Credit Counseling Industry to Hold Roundtable on Standards

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The Drafting Committee for the Uniform Consumer Debt Counseling Act of the National Conference of Commissioners on Uniform State Laws (NCCUSL) met in Chicago on October 8 Â? 10 to consider regulation of the credit counseling industry.

– The Drafting Committee for the Uniform Consumer Debt Counseling Act of the National Conference of Commissioners on Uniform State Laws (NCCUSL) met in Chicago on October 8 – 10 to consider regulation of the credit counseling industry. In the course of the Committee’s meeting there was significant discussion of the imposition of standards and their place in regulation of the industry.

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 companies 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. As the first step in this process, AADMO will hold a Credit Counseling Industry Roundtable on Standards on November 10, 2004 in Orlando, FL.

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.

The Roundtable is the first step in what will be a coordinated series of meetings over time. The next meeting will be in Washington, D.C. in early February and serve as an “Industry Summit” on the matter of standards. The “Summit” will be a two day program – the first day will be individual presentations by stakeholders to outline their respective positions and the second day will serve as a drafting session in which the substance of the standard will be crafted.

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, credit counselors, 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.

For additional information, contact Mark Guimond at 540-548-1965 or Mark@AADMO.org.

CONTACT INFORMATION

Mark Guimond, Executive Director

American Association of Debt Management Organizations (AADMO)

540-548-1965

http://www.AADMO.org

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Mark Guimond
AADMO
540-548-1965
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