In response to the U.S. Federal Trade Commission (FTC) closure of an alleged credit counseling agency and the National Consumer Law Center’s (NCLC) updated report on “Credit Counseling Agencies’ Compliance with State Licensing Laws”, the American Association of Debt Management Organizations (AADMO) is reminding consumers that the nation’s most comprehensive listing of authorized credit counseling agencies can be found on the AADMO web page at www.AADMO.org.

Many, but not all, states have laws regulating credit counseling agencies. Through the AADMO web page, consumers can learn what states issue licenses, those agencies that are licensed and where to find those agencies.

The AADMO web page (www.AADMO.org) identifies all licensed or authorized credit counseling agencies (without regard to affiliation or membership) that are approved by the applicable state. Web sites for some organizations guide consumers to selected agencies but not all legally approved agencies.

Consumers can get help from legitimate and approved credit counselors. To find a list of authorized agencies published by a state visit www.AADMO.org and click on the "Find a Credit Counselor" button.

The AADMO web page links consumers directly with states that publish lists of authorized agencies. Those states that regulate credit counseling agencies but do not have a list of authorized agencies on the web have the appropriate contact information listed. Those states that do not require, or do not publish a list, are indicated with “List of authorized credit counseling agencies not available.”

Consumers are cautioned that some states, such as Iowa, only require in-state agencies to be licensed. Many states, such as Alaska, Massachusetts, Texas and South Carolina do not have any license requirements for credit counselors and therefore do not have any list of authorized agencies. Other states, such as Florida, Georgia and Ohio, have laws regulating credit counseling but do not have a license requirement.

California requires that credit counseling agencies file for an exemption to licensing rather than obtain a license. Washington, D.C. and Colorado repealed their laws and Washington State abolished its license requirement.

AADMO supports a single federal law governing the credit counseling industry instead of the confusing system of antiquated state laws, differing practices and contradictory requirements.

ABOUT AADMO
AADMO is the credit counseling and debt management industry’s largest trade association. It is an industry education and advocacy organization whose mission is to promote and ensure the continued operation and viability of credit counseling and debt management organizations. AADMO provides its members and the consumer public with information about the credit and debt counseling industry. AADMO members are consumer credit counseling agencies, debt management organizations, credit counselors, personal finance educators, credit and debt information educators, consumer lawyers and many others.

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 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.