CCCS-LA Advises Consumers to Know the Difference in Credit Counseling.

Business Editors

LOS ANGELES--(BUSINESS WIRE)--Nov. 3, 2003

As the leading nonprofit credit counseling agency in the Southland, Consumer Credit Counseling Service of Los Angeles(R) (CCCS-LA) advises consumers to know the differences between "good" and "bad" credit counseling services. CCCS-LA is a member of the National Foundation for Credit Counseling, Inc., (R) (NFCC) the nation's original nonprofit credit counseling organization.

With the recent Federal Trade Commission and Internal Revenue Service alert cautioning consumers about some credit counseling services, consumers may be more confused than ever about whom to turn to for quality financial management advice and debt relief. CCCS-LA applauds this recent action and believes it will challenge more independent agencies to adopt stronger consumer protections and improve their counseling services.

Consumers are urged to contact CCCS-LA for quality assistance when seeking financial management advice and relief from mounting debt. Through a phone call to 800-750-2227, consumers can speak with certified credit counselors who are trained in money management services. Consumers can also reach this agency online at www.cccsla.org.

"CCCS-LA has been an established member of the local community for 37 years and is here to help consumers take the guesswork out of who to trust for confidential, affordable money management advice, financial education and debt relief," says Peter Lake, CEO of CCCS-LA. "Our proven track record of client success and quality services represents the best practices of the credit counseling industry. This is due to our personal commitment to helping people overcome debt stress, as well as our commitment to protecting the interests of the people we serve."

CCCS-LA advises consumers to consider the following when seeking credible credit counseling services:

-- Consider a local, community-based, nonprofit agency, such as

ours, with a history of ethical and good-quality customer

service.

-- Request to see a list of fees in writing prior to making a

decision. Be very wary of high set-up or monthly fees and fee

deposits. Avoid agencies that keep a client's first monthly

payment to creditors as a "donation."

-- Check with the local Better Business Bureau (www.bbb.org) or

State Attorney General's office and/or news media to determine

that they have not received mounting consumer complaints about

the agency's services.

-- Consumers should have a choice of in-person, telephone or

Internet counseling.

-- Ask if you will receive 100% credit for ALL payments to

creditors.

-- The best agencies provide a full range of services -- budget

counseling and financial management education, in addition to

debt management services.

-- An agency's counselors should be trained and certified in

basic money management services. (Be wary of telemarketers who

contact you and are focused on enrolling consumers in debt

management plans.)

-- Customer service representatives should be available to help

clients during normal business hours.

-- Reputable agencies readily disclose how they are funded, how

clients' funds are collected and disbursed to creditors and

their policies on how clients' funds are protected.

-- The length of any debt management plan should be reasonable

(usually no longer than 60 months) and the terms must be

disclosed in advance of enrollment on the plan.

-- A reputable third-party organization should review the

agency's services to confirm, through accreditation, that the

agency is operating in the best interest of its customers.

-- An agency should be affiliated with a national organization,

such as the NFCC, to help assure they are required to maintain

quality standards and good customer service.

Established in 1966, Consumer Credit Counseling Service of Los Angeles(R) is a non-profit organization dedicated to helping individuals and families learn how to prevent and solve financial difficulties. The group offers professional programs including consumer credit education, confidential individual counseling and the implementation of debt reduction plans. A HUD-approved counseling agency, CCCS-LA also offers home pre-purchase counseling and education, reverse mortgage counseling, as well as default and foreclosure prevention and intervention.

Appointments for low-cost, confidential, debt counseling in person or by phone may be made by calling 800-750-2227. For further information on the organization, visit CCCS-LA at www.cccsla.org.