Debt management bill riles agencies

Wednesday, June 4, 2008

The state Senate Banking and Insurance Committee is to vote today on a controversial bill that would open up the consumer debt management field in Pennsylvania to for-profit companies.

Nonprofits such as South Side-based Advantage Credit Counseling Service are vigorously battling the measure and a similar House bill that would allow corporations such as Care One Services Inc. of Columbia, Md., to sell debt "pooling" services to consumers frazzled over high credit card bills and, the agencies say, vulnerable to making poor choices.

"Why the urgency now?" Advantage CEO Steven J. Piotrowski asked, referring to the bills, although he pointed to the Internal Revenue Service's ongoing audits of debt managers nationwide as one likely reason.

Spurred by consumers' complaints that AmeriDebt Inc. and other debt counselors charged high fees but did little to resolve their credit problems, the IRS has been reviewing the 501(c)(3) non-profit status of hundreds of agencies.

Source: http://www.pittsburghlive.com