dcsimg Many Credit Counselors Losing Non-Profit Status - indexcreditcards.com

Credit Card Calculators

How long will it take to pay off my credit card?

In the News
  • "As comprehensive a list as you'll find of all the credit card offers on the table now."

Many Credit Counselors Losing Non-Profit Status

by Peter Andrew
Many Credit Counselors Losing Non-Profit Status

NOTE:

To offer content from IndexCreditCards.com, including our weekly

summary of credit card rates, Credit

Card Monitor, in your publication or on your Web site, please

contact syndicate@indexcreditcards[dot]com.

 

Many

Credit Counselors Losing Non-Profit Status

If you’ve

ever needed help with your debt payments, you may have used

the services of a non-profit credit counseling service. Perhaps

that non-profit status made you feel the agencies were more

credible, not simply trying to make a buck off of your poor

financial health. If so, the Washington

Post reports that many of these credit counseling firms

are losing that tax-exempt status, due to complaints that they

are overcharging and pressuring customers, and due to the Internal

Revenue Service’s view that they are paying no taxes while giving

fat salaries to agency CEOs and funneling money out to for-profit

affiliates.

So

far, not one credit counseling agency has kept its tax-exempt

status, out of over 30 that the IRS has audited.

The

article goes on to mention that at the same time credit counselors

are losing their tax-exempt status, last year’s new bankruptcy

law mandates that many new bankruptcy filers will have to use

“approved” credit counselors as part of their bankruptcy

program. If the IRS can’t find even one credit counselor that

provides enough educational services to deserve its non-profit

status, who will counsel bankruptcy filers?

 

Disclaimer:The information in this article is believed to be accurate as of the date it was written. Please keep in mind that credit card offers change frequently. Therefore, we cannot guarantee the accuracy of the information in this article. Reasonable efforts are made to maintain accurate information. See the online credit card application for full terms and conditions on offers and rewards. Please verify all terms and conditions of any credit card prior to applying.

This content is not provided by any company mentioned in this article. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any such company. CardRatings.com does not review every company or every offer available on the market.

Published  (Modified )

Share this article with: