$256 Million Credit Counseling Class Action Judgment Spurs Industry Compliance Program

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"The fact that a $256 Million class action judgment was just ordered in credit counseling should be of grave concern to every organization that is under audit by the IRS, had a change in its tax-exempt status, operates as a taxable entity or is a non-profit."

Texas, April 13, 2009 - The American Association of Debt Management Organizations (AADMO), the largest association for the credit counseling industry, will hold a special educational session that offers critical credit counseling agency legal compliance information at its Spring Conference in San Francisco, CA on May 12 and 13, 2009.

According to Mark Guimond, Executive Director of the AADMO, "The fact that a $256 Million class action judgment was just ordered in credit counseling should be of grave concern to every organization that is under audit by the IRS, had a change in its tax-exempt status, operates as a taxable entity or is a non-profit."

"The legal landscape has been rough for years and a judgment of this nature and size is sure to create a new plaintiffs' bar that specializes in going after credit counseling agencies", said Guimond.

"Those that understand the facts and the challenges will be better prepared to protect their agencies. Those who are ignorant of the law or wrongfully believe that it doesn't apply to their agencies will face substantial risk", added Guimond.

The AADMO Spring Conference will feature the following sessions:

  • Two of the Most Important IRS Documents Ever for Credit Counseling Agencies
  • Foreclosure Consulting: Dangers, Pitfalls and the Potential Nightmares
  • Charitable Solicitations - The Achilles Heel of 501(c)(3) Status?
  • The Industry & AADMO: Taking Your Industry's Only Trade Association to the Next Level
  • The Uniform Credit Counseling Industry Consumer Contract
  • Yes, You are a Money Transmitter! The Law You Need to Know
  • CROA Part Deux - Implications and Realities for Credit Counseling
  • Credit Counseling Compliance Software
  • Legislative Update & Review
  • Review of State Laws with Regulators
  • And More to Come...

The AADMO Spring Conference program and registration information may be found at http://www.AADMO.org.

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 is an industry education and advocacy organization the mission of which is to promote and ensure the continued operation and viability of credit counseling and debt management organizations.

AADMO members are consumer credit counseling agencies, debt management organizations, credit counselors, personal finance educators, credit and debt information educators, bankruptcy pre-filing counselors, bankruptcy pre-discharge 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. AADMO is also the only trade association for the industry to publish a formal summary of state laws that has been reviewed by state regulators.

For more information visit http://www.AADMO.org or call 281-361-2325.

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MARK GUIMOND
AADMO
281-361-2325
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