A recent report found that many non profit debt consolidation agencies have a reputation for charging high fees and giving bad service to the majority of their customers. A large number of non profit debt consolidation agencies offer credit counseling services that give improper advice, have deceptive practices, charge excessive fees and abuse of their non-profit status. The truth is that non profit debt consolidation agencies are a growing business and over nine million people have some contact with a consumer credit counseling agency in one form or another each year.

There are a huge number of aggressive firms masquerading as non profit debt consolidation agencies that give consumers less access to real debt counseling options and push their debt consolidation loans as the best option when it is not always the case. Many state and federal regulators have not yet uncovered the truth behind a lot of the more unscrupulous non profit debt consolidation agencies.

Of course, not all of the non profit debt consolidation agencies are a threat to consumers. Some non profit debt consolidation agencies are above-board and have pioneered consumer-friendly practices, such as flexible hours, electronic payments and easy access by phone and by Internet. However, consumer complaints against non profit debt consolidation agencies have risen sharply. One of the main issues regarding bad non profit debt consolidation agencies is deceptive and misleading practices. Some non profit debt consolidation agencies do not make consumers' payments on time, deceptively claim that fees are voluntary or do not adequately disclose fees to potential clients.

Many non profit debt consolidation agencies have excessive costs. Most non profit debt consolidation agencies charge fees to set up a Debt Management Program and to maintain it on a monthly basis where this was once a relatively cheap process. Some non profit debt consolidation agencies charge as much as a full month's consolidated payment, which is usually hundreds of dollars, simply to establish an account.

Some non profit debt consolidation agencies abuse their non profit status and are increasingly performing like profit-making enterprises. All non profit debt consolidation agencies in the industry have tax-exempt status but some of these agencies work as regular for-profit businesses with aggressive advertising and selling of Debt Management Programs and a range of related services and reap high revenues which enable them to pay their executives salaries that are much higher than average for the non-profit sector.

It is important to look very carefully at any non profit debt consolidation agencies and ask for feedback from friends or relatives if you are considering signing up for one of their programs to make sure that they really are offering you the best service.