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Arizona Debt Management
Bankruptcy and credit report statistics show that Arizona is one of the most debt-laden states in the country. Due to this fact, many debt consolidation companies and consumer credit counseling services have begun advertising here. Unfortunately, many consumers are not familiar with what types of debt management are offered and how to differentiate between reputable companies and those that are merely out to collect their fees. The purpose of this article is to clarify what forms of credit card debt consolidation are currently being offered by these companies, as well as what laws in Arizona are in place to protect consumers from “bad actors” within the industry.
(Note: the following is for education purposes only and PayingPaul.Com makes no guarantees about the accuracy of anything contained herein. It is not complete and may not be up to date. For legal advice please consult with a lawyer licensed in Arizona.)
Debt Consolidation Services in Arizona
Generally there are two sorts of debt consolidation companies – credit counseling and debt settlement. Credit counseling is the oldest form of debt consolidation and is often administered by non profit debt companies. If your situation permits, a credit counselor may enroll in you in a debt management plan. That is, they will work on your behalf to reorganize your debt and reduce interest payments, which in turn can help lower your payments and the time it takes to be debt free. It should be noted that although many of these agencies are non-profit, that does not mean their services are free, nor does it ensure that they are legitimate.
Debt settlement, also known as debt negotiation, is a process that aims at lowering the amount you actually owe on unsecured bills, not just the interest. It’s widely considered the fastest way to get out of debt other than bankruptcy, but it does not come without its disadvantages. In a settlement program, a client stops paying their creditors and saves money into a separate bank account each month. Once sufficient funds have accumulated, then the company will contact the creditor and negotiate to get them to accept a lump sum, sometimes for significantly less than what the person owes, to completely fulfill the obligation.
To speak with a pre-qualified debt advisor, submit a form today!
Arizona Consumer Credit Counseling Info
To protect Arizona consumers from unscrupulous debt counselors, legislators passed a set of laws regulating the activities of debt management providers. According to Title 6, Chapter 7 of the Arizona Revised State Statutes, a debt management company is defined as “corporation, company, firm, partnership, association or society, as well as a natural person, that for compensation engages in the business of receiving money, or evidences thereof, in this state or from a resident of this state as agent of a debtor for the purpose of distributing the same to his creditors in payment or partial payment of his obligations.”
It is within the best interests of a consumer to study the contract provided by the credit counseling organization in hopes of determining how reputable the service is. According to Arizona law, a debt management company must abide by the following provisions:
(1) A written contract must be made between the debt management company and the client. The contract must include a list of the client’s creditors at the time of the signing of the contract who are to be included in the credit counseling plan. The contract must also include a provision that allows for the termination of the contract at any time WITHOUT PENALTY (except that the retainer fee is non-refundable). Finally, the fees must be clearly stated in the contract and agreed upon in advance.
Fees
Debt management companies cannot exceed the following fee limits:
a) a retainer fee of $39
b) the lesser of ¾% of the total indebtedness or fifty dollars as a monthly maintenance fee.
There are many other requirements and prohibitions for these types of debt management companies, which can be found here:
Arizona Debt Statutes.
Exemptions
It should be noted that Arizona law exempts the following entities:
1. Attorneys at law who principal business is not debt management
2. Nonprofit corporations or nonprofit debt counselor associations that:
(a) Are bonded as provided by section 6-704.
(b) Are organized to render financial planning service or debt management service to the public.
(c) Do not collect any compensation directly or indirectly from debtors.
3. Bill payer services which do not engage in debt counseling or try to alter the payment terms of a client’s debts
List of Licensed Agencies
Alliance Credit Counseling, Inc.
American Consumer Credit Counseling, Inc.
American Debt Resources, Inc
American Debt Solutions, Inc.
American Family Credit Counseling, Inc.
2432 W. Peoria Ave., #1325
Phoenix, AZ 85029-4741
Black Hills Children's Ranch, Inc.
DBA: Pioneer Credit & Debt Consolidation Services
Cambridge Credit Counseling Corp.
CareOne Services, Inc.
ClearPoint Financial Solutions, Inc.
Consolidated Credit Counseling Services, Inc.
Consumer Alliance Processing Corporation
Consumer Credit Management, Inc.
Consumer Education Services, Inc.
Credit Advisors, Inc.
CreditGuard of America, Inc.
Debt Counseling Corp.
Family Credit Counseling Service, Inc. DBA: Family Credit Management Services
Family Financial Education Foundation
Family Life Services, Inc.
DBA: Family Life Credit Services
Family Life Services, Inc.
DBA: Family Life Credit Services
a branch of Family Life Services, Inc.
40 North Swan Road
Tucson, AZ 85711
Free In Five, LLC
DBA: Free In Five
1920 E. Broadway Rd.
Tempe, AZ 85282
Garden State Consumer Credit Counseling, Inc.
DBA: Novadebt A Garden State Consumer Credit Counseling Organization
Greenpath, Inc.
DBA: Greenpath Debt Solutions
Greenpath, Inc.
a branch of Greenpath, Inc.
401 West Baseline, Suite 206
Tempe, AZ 85283
Help Ministries Incorporated
DBA: Debt Free
1148 W. Baseline Road
Mesa, AZ 85210
Help Ministries Incorporated
DBA: Debt Free
a branch of Help Ministries Incorporated
1920 E. Broadway Rd.
Tempe, AZ 85282
InCharge Debt Solutions, Inc.
DBA: InCharge Debt Solutions
Lighthouse Credit Foundation, Inc.
Money Management International, Inc. #1
13430 North Black Canyon Hwy., Ste 250
Phoenix, AZ 85029
Money Management International Inc. #1
Money Management International, Inc. #2
DBA: Consumer Credit Counseling Services Southwest
13430 North Black Canyon Hwy., Ste 250
Phoenix, AZ 85029
Money Management International, Inc. #2 DBA: Consumer Credit Counseling Services Southwest
a branch of Money Management International, Inc. #2
1215 Gail Gardner Way, Suite B
Prescott, AZ 86305-3423
Money Management International, Inc. #2
DBA: Consumer Credit Counseling Services Southwest
a branch of Money Management International, Inc. #2
2615 N. 4th Street, Suite 2
Flagstaff, AZ 86004-3700
Money Management International, Inc. #2
DBA: Consumer Credit Counseling Services Southwest
a branch of Money Management International, Inc. #2
4732 North Oracle Road, Suite 217
Tucson, AZ 85705
Money Management International, Inc. #2
DBA: Consumer Credit Counseling Services Southwest
a branch of Money Management International, Inc. #2
2450 South Fourth Avenue, Suite 201
Yuma, AZ 85364
Money Management International, Inc. #2
DBA: Consumer Credit Counseling Services Southwest
a branch of Money Management International, Inc. #2
5515 East Grant Rd, Suite 211
Tucson, AZ 85711
Money Management International, Inc. #2
DBA: Consumer Credit Counseling Services Southwest
a branch of Money Management International, Inc. #2
950 W. Elliot Rd., Suite 122
Tempe, AZ 85284
Money Management International, Inc. #2
DBA: Consumer Credit Counseling Services Southwest
a branch of Money Management International, Inc. #2
722 East Osborn Road, Suite 210
Phoenix, AZ 85014
Money Management International, Inc. #2
DBA: Consumer Credit Counseling Services Southwest
a branch of Money Management International, Inc. #2
1717 E. Bell Rd., #7
Phoenix, AZ 85022
Money Management International, Inc. #2
DBA: Consumer Credit Counseling Services Southwest
a branch of Money Management International, Inc. #2
17235 North 75th Ave., Suite C125
Glendale, AZ 85308
Money Management International, Inc. #2
DBA: Consumer Credit Counseling Services Southwest
a branch of Money Management International, Inc. #2
1234 S. Power Rd., Suite 100
Mesa, AZ 85206-3740
National Foundation for Debt Management, Inc.
North Seattle Community College Foundation
DBA: AFS Credit Counseling
Robert S. Stearns, Inc.
969 W. Gurley Street
Prescott, AZ 86305
Springboard Nonprofit Consumer Credit Management, Inc.
Take Charge America, Inc.
20620 North 19th Avenue
Phoenix, AZ 85027-3585
Visual Credit Counseling, Inc.
1870 W. Prince Road, #39
Tucson, AZ 85705
Having Problems
Follow this form to file a complaint
Other Resources
Filing Bankruptcy in Arizona
Bankruptcy Laws in Arizona
Debt Collection in Arizona
(Note: the following is for education purposes only and PayingPaul.Com makes no guarantees about the accuracy of anything contained herein. It is not complete and may not be up to date. For legal advice please consult with a lawyer licensed in Arizona.)
Debt Consolidation Services in Arizona
Generally there are two sorts of debt consolidation companies – credit counseling and debt settlement. Credit counseling is the oldest form of debt consolidation and is often administered by non profit debt companies. If your situation permits, a credit counselor may enroll in you in a debt management plan. That is, they will work on your behalf to reorganize your debt and reduce interest payments, which in turn can help lower your payments and the time it takes to be debt free. It should be noted that although many of these agencies are non-profit, that does not mean their services are free, nor does it ensure that they are legitimate.
Debt settlement, also known as debt negotiation, is a process that aims at lowering the amount you actually owe on unsecured bills, not just the interest. It’s widely considered the fastest way to get out of debt other than bankruptcy, but it does not come without its disadvantages. In a settlement program, a client stops paying their creditors and saves money into a separate bank account each month. Once sufficient funds have accumulated, then the company will contact the creditor and negotiate to get them to accept a lump sum, sometimes for significantly less than what the person owes, to completely fulfill the obligation.
To speak with a pre-qualified debt advisor, submit a form today!
Arizona Consumer Credit Counseling Info
To protect Arizona consumers from unscrupulous debt counselors, legislators passed a set of laws regulating the activities of debt management providers. According to Title 6, Chapter 7 of the Arizona Revised State Statutes, a debt management company is defined as “corporation, company, firm, partnership, association or society, as well as a natural person, that for compensation engages in the business of receiving money, or evidences thereof, in this state or from a resident of this state as agent of a debtor for the purpose of distributing the same to his creditors in payment or partial payment of his obligations.”
It is within the best interests of a consumer to study the contract provided by the credit counseling organization in hopes of determining how reputable the service is. According to Arizona law, a debt management company must abide by the following provisions:
(1) A written contract must be made between the debt management company and the client. The contract must include a list of the client’s creditors at the time of the signing of the contract who are to be included in the credit counseling plan. The contract must also include a provision that allows for the termination of the contract at any time WITHOUT PENALTY (except that the retainer fee is non-refundable). Finally, the fees must be clearly stated in the contract and agreed upon in advance.
Fees
Debt management companies cannot exceed the following fee limits:
a) a retainer fee of $39
b) the lesser of ¾% of the total indebtedness or fifty dollars as a monthly maintenance fee.
There are many other requirements and prohibitions for these types of debt management companies, which can be found here:
Arizona Debt Statutes.
Exemptions
It should be noted that Arizona law exempts the following entities:
1. Attorneys at law who principal business is not debt management
2. Nonprofit corporations or nonprofit debt counselor associations that:
(a) Are bonded as provided by section 6-704.
(b) Are organized to render financial planning service or debt management service to the public.
(c) Do not collect any compensation directly or indirectly from debtors.
3. Bill payer services which do not engage in debt counseling or try to alter the payment terms of a client’s debts
List of Licensed Agencies
Alliance Credit Counseling, Inc.
American Consumer Credit Counseling, Inc.
American Debt Resources, Inc
American Debt Solutions, Inc.
American Family Credit Counseling, Inc.
2432 W. Peoria Ave., #1325
Phoenix, AZ 85029-4741
Black Hills Children's Ranch, Inc.
DBA: Pioneer Credit & Debt Consolidation Services
Cambridge Credit Counseling Corp.
CareOne Services, Inc.
ClearPoint Financial Solutions, Inc.
Consolidated Credit Counseling Services, Inc.
Consumer Alliance Processing Corporation
Consumer Credit Management, Inc.
Consumer Education Services, Inc.
Credit Advisors, Inc.
CreditGuard of America, Inc.
Debt Counseling Corp.
Family Credit Counseling Service, Inc. DBA: Family Credit Management Services
Family Financial Education Foundation
Family Life Services, Inc.
DBA: Family Life Credit Services
Family Life Services, Inc.
DBA: Family Life Credit Services
a branch of Family Life Services, Inc.
40 North Swan Road
Tucson, AZ 85711
Free In Five, LLC
DBA: Free In Five
1920 E. Broadway Rd.
Tempe, AZ 85282
Garden State Consumer Credit Counseling, Inc.
DBA: Novadebt A Garden State Consumer Credit Counseling Organization
Greenpath, Inc.
DBA: Greenpath Debt Solutions
Greenpath, Inc.
a branch of Greenpath, Inc.
401 West Baseline, Suite 206
Tempe, AZ 85283
Help Ministries Incorporated
DBA: Debt Free
1148 W. Baseline Road
Mesa, AZ 85210
Help Ministries Incorporated
DBA: Debt Free
a branch of Help Ministries Incorporated
1920 E. Broadway Rd.
Tempe, AZ 85282
InCharge Debt Solutions, Inc.
DBA: InCharge Debt Solutions
Lighthouse Credit Foundation, Inc.
Money Management International, Inc. #1
13430 North Black Canyon Hwy., Ste 250
Phoenix, AZ 85029
Money Management International Inc. #1
Money Management International, Inc. #2
DBA: Consumer Credit Counseling Services Southwest
13430 North Black Canyon Hwy., Ste 250
Phoenix, AZ 85029
Money Management International, Inc. #2 DBA: Consumer Credit Counseling Services Southwest
a branch of Money Management International, Inc. #2
1215 Gail Gardner Way, Suite B
Prescott, AZ 86305-3423
Money Management International, Inc. #2
DBA: Consumer Credit Counseling Services Southwest
a branch of Money Management International, Inc. #2
2615 N. 4th Street, Suite 2
Flagstaff, AZ 86004-3700
Money Management International, Inc. #2
DBA: Consumer Credit Counseling Services Southwest
a branch of Money Management International, Inc. #2
4732 North Oracle Road, Suite 217
Tucson, AZ 85705
Money Management International, Inc. #2
DBA: Consumer Credit Counseling Services Southwest
a branch of Money Management International, Inc. #2
2450 South Fourth Avenue, Suite 201
Yuma, AZ 85364
Money Management International, Inc. #2
DBA: Consumer Credit Counseling Services Southwest
a branch of Money Management International, Inc. #2
5515 East Grant Rd, Suite 211
Tucson, AZ 85711
Money Management International, Inc. #2
DBA: Consumer Credit Counseling Services Southwest
a branch of Money Management International, Inc. #2
950 W. Elliot Rd., Suite 122
Tempe, AZ 85284
Money Management International, Inc. #2
DBA: Consumer Credit Counseling Services Southwest
a branch of Money Management International, Inc. #2
722 East Osborn Road, Suite 210
Phoenix, AZ 85014
Money Management International, Inc. #2
DBA: Consumer Credit Counseling Services Southwest
a branch of Money Management International, Inc. #2
1717 E. Bell Rd., #7
Phoenix, AZ 85022
Money Management International, Inc. #2
DBA: Consumer Credit Counseling Services Southwest
a branch of Money Management International, Inc. #2
17235 North 75th Ave., Suite C125
Glendale, AZ 85308
Money Management International, Inc. #2
DBA: Consumer Credit Counseling Services Southwest
a branch of Money Management International, Inc. #2
1234 S. Power Rd., Suite 100
Mesa, AZ 85206-3740
National Foundation for Debt Management, Inc.
North Seattle Community College Foundation
DBA: AFS Credit Counseling
Robert S. Stearns, Inc.
969 W. Gurley Street
Prescott, AZ 86305
Springboard Nonprofit Consumer Credit Management, Inc.
Take Charge America, Inc.
20620 North 19th Avenue
Phoenix, AZ 85027-3585
Visual Credit Counseling, Inc.
1870 W. Prince Road, #39
Tucson, AZ 85705
Having Problems
Follow this form to file a complaint
Other Resources
Filing Bankruptcy in Arizona
Bankruptcy Laws in Arizona
Debt Collection in Arizona