Consumer Group Warns of BK Explosion if States and Congress Do Not Change Credit Counseling Laws SOURCE: American Bankruptcy Institute Consumers for Responsible Credit Solutions (CRCS), warned in a press release today that there could be an explosion in the number of Bankruptcies filed unless States or Congress change the laws regulating the credit counseling industry. Without access to the services provided by the nation’s credit counseling agencies hundreds of thousands of consumers would have little choice but to declare Bankruptcy, and already rising Bankruptcy rates would explode, said CRCS. But access to those services may soon not be available in the majority of States unless the laws are changed. Currently a majority of States have laws that either ban individuals or taxpaying businesses from providing credit counseling, or which in practice restrict credit counseling services exclusively to tax-exempt organizations. The practice of creditor funding and control of credit counseling agencies has been criticized for decades, most recently in a report published by CRCS, which argues that creditor-controlled agencies typically serve the interests of creditors and profits more than consumers. The report also points out that tax-exempt agencies are, by law, not only exempt from paying taxes but also from basic State and Federal oversight and regulation. Now, a recently released internal IRS memo indicates the Service is preparing a case for revoking the tax-exempt status of large numbers of credit counseling agencies, including traditionally creditor-funded agencies that serve primarily as debt collectors. Should the IRS revoke the tax-exempt status of credit counseling agencies that serve primarily as debt collectors, one or two things would have to happen: (1) Agencies would have to divorce themselves from creditors and creditor funding; or (2) Agencies would have to operate as taxpaying businesses CRCS Executive Director Darrell McKigney said “unless current laws are changed, such an IRS ruling could create a Bankruptcy explosion. Right now, a majority of states effectively prohibit taxpaying financial services providers from helping consumers with credit counseling services. In addition, to maintain their control over the industry, many of the nation's largest creditors refuse to support independent, taxpaying agencies. As a result, in many states there are virtually no taxpaying credit counseling agencies in existence for consumers to turn to at this time.”

In the Never Ending Quest for Fees, Finally Some Relief ... Higgins v. Vortex Fishing Sys., Inc. U.S. 9th Circuit Court of Appeals (08/11/04 - No. 03-15487)

Appellate Court held that Bankruptcy Court's decision awarding trial and appellate Attorney's Fees after dismissal of Plaintiff's failed Petition for Involuntary Chapter 7 was proper with respect to fees related to the initial litigation, but awarding fees associated with subsequent Appeals was abuse of discretion.

DCBA BK Committee Member Kathryn L. Harry suggests: How about a seminar this year on adversary proceedings in general, dischargeability of taxes or authority/power of Trustee in a Chapter 7 case? Any thoughts from the Members?

Judge Insists on Electronic Filing -- or Else! Kate Coscarelli - Star-Ledger Staff After a bruising 20-minute hearing before a Federal Bankruptcy Judge, a West New York Attorney agreed yesterday to learn how to file cases electronically or face sanctions. During a hearing in his Newark courtroom, Judge Morris Stern laced into Tomas Espinosa, who refused to follow rules requiring that matters be filed electronically. He has filed 80 matters since last year. "This is a tremendous burden on the Bankruptcy Court," the Judge said. "These are all matters that weigh on the Clerk's office at a time when the Federal budget for the judiciary is being cut, and we just can't do it." Earlier this month, Espinosa became the first Attorney in New Jersey called to Court to answer why he wasn't following the new rules. At yesterday's hearing, Espinosa said he had signed up for training for early September. "I appreciate that it is difficult in a smaller practice to mechanize, but on the other hand, it can only be to the benefit of your clients," Stern said. ________________________________________________________ FTC Blows Whistle on Consumer-Credit Scams Eileen Alt Powell - Associated Press It should not be surprising consumer credit is ripe for fraud, considering the big part it plays in Americans' lives. A new survey by the Federal Trade Commission in Washington found that three of the top four scams perpetrated on consumers involved credit. The most frequently reported fraud involved advance-fee loan scams, in which a telemarketer or mass mailer promises a consumer a credit card or loan in exchange for an upfront cash payment. Consumers who pay the money generally get nothing for it. Other credit-related scams include selling credit card insurance for hefty fees, even though federal law limits a consumer's credit card fraud liability to a maximum of $50; and promising to repair a consumer's credit record by getting information removed from their credit report or setting up a new one. "Those carrying a lot of debt are the ones most likely to respond to these frauds," said Pauline Ippolito, associate director of the FTC's economics bureau.

BRESSNER v. AMBROZIAK, No. 03-2768 7th Cir. August 13, 2004 Plaintiff's appeal, challenging dismissal of his suit to collect a debt owed to him by defendant, is dismissed where the District Court did not err in dismissing plaintiff's claims for violations of the RICO Act, civil conspiracy, and the Illinois Uniform Fraudulent Transfer Act.

Debtor's Obligation to IRS Not Excepted from Discharge Despite Claim He Conveyed His Interest in Home to WifeIn re Petersen (N.D.Iowa 2004) Debtor transferred his interest in the couple's residence to his wife, yet continued to occupy and enjoy the benefits of ownership in the property. His right to occupy the property was not listed as an asset. The Bankruptcy court found no intent to deceive or conceal and no fraudulent intent in transferrring the interest. Accordingly, taxes were not excepted from discharge. ___________________ Expense for Cigarettes Not Grounds to Deny Chapter 13 Plan In re Woodman (1st Cir. 2004) Evergreen Credit Union, an undersecured creditor, appeals from the decision of the District Court upholding the Bankruptcy Court's confirmation of Debtor Clare A. Woodman's First Amended Chapter 13 Plan ("Plan"). Evergreen objected to confirmation of the Plan on the ground that it did not meet the requirement set forth in §1325(b) that Debtors devote all their "disposable income" to their plans for at least 3-years. In particular, Evergreen claimed that Woodman's monthly purchases of cigarettes, amounting to $136.00, were not "reasonably necessary" expenses within the meaning of §1325(b)(2)(A) and argued that §1325(b) required the exclusion of Woodman's cigarette expenditures from the calculation of her reasonably necessary expenses, thereby increasing her projected disposable income and consequently the amount that she would be required to pay each month into the Plan. The Bankruptcy Court, in a thoughtful rescript, overruled Evergreen's objection to confirmation. SEE In re Woodman, 287 B.R. 589, 596 (Bankr. D. Me. 2003). Evergreen appealed and the District Court affirmed, as did the Appellate Court, adhering to the long-standing rule that arguments not squarely presented below may not be advanced for the first time on appeal. (Ed. Note: in this opinion the 1st Cir. did not address the issue of cigarette expense on the merits, but held that the issue was forfeit because it was not properly raised at the District Court level. However, the Appellate Court did appear to acknowledge that a Debtor in a Chapter 13 could include in the budget "basic needs including a reasonable cushion for recreation and exigencies.") ______________________ Debtor "Forgets" to Disclose Interest in Corporations In re Moschella (Bankr. N.D. Tex. 2004) Six or more careless mistakes in a consumer Debtor's Schedules will generally warrant denial of discharge under §727. Since the Court believes that many Schedules contain such errors, the Court expects Trustees and the UST to be much more active in policing the issuance of discharges. The UST complained of the omission from the Debtor’s Schedules of certain real estate, a GMC Yukon, and a Ford truck (the lien on which Debtor reaffirmed), as well as equity interests in at least 8 corporations. Among misstatements in the Statement of Affairs were the Debtor's income, equity interests and positions as an Officer and Director in the 8 or more corporations. There can be no question about the materiality of these omissions. The judicial standard of materiality is an easy one to meet. As the Court of Appeals for the Fifth Circuit stated in Beaubouef (966 F.2d at 178), quoting COLLIER ON BANKRUPTCY: The subject matter of a false oath is ‘material’ . . . if it bears a relationship to the Debtor's business transactions or Estate, or concerns the discovery of assets, business dealings, or the existence and disposition of property. Value is immaterial. Though a failure to give proper value to an item may itself constitute a false statement, and the Debtor’s views of value are to be scrutinized critically (Mitchell, slip. op. at 3), the fact that the omission was of an asset without value does not make the omission "immaterial." ______________________ Failure to Maintain Adequate Records Results in Denial of Discharge In re Schifano (1st Cir. 2004) Because the Debtor is often the gatekeeper to any incriminating evidence, the Bankruptcy Code will avoid a discharge if a Debtor fails to maintain adequate records to reasonably ascertain his financial condition, according to §727(a)(3). Complete disclosure is in every case a condition precedent to the granting of a discharge, and if such a disclosure is not possible without the keeping of books or records then the absence of those records amounts to grounds for denial of discharge. A Debtor's decision to not maintain a bank acocunt to avoid creditor action can also constitute grounds for denial of discharge for failure to maintian records.

Debtor and Lawyer Charged with Bankruptcy Fraud Reuters A Danville, California man and his Bankruptcy Attorney have been indicted by a Federal Grand Jury on one count of mail fraud, one count of conspiracy, one count of Bankruptcy fraud and one count of concealment of assets. The U.S. Attorney's Office for the Northern District of California announced the indictments Monday. According to the indictment, Arnold Stewart, 54, of Danville and his Bankruptcy Attorney, Gregory S. Lyons, 49, of Orinda, allegedly took part in a scheme to prevent certain creditors from obtaining and recording a judgment lien on Stewart's property in Mendota. While Stewart was in Bankruptcy, the men allegedly "entered into coal-mining investment encumbering the Mendota property" but never disclosed that fact to the Creditors, the Bankruptcy Court or the Trustee, according to a statement released by the U.S. Department of Justice. Instead, they led creditors to believe they were following the order of the Bankruptcy Court to sell the land and pay the proceeds to creditors. When it appeared that some creditors had learned of the scheme, the Defendants attempted to conceal the fraud by dismissing the Bankruptcy case, according to the Department of Justice. _________________________ CEO Compensation Continues to Rise Even As Employees Languish in Debt Reuters The median compensation for Chief Executives at the largest U.S. companies rose to $4.6 million last year, up from a median $3.6 million in 2002, according to the latest pay survey by the Corporate Library. The 27% climb in overall pay -- base salary, bonus, options proceeds, restricted stock awards and long-term incentive plans -- exceeds the 11.5% rise in 2002 over 2001. “I am surprised at the strength of the growth in the annual compensation,” said Paul Hodgson, author of the 2003 CEO pay report. Driving the gains were restricted stock awards. The 2003 median value for these awards was nearly $2 million, up from $1.46 million in 2002. Last year, 116 CEOs received restricted stock awards, up from 99 in 2002.

Debt Counselors May Lose Tax Exempt Status By CAROLINE E. MAYER Washington Post The Chief Counsel for the Internal Revenue Service has concluded that many credit-counseling agencies do not meet the requirements to be tax-exempt organizations, setting the stage for revocation of their special tax status. In an internal advice memo issued recently, the Chief Counsel's office said "it can and should be argued that the new generation of credit-counseling organizations does not meet the criteria for exemption." Laying out its legal analysis of credit-counseling agencies, the memo said: "They are not providing any meaningful education or relief of the poor," as would be required for the tax exemptions many are currently receiving." The memo, available on the IRS Web site, said that many of the nonprofit organizations may also be violating tax-exemption laws because they are being operated for the private benefit of their executives. The memo comes as the IRS is auditing 50 credit-counseling agencies accounting for about half the revenue of the $1 billion nonprofit industry. The audits were prompted by consumer complaints about deceptive and fraudulent marketing practices. Congress has also held hearings into allegations that many of the newer credit-counseling firms have turned what was once a social service-oriented industry into a profit-driven business that charges consumers high fees to the benefit of founders who siphon off cash through for-profit affiliates that they also control.

FAILURE TO DISCLOSE POTENTIAL CONFLICT OF INTEREST DOES NOT AUTOMATICALLY RESULT IN DISQUALIFICATION OF COUNSEL IN RE NORTHWESTERN CORPORATION, (Del. 2004) Inadequate disclosure does not mandate disqualification of Counsel. The appropriate remedy is left to the broad discretion of the Court. See, e.g., In re Best Craft Gen. Contractor and Design Cabinet, Inc., 239 B.R. 462 (Bankr. E.D.N.Y. 1999). In this case, the disclosure was made at the outset of the case to the United States Trustee and formal disclosure was later made. Also, as noted, the prior disclosure to the United States Trustee is indicative of a lack of intent to conceal. Further, as discussed in the next session, this is not a case where full disclosure would have revealed an actual conflict. Rather, full disclosure would have alerted all parties to facts that should have been known but which, in the end, do not bear upon Paul Hastings' qualification to serve as Counsel. For these reasons, the Court will not now disqualify Paul Hastings for its previous failure to disclose. _____________________ DEBTOR'S PREPETITION DEPOSIT FOR KIDS COLLEGE TUITION IS NOT PROPERTY OF THE ESTATEIn re Cheatham (Bkrtcy.MD 2004) Alabama Debtors invested $14,636 in their son's and daughter's prepaid tuition program. Because the payments were characterized as "prepaid" tuition, the funds belonged to the children, not the Debtors when the Debtors filed Bankruptcy. _____________________ COURT INVALIDATES DEBTORS' MORTGAGE FOR TILA VIOLATION; DEBTOR MAY PAY LOAN THROUGH CHAPTER 13 PLAN In re Bell, Bell v. Parkway Mortage (Bkrtcy.E.D.Pa. 2004) Truth In Lending Act, 15 USC § 1601 et seq. Debtors allowed to rescind their mortgage under the Truth in Lending Act for alleged prepetition predatory lending practices. The Debtors may repay the remaining allowed unsecured claim owed to the lender through their Plan. The Court found that the Debtor is entitled to rescind the loan because she was not given notice of her right to rescind as required by the Truth in Lending Act. Debtor was also awarded damages and Attorney's Fees for violations of that Act as well as other statutes. ______________________ ATTY MUST DISGORGE CHAPTER 7 FEES PAID BY HIS CHAPTER 13 CLIENTLewis v. Mozelle S. (Bkrtcy.N.D.Okla. 2004) Chapter 13 Debtor was mother of a daughter and son-in-law in Chapter 7. The Mother paid Attorney the fees for their Chapter 7. Attorney failed to disclose receipt and source of payment of the Chapter 7 fees. Attorney must disgorge the undisclosed fees.

COUPLE INDICTED FOR BANKRUPTCY FRAUD Jordana Mishory, The Arizona Republic SCOTTSDALE - The U.S. Attorney's Office indicted a local couple on charges of Bankruptcy fraud, alleging that they used the money they owed to purchase a $305,000 Scottsdale home. The indictment alleges that Andrew Taylor, 50, and his wife Sandee, 44, filed 5 voluntary Bankruptcy Petitions over a 6-year period with no intention of repaying the money they owed. According to Sandy Raynor, spokesperson for the U.S. Attorney's Office in Phoenix, the couple failed to disclose they had previously filed Bankruptcy or to reveal some of their assets such as bank accounts and title to an aircraft. The Taylors are also indicted on charges of concealment of assets and false declarations in a Bankruptcy proceeding. The Internal Revenue Service was one of their creditors and conducted the investigation with the assistance of the Office of the U.S. Bankruptcy Trustee. _____________________ CREDIT CARD SOLICITATIONS SHARE BLAME FOR MIDDLE CLASS BANKRUPTCY Suein Hwang, Staff Reporter, THE WALL STREET JOURNAL Last year there were more than 1.6 million Bankruptcy filings, compared with 875,000 a decade earlier. Some experts say much of the increase is being driven by older people, many of whom have decades of work experience in white-collar jobs. The Consumer Bankruptcy Project, which surveyed 2,400 filers in 2001 and 1991, found that on a per capita basis older people are now the most likely to file. In 2001, for instance, per capita filings of individuals ages 45 to 54 increased 58% to 11 per thousand. "The curve is moving to the right," says Elizabeth Warren, a professor at Harvard University Law School, who co-authored the study. "It reflects a more frightening reality for a wide swath of middle-class America." Many of today's Bankrupt baby boomers simply weren't as frugal as their Depression-era parents. But the increase in middle-age people filing for Bankruptcy is also attributed to soaring medical costs, an unstable job market and years of aggressive credit-card marketing. The number of credit-card solicitations in the U.S. grew to 4.29 billion in 2003, from 1.52 billion a decade earlier, according to Chicago research-firm Synovate Inc.'s Mail Monitor service. Last year, Federal Reserve data showed total revolving consumer debt at more than $734.1 billion, compared with $238.6 billion in 1990. Ben B. Floyd, a personal-Bankruptcy Trustee in Houston for the past 30 years says he is now seeing people "who obviously had a white-collar background. They come in looking lost." Personal-Bankruptcy lawyers across the country say they've witnessed a sea change in their practices, seeing older clients with longer work histories. "These people didn't take their credit cards to Atlantic City," says Gabriel Del Virginia, a New York bankruptcy Attorney. "It's largely because people lost their jobs or had a catastrophic illness." ___________________ CONSUMER SPENDING SEES BIG DROP Washington Post WASHINGTON - American consumer spending dropped 0.7 percent in June, the steepest monthly fall since September 2001, the government reported Tuesday. With income growth stalling as well, the numbers raised new concerns about the strength of the economic expansion. Overall personal income — which includes wages, salaries and income from dividends, interest, rents, self-employment and other sources — rose by 0.2 percent in June, the slowest monthly increase in more than a year, the Commerce Department reported. But personal income was flat after adjusting for inflation and taxes, the report showed. Wages and salaries fell after adjusting for inflation.

House Committee Examines "Exhorbitant" Fees in Large BK Cases The House Judiciary Committee’s Commercial and Administrative Law Subcommittee scheduled an oversight hearing on July 21, 2004 regarding the administration of large business Bankruptcy reorganizations, focusing on whether compensation for big cases has corrupted the Bankruptcy system. The select witness panel for the hearing included - * Roberta A. DeAngelis, acting US Trustee Region 3 (which includes Delaware); * Prof. Lynn LoPucki, Professor of Law at UCLA; and * Lester Brickman, Benjamin Cardozo Law School (not being called as a Bankruptcy expert but as someone with expertise on conflicts of interest). SOURCE: CLLA Washington

CONSUMER SPENDING DIVES SHARPLY IN JUNE According to Reuters, a recent government report showed that U.S. consumer spending took a much deeper dive than expected in June amid slowing income growth as shoppers cut back on purchases of expensive items like autos. The Commerce Department said that personal spending dropped 0.7% in June (0.9% adjusted for inflation) after climbing 1% in May, while incomes rose only 0.2%, a slowdown from May's 0.6% gain. Wall Street economists had forecast a 0.1% drop in spending with incomes to rise 0.2%. Many economists have expressed confidence that the soft spot for spending has already been left behind.

Focus Media, Inc. v. National Broadcasting Co. (08/02/04 - No. 03-55808) U.S. 9th Circuit Court of Appeals Plaintiff-Debtor unsuccessfully challenged the Bankruptcy Court's orders granting summary judgment for Defendant where it did not create a triable issue of fact regarding whether defendant's claims were subject to a bona fide dispute and whether Plaintiff was generally paying debts as they became due.

STUDENTS MAXING OUT CREDIT CARDS Workout Wire (NationalMortgageNews.com) According to the Customer Federation of America (Wash., D.C.), aggressive credit card marketing, lack of financial education and peer pressure is causing increasing debt among teenagers and college students. Over the last 5 years credit card marketing has shifted from young professionals to college freshmen and high school seniors. It is estimated that 80% of young people between 18 and 20 are cardholders, according to a George Mason University survey. The survey also found that about 60% of those "maxed out" during their freshman year. ______________________ FAIR CREDIT REPORTING ACT: FAILING TO COMPLY CAN BE COSTLY Lisa Stephanian Burton, Martindale.com In a recent consent decree, Imperial Palace, Inc. agreed to pay $325,000 in civil penalties to settle alleged Fair Credit Reporting Act (FCRA) charges against 2 of its casinos by the Federal Trade Commission (FTC). The consent decree also included a permanent injunction preventing Imperial Palace from failing to provide the required notices regarding adverse actions under the FCRA. ______________________ U.S TRUSTEE CITES “BANKRUPTCY MILL” ABUSE The U.S. Trustee Program says Bankruptcy mills (high-volume practices) are an increasing problem. The program filed 243 actions in Fiscal Year 2002 for Attorney misconduct, up 62% from the year before. Actions against Bankruptcy Petition Preparers rose 43%, to 1,150. Among the cases were the following: * A Bankruptcy-Petition Preparer in Woodland Hills, California advertised $99 bankruptcies, only to use high-pressure sales tactics on low-income elderly and disabled clients to boost the fee to $650. * A Bankruptcy-Petition Preparer in Alexandria, Virginia called himself a “foreclosure specialist” and charged up to $3,500 for services, which included trying to buy the Clients’ homes at below-market prices and renting the property back to the owners. * An Oklahoma City Attorney repeatedly failed to appear for Bankruptcy hearings, in one case forcing a disabled Client to make a 280-mile journey to attend a rescheduled meeting. * A Denver Attorney in at least 5 cases redeemed his Clients’ property from foreclosure proceedings, reselling the property each time for a profit of up to $50,000. * In Los Angeles, the U.S. Trustee last year forced Attorney Claudia Phillips to sell her practice as part of a settlement agreement after she repeatedly failed to meet with Clients or represent them adequately in Court. Court papers said Phillips allowed others to forge her signature and those of her Clients on documents, adding that her husband, Kenneth, who was not a Lawyer, actually ran the practice and offered legal advice.

STUDENT LOAN DISCHARGED: HEALTH A KEY FACTOR Durrani v. ECMC (Bankr. N.D. Il. 2004) Held: Debtor satisfied all 3 elements of the Brunner test and her student loan was discharged pursuant to §523(a)(8). Availability of income-contingent repayment plan did not preclude finding of undue hardship. Durrani suffers from diabetes, high blood pressure, high cholesterol, poor vision and osteoarthritis in one knee. She has a permanent handicapped parking placard from the Illinois Secretary of State. Durrani has consistently tithed to her congregation for over 20 years. In 2001, she tithed $1,706 and made additional offerings of $42. In 2002, she tithed $1,967 and made additional offerings of $37. Through May 18, 2003, she tithed $1,105 and made additional offerings of $23. The issues resolved in the proceeding were: 1. Whether, based on current income and expenses, Durrani could maintain a “minimal” standard of living for herself if forced to repay the loan; 2. Whether additional circumstances existed indicating that the prevailing state of affairs was likely to persist for a significant portion of the repayment period of the loan; and 3. Whether Durrani made good faith efforts to repay the loan. _______________________ TRUSTEE'S ATTORNEY CLAIMS $19K IN FEES TO COLLECT $14K IN FUNDS In re STRAND (9th Cir. 2004) Bruce Leichty, in his capacity as Counsel for a Chapter 7 Trustee, appealed the Bankruptcy Court’s order which, §330, awarded only 1/2 the compensation he requested in his final Fee Application. The Bankruptcy Court did not award the full amount requested because it concluded that Leichty pursued litigation that was not reasonable or necessary in its entirety. Held: The Bankruptcy Court did not abuse its discretion in making this determination. Decision: It is readily apparent that if the legal fees exceed the recovery, the Estate is not benefitted. Even if the potential for recovering Attorneys' Fees is included, incurring $19,065 in legal fees in exchange for the uncertain prospect of recovering $14,000 for a priority creditor holding a nondischargeable debt could reasonably be characterized as a “modest” benefit to the Estate.

U.S. HEADED FOR NEW BANKRUPTCY FILING RECORDMary Deibel, Scripps Howard News Service Americans are going broke as never before: A record 1,625,208 families sought bankruptcy protection last year, and filings are up 2.7 percent so far in 2004. 1 in 73 households declared Bankruptcy in 2003, numbers that make it likely you have a neighbor, co-worker or family member who was, is,or is about to go bankrupt. Experts Elizabeth Warren and Amelia Warren Tyagi expect more families to see Bankruptcy Court than Divorce Court this year. Americans hold $8.9 trillion collectively in household debt, a record compared to their disposable income.

CONSUMERS WARNED ABOUT CCCS WASHINGTON, July 12 /PRNewswire A national advocacy group, Consumers for Responsible Credit Solutions, released an 80-page report recently carrying serious warnings for consumers about the nation's best known chain of credit counseling agencies, Consumer Credit Counseling Services (CCCS). Some of the many creditors who have been represented on the NFCC Board of Trustees have recently paid hundreds of millions of dollars in Federal Trade Commission fines and other settlements for anti-consumer practices and abusing consumers' rights. The report argues the best way to make the credit counseling industry more favorable to consumers is to reduce the direct influence and control of creditors and encourage the growth of independent, non-NFCC credit counseling agencies. The report finds two factors have particularly enabled problems to arise: a lack of national regulatory standards; and mandates that credit counseling agencies be "nonprofit," which exempts them from most State and Federal regulation. This has left an industry that handles billions of dollars in consumer payments largely unregulated. The report recommends establishing national standards and opening the industry to professional financial services businesses that already serve consumers and are already subject to regulatory scrutiny. Consumers looking to better understand the NFCC and the industry are urged to read the report entitled: "Nonprofits In Service to One of America's Most Profitable Industries: A Report On How Creditor Control of the Credit Counseling Industry Hurts Consumers and The Need For Fundamental Reform." Copies are available at: http://www.responsiblecredit.com