADMO is the credit counseling and debt management industry's largest trade association with more than 150 members nationwide. It is an industry advocacy and education organization whose mission is to promote and ensure the continued operation and viability of credit counseling and debt management organizations.
AADMO is the only trade association to have held state law compliance workshops with the New York State Banking Department and the California Department of Corporations (the enforcement agencies) upon enactment of their respective laws governing credit counseling and AADMO is the only trade association for the industry to publish a formal summary of state laws that has been reviewed by state regulators. AADMO was recently recognized in Roll Call, the "official newspaper of Capitol Hill", as working to rid the marketplace of "bad actors" in credit counseling.
For a copy of the AADMO Credit Counseling Industry Compensation Study or for more information, please contact Mark Guimond at 540-548-1965.
