CONSUMER FEDERATION OF AMERICA AND AMERICAN EXPRESS MOVE FORWARD WITH NEW RESEARCH ON CREDIT COUNSELING
Ten Agencies to Take Part in Study of Effectiveness of Various Counseling Approaches
WASHINGTON and NEW YORK, July 26, 2005 -- A leading national consumer organization and major credit card issuer today announced that ten credit counseling agencies from throughout the country had received grants totaling $250,000 to participate in a study evaluating the impact of counseling and personal financial education programs for financially troubled consumers. The study will be directed by the Consumer Federation of America and American Express, and administered by Dr. Michael Staten at the Georgetown University Credit Research Center.
“Credit counseling can help consumers in debt trouble work their way back to financial solvency if it is done properly by a reputable agency,” said Travis B. Plunkett, legislative director of the Consumer Federation of America. “The purpose of this study is to provide consumers, credit counseling agencies and creditors with more information about what works and what doesn't in credit counseling.”
The study will analyze how various approaches to credit counseling affect the finances of consumers who seek assistance. This will include an evaluation of three primary methods used by agencies to offer credit counseling -- in-person interviews, telephone and internet contact -- as well as different approaches to the timing, duration and content of counseling.
The study will take a minimum of two years to complete, with interim findings expected to be available by the end of this year. As part of the research protocol, consumer privacy is being strictly protected. No personally identifiable information of any kind about consumers' finances will be provided to researchers.
“American Express has a long history of supporting high-quality credit counseling,” said Anand Joshi, Vice President, Collection Strategy, American Express. “This study will be an invaluable tool in determining which credit counseling approaches are most effective in helping consumers work their way out of debt.”
The agencies that are participating in the study include: Auriton Solutions of Roseville, Minnesota; ClearPoint Financial Solutions, Inc. of Richmond, Virginia; Consumer Credit Counseling Service of Greater Atlanta, Inc.; Consumer Credit Counseling Service of Los Angeles; Consumer Credit Counseling Service of Montana; Consumer Credit Counseling Service of North Central Texas, Inc.; InCharge Debt Solutions of Orlando, Florida; LSS Financial Counseling Service of Duluth, Minnesota; Novadebt of Freehold, New Jersey; and Money Management International of Houston, Texas.
Consumer Federation of America (CFA) is a non-profit association of some 300 pro-consumer groups that was founded in 1968 to advance the consumer interest through advocacy, research and education. More information can be found at www.consumerfed.org.
American Express Company is a diversified worldwide travel, network and financial services provider founded in 1850. It is a world leader in charge and credit cards, Travelers Cheques, travel, financial planning, investment products, insurance and international banking.
