Debt Collection Agencies, Creditor Contact One Third of Consumers Over Late Payments

COLUMBIA, MD – For many Americans, severe debt is a fact of life, one that is likely to be exacerbated by increasing interest rates. Survey results released today by Amerix, a provider of back-office processing and technology services for credit counseling agencies, show that while only 11 percent of consumers admit to being behind on their payments, 35 percent say they are contacted by creditors at least once a year regarding outstanding debt. Yet, despite being contacted by their creditors, only 9 percent of Americans have sought help from consumer credit counseling firms.

The survey findings were released on the eve on an important legislative debate over the Consumer Debt Counseling Act (CDCA) at the National Conference of Commissioners on Uniform State Laws (NCCUSL). NCCUSL members will determine whether the CDCA should limit debt counseling services to organizations with non-profit status. Such a move would eliminate a wide array of services available to residents of 26 states where for-profit debt counseling firms can operate today. It would also limit choices of all consumers nationwide who are looking to solve their debt problems. The decision made at this meeting could become a nationwide law over the next several years.

“Millions of Americans are living paycheck to paycheck. Many are afraid to face their growing debt problem. Others assume that they will not be able to pay debt down and do not take the necessary steps to address their debt issues,” said Kathleen Gurney, Ph. D. and CEO of the Financial Psychology Corporation. “Getting out of debt is never an easy process. But with the proper tools, and by changing the relationship individuals have with their money, it is within the reach of all Americans.”