NLDC Commends USOBA for their Consumer Protection Efforts

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National Legal Debt Centers (NLDC) highly commends the United States Organizations for Bankruptcy Alternatives (USOBA) in their efforts to assist consumers and establish standards in the Debt Counseling Industry

National Legal Debt Centers (http://www.nldc.us) recognizes outstanding firms and groups dedicated to consumer protection. USOBA is one such group, striving to improve the lives and well being of American consumers and NLDC commends them highly for their efforts.

The debt and credit counseling industry is in a crisis. Major credit cards are doubling their minimum monthly payments, adjustable rate mortgages are going up and foreclosures have increased 50% in the past two years, student loans are due to go up 2% next month, and new bankruptcy laws will drive many debtors into repayment plans they cannot afford. Viable alternatives to bankruptcy and foreclosure need to be made more available to the public.

USOBA is a participant in the National Conference of Commissioners on Uniform State Laws (NCCUSL) drafting committee for the “Uniform Consumer Debt Counseling Act”. USOBA is demanding legislation to regulate the industry. “No one wants to see consumers taken advantage of. There are bad actors in this industry, as with any industry. For example, those who have recently settled with the FTC and their actions make it more difficult for good companies to perform legitimate services for consumers”, said USOBA Executive Director Kallie Guimond.

In a recent report issued by the NCLC (National Consumer Law Center), with regard to consumer protection in dealing with debt counseling, they recommend: "To the extent these services are considered the practice of law they should be performed only by attorneys or counselors or other advocates working under attorney supervision."

NLDC agrees with USOBA. As in all businesses, there are always the few that seek to take advantage of consumers, that often give others in their industry a bad name. Yet, there are many legitimate debt counseling firms and USOBA is taking steps to provide uniformity.

About NLDC:

National Legal Debt Centers (http://www.nldc.us) the nations top legal debt relief firm for over 20 years, has assisted clients avoid bankruptcy and stop foreclosure. NLDC attorneys provide debt settlement services to debt counseling firms and working closely with client’s creditors, NLDC attorneys act as an advocate assisting clients who have had a legitimate hardship. NLDC’s accountants and financial planners help restore clients financial stability.    

Recent NLDC Press Releases:

1. NLDC Announces New Home Savers Program - Now Homeowners can Save their Home and Avoid Bankruptcy! April 21, 2005 -- Despite home values being at record highs, interest rates are starting to increase and many homeowners are finding themselves falling behind with their mortgage. http://www.prweb.com/releases/2005/4/prweb231336.htm
2. National Legal Debt Centers, Inc. Consumer AlertNew Bankruptcy Law - Alternatives Are Available! March 15, 2005 -- The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, which passed the Senate on Thursday limits who can qualify for bankruptcy under Chapter 7. http://www.prweb.com/releases/2005/3/prweb217823.htm
3. National Legal Debt Centers, Inc. Consumer AlertYou Can Stop Debt Collectors Harassment! March 1, 2005 -- With consumer debt increasing dramatically, some collectors are resorting to strong-arm tactics. However, collection agencies are limited by the Fair Debt Collection Act. http://www.prweb.com/releases/2005/3/prweb212543.htm
4. Credit Counseling CrisisNational Legal Debt Centers, Inc. issues Consumer Alert! February 17, 2005 -- There is a severe financial crisis now in the Consumer Credit Counseling (CCC) Industry, with many either going out of business or being closed by government agencies. Beware of these supposed non-profits! http://www.prweb.com/releases/2005/2/prweb209392.htm
5. National Legal Debt Centers, Inc. Consumer AlertWatch out for Credit Repair Scams February 1, 2005 -- There are deceptive ads on the TV, radio and internet claiming that for a small fee you can legally get rid of your credit problems. http://www.prweb.com/releases/2005/2/prweb203485.htm
6. National Legal Debt Centers, Inc. - Consumer AlertDebt Consolidation Loan Pitfalls --- With interest rates at 50 year record lows and home values at record highs, many homeowners are tapping their equity and refinancing with debt consolidation loans. This may or may not be the best move for many.    http://www.prweb.com/releases/2005/1/prweb202257.htm
7. National Legal Debt Centers, Inc., Helping Consumers Avoid BankruptcyBankruptcy alternatives are available. -- Bankruptcy is the last resort in trying to eliminate debt. The majority of people who file for bankruptcy later say they wish they had found an alternative method of resolving their problems and would not do it again. http://www.prweb.com/releases/2005/1/prweb200411.htm
8. National Legal Debt Centers, Inc., Consumer Alert Beware of Bogus Debt Elimination Scams --- Consumers need to know there are legitimate legal options available to avoid a bankruptcy. Now that the holidays are over, many consumers are faced with excessive credit card debt and are being assaulted with numerous debt elimination schemes.http://www.prweb.com/releases/2005/1/prweb196344.htm

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Jonathan Hernandez
NLDC
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