Credit Counselers Under Scrutiny
Jennifer Bayot reports in the New York Times on abuses by credit counseling agencies. The Senate Permanent Committee on Investigations yesterday released a report (PDF) on the subject.
At the hearing yesterday, former employees of two leading agencies - both profiled in the subcommittee's report - testified that their jobs had largely consisted of extracting hefty service fees from indebted consumers."I thought that working for a nonprofit would be a great way to interact with people and make a difference in someone's life," said Johnpaul Allen of New Market, Md., who last year worked for AmeriDebt. "What I found at AmeriDebt was nothing short of a sweatshop - a telemarketing outfit taking advantage of thousands of people in bad financial situations."
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