August 4, 2009
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News: TASC and NFCC At Odds
As Americans continue to deal with the recession and struggle to pay monthly credit card payments, they are seeking the help of credit counseling agencies and debt settlement companies. The Association of Settlement Companies (TASC) has expressed some concern about the motives of many of the credit counseling agencies and the possible negative effects on consumers. TASC aims to protect the interests of credit card consumers and lobby on behalf of debt settlement companies at the state and federal level. The TASC recently announced that they have concerns that the National Foundation for Credit Counseling's (NFCC) message from the credit card industry will bring greater harm to the consumer. According to the National Foundation for Credit Counseling, they promote financially responsible behavior and help its members provide quality financial education and counseling services.
According to Chris Kesterson, President of TASC, the credit card industry isn't happy with the TASC's agenda to help consumers get out of debt. Kesterson says the organization members have over $500 million in consumer funds and they are prepared to negotiate for debt reduction. The TASC organization believes the NFCC is really supporting the credit card companies and is sending a negative debt settlement message to consumers. The TASC maintains that their mission is to protect consumers and that debt settlement helps lower consumer debt. On the other hand, the TASC says that credit counseling does nothing more than get lenders to lower interest rate. Kesterson also says that because the consumer's debt isn't really lowered, many are never able to get caught up and end up with bankruptcy.
Another issue the TASC takes is that the NFCC claims to be a non-profit organization but fails to disclose that they accept contributions from credit card companies. Therefore, according to the TASC, this constitutes a conflict of interest. Members of TASC take a pledge to follow strict rules and guidelines, and maintain high standards and ethics. For more information on TASC and its members consumers can visit tascsite.org.