Credit Counseling Industry to Convene Panel to Address Problems with the Uniform Debt Management Services Act

The American Association of Debt Management Organizations (AADMO) will convene a panel of the credit counseling industry to address problems with the Uniform Debt Management Services Act (“Uniform Act”). The panel will meet on February 19, 2007 at the Four Seasons Hotel in Austin, Texas.

The Uniform Act has become law in Delaware, Rhode Island and Utah. It is also under consideration in Colorado, Hawaii, Missouri and is expected to be introduced in an additional six to eight states this year. The Uniform Act will become effective in Utah on July 1, 2007.

The Delaware Uniform Act, which took effect on January 17, 2007 has created problems with licensing keeping the state from issuing actual licenses in favor of temporary “conditional” licenses. Similarly, the Uniform Act in Rhode Island takes effect on March 31, 2007 but the state has not yet issued applications for licensing.

“If the state issues applications in the next few weeks it is inconceivable, by any stretch of the imagination, that Rhode Island will be able to fully review and investigate dozens of lengthy applications and issue licenses by the law’s effective date of March 31st. The credit counseling industry must find immediate solutions to the current problems with the Uniform Act”, said Mark Guimond, Executive Director of the AADMO.

“The quick progress of the Uniform Act’s enactment is causing extensive compliance challenges. The states aren’t prepared for the new law and we’re being told that some of the legal requirements simply can’t be met by any agency. Before this becomes an even larger problem, all concerned parties need to find solutions together”, added Guimond.

This panel will also develop a strategy to work with the National Conference of Commissioners on Uniform State Laws (NCCUSL) to gain their approval and support of the industry’s proposal. Information about the panel may be obtained from AADMO at 281-361-2325.

About AADMO

AADMO is the largest trade association for the credit counseling and debt management industry. Nationwide, the majority of licensed and legally operating credit counseling agencies are members of AADMO.

AADMO is an industry education and advocacy organization whose mission is to promote and ensure the continued operation and viability of credit counseling and debt management organizations. AADMO provides its members and the consumer public with information about the credit and debt counseling industry.

AADMO members are consumer credit counseling agencies, debt management organizations, credit counselors, personal finance educators, credit and debt information educators, consumer lawyers and many others.

AADMO is the only trade association to have held state law compliance workshops with the New York State Banking Department and the California Department of Corporations upon enactment of their respective laws governing credit counseling and AADMO is the only trade association for the industry to publish a formal summary of state laws that has been reviewed by state regulators.

Comments are closed.