The Majority of Legally Operating Credit Counseling Agencies in the State of California are Members of the American Association of Debt Management Organizations

According to the most recently published official list of legally operating credit counseling agencies in California, the majority of agencies are members of the American Association of Debt Management Organizations (AADMO).

(PRWEB) April 27, 2006 -- According to the most recently published official list of legally operating credit counseling agencies in California, the majority of agencies are members of the American Association of Debt Management Organizations (AADMO).

Credit counseling agencies in California, known under the law as “Proraters”, are required to have a trust account to protect consumer money, not charge monthly fees of more than $35, not charge more than $50 for a consultation fee, post a bond and many other requirements. California law requires that credit counseling agencies file for an exemption to licensing rather than obtain a license.

“California has one of the most complex laws in the country. We are pleased that AADMO members are at the forefront of legal compliance. AADMO has worked hard for many years to educate the industry about the law and it shows. Our job at AADMO is to help credit counseling agencies comply with the law and better serve consumers. There is no better source for reliable and consistent information than AADMO”, said Mark Guimond, Executive Director of AADMO, the trade association for the credit counseling industry.

“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”, added Guimond.

Guimond has given numerous speeches including those to the Congressional Black Caucus Foundation and the Illinois Department of Financial Institutions encouraging consumers to look for licensed agencies.

The AADMO web page (www.AADMO.org) identifies all licensed or authorized credit counseling agencies (without regard to affiliation or membership in AADMO) 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 should note that some states, such as Iowa, only require in-state agencies to be licensed. Many states, such as Alaska and Massachusetts do not currently 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. Washington, D.C. and Colorado repealed their laws and Washington State abolished its license requirement.

AADMO is working diligently to ensure the continued operation and viability of credit counseling and debt management organizations. AADMO is the only trade association for credit counseling that provides important education and information for the entire industry.

ABOUT AADMO
AADMO is the largest trade association for the credit counseling and debt management industry. Nationwide, the majority of licensed and legally operating credit counseling agencies are members of AADMO.

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.

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