The bankruptcy reform legislation recently approved by the U.S. Senate, and sure to pass the U.S. House of Representatives, carries a commitment from President Bush to sign the legislation into law and will impose requirements for consumers to seek non-profit credit counseling prior to filing for bankruptcy.

The credit counseling agencies able to provide this service for consumers will be subject to a variety of standards. To help create a comprehensive industry standard for responsible practices and consumer protection, the American Association of Debt Management Organizations will hold a roundtable drafting session in Washington, D.C. on March 21, 2005.

Many of the criticisms of work performed on the elements of current industry standards surround the development as a process where there is neither prior public input nor real industry-wide consensus. This lack of transparency has caused many agencies to have no choice but to undergo costly, burdensome and redundant accreditation through numerous accrediting agencies all without any significant input or contribution to the substance of the standard.

Further, many elements of the standards used today discourage competition, stifle innovation and serve to limit the choices of the industry for service providers. The development of new standards will promote a better marketplace not restrain it.

There is widespread concern that current standards unnecessarily restrict the use of independent accreditation agencies, certification entities and other providers. A true industry-wide Roundtable with all interested parties, not just a handful working to control a limited segment of the market, can develop a standard that is fair, reasonable, not onerous, not unduly expensive and adequately protects consumers.

Therefore, the American Association of Debt Management Organizations (AADMO) has chosen to undertake the implementation of a process to develop a true industry-wide standard for best practices. AADMO believes that the shortcomings of the current standards have directed the marketplace to develop a new best practices standard to replace those that are in place today.

The first step in the process was an organizational meeting held in Orlando, FL in November 2004. This next step is the substantive drafting of actual language for the standard and discussion of the positions of the respective stakeholders.

AADMO will hold the Credit Counseling Industry Standards Council Roundtable drafting session in Washington, D.C. on March 21, 2005 at the Sheraton Pentagon South Hotel (Alexandria, VA - National Airport) from 9:00 AM - 5:00 PM.

This is an open meeting at no charge for all segments of the industry and all interested stakeholders. The Roundtable is open to credit counseling agencies, creditors, consumer groups, regulatory agencies, legislators and any other interested individuals or organizations.