An organization’s tax status should not be used as criteria to judge a reputable, effective debt management organization or credit counseling agency.

What consumers should focus on is whether or not an organized is licensed by an appropriate state regulator agency and is accredited by The Better Business Bureau.

While most organizations in the credit counseling industry are trustworthy and operate with integrity, there have been some bad actors. Consumers should definitely do their research before enrolling in a debt management program with a particular company.

Thanks for addressing this issue!