The Post-Gazette's article regarding proposed legislation to regulating credit counseling ("Debt, Credit Counselors Face Scrutiny," June 1) acknowledges the need for consumer protections in the financial counseling and debt management industry.

However, it also contains many misconceptions about nontax-exempt companies providing credit counseling services, implying that these entities -- because of their tax status -- are not serving the consumers' best interest. This is simply not true.

What Pennsylvanians should be concerned about is ensuring there are adequate regulatory and legal protections in place for consumers. This bill will provide those protections

As our culture's perception of debt has shifted along with the easily availability of credit, more and more consumers are looking for assistance to help them better manage their finances and pay off their debt. However, in many states, including Pennsylvania, the credit counseling industry has literally been trapped with the same laws and regulations implemented years ago.

The fact is, Pennsylvania's law was enacted almost 70 years ago and has no regulations or requirements to protect consumers who need debt management services. The bill, sponsored by Rep. Dwight Evans, D-Philadelphia, ensures that consumers are protected from predatory or unethical organizations.

Pennsylvania's consumers deserve a law that caps the fees they pay for debt management services, ensures agencies are licensed and bonded to do business, and perhaps most importantly, requires a written, documented plan to help guide them back to financial security. These safeguards do not exist in Pennsylvania today. In a well-regulated environment, an organization's tax status should not matter.

MARK GUIMOND,
Executive Director,
American Association of Debt Management Organizations