Part of the Credit Counseling Hub: This post is one piece of my complete Credit Counseling: The Complete Guide — what a DMP costs, who it helps, the agency financial stability risk, and how to verify any agency before enrolling.
Quick Answer: Consumer Debt Counselors is a nonprofit 501(c)(3) credit counseling agency. To evaluate whether they’re right for you, I’d encourage you to check their complaint history with the CFPB, read their reviews, and review their publicly filed IRS Form 990. Here’s how to do each of those.
Before You Read This: I want to be upfront about what this page is and isn’t. I’m not an investment advisor, and I’m not rendering a verdict on Consumer Debt Counselors. This is a research guide — I’m showing you where to look so you can reach your own conclusions based on current information.
If you find something in the public record that concerns you, post it in the comments below. If you’re evaluating their contract, use my free Contract Decoder tool.
If you represent Consumer Debt Counselors and something here is inaccurate, contact me and I’ll review it promptly.
If you have inside information you feel you need to share with me privately: don’t. Whatever you want to share should be posted in the comments — by you, with your name attached. I’m not willing to be anyone’s conduit for information they won’t stand behind themselves.
The most valuable thing on this page may not be what I’ve written — it’s the comments section below. People who’ve actually worked with Consumer Debt Counselors share their experiences there. I’d encourage you to read them and add your own.
Who Is Consumer Debt Counselors?
An educated consumer is our best customer.— Sy Syms
New here? My Ultimate Consumer Guide to Checking Out a Debt Relief Company walks through how to vet any debt relief company before you sign anything.
Consumer Debt Counselors is a nonprofit 501(c)(3) credit counseling agency. Rather than repeat what they say about themselves here, I’d encourage you to read their own website and IRS Form 990 filings — that way you’re seeing it directly from primary sources, not filtered through me.
Step 1: Check Their Credentials
Before anything else, verify they have the credentials they claim. Here’s what to check:
- NFCC Membership: The National Foundation for Credit Counseling member directory lists accredited nonprofit credit counselors. Verify Consumer Debt Counselors is listed there.
- COA Accreditation: The Council on Accreditation sets standards for nonprofit human service organizations. Check whether Consumer Debt Counselors holds COA accreditation.
- BBB Profile: Review their Better Business Bureau profile — look at the rating, years in business, and especially the complaint history and how they responded.
- State Licensing (NMLS): Credit counseling agencies that offer debt management plans must often be licensed in each state they operate. Check NMLS Consumer Access to verify licensing in your state.
A Note on BBB Grades: A high BBB grade doesn’t necessarily mean a company is right for you — it means they respond to complaints filed through the BBB. Read the actual complaint text and the company’s responses. That’s the useful part. See my full guide to what BBB letter grades actually mean →
Step 2: Check Consumer Complaints
The Consumer Financial Protection Bureau maintains a public database of complaints filed against financial companies. You can search for Consumer Debt Counselors directly:
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Search Consumer Debt Counselors’ complaint history in the CFPB database →
When you’re reading complaints, look for:
- What the complaints are about — fees, program performance, communication problems?
- How the company responded — did they resolve issues or just close them?
- Whether the same issue appears repeatedly — a pattern matters more than a single complaint
- The ratio of complaints to customers — a large company will have more complaints in raw numbers
Step 3: Read Their Reviews
Search for Consumer Debt Counselors on Trustpilot and Google Reviews. A few things to keep in mind as you read:
How to read Trustpilot like a pro: My complete guide to spotting red flags in Trustpilot reviews breaks down exactly what to look for — including how to identify review solicitation campaigns and reputation management tactics.
- Pay attention to what the 5-star reviews are actually about. If they’re praising a friendly phone call or easy signup — that’s interaction quality, not program performance. Compare those against reviews that specifically mention outcomes: debt paid off, program completed, fees as promised.
- Read the 2- and 3-star reviews carefully — these tend to be the most honest, from people who had mixed experiences and aren’t trying to tear the company apart
- Look at how the company responds to negative reviews — a defensive or dismissive response tells you something
- Check the review dates — a flood of 5-star reviews in a short period can indicate a solicitation campaign
Step 4: Read Their IRS Form 990
As a nonprofit, Consumer Debt Counselors is required to file an IRS Form 990 annually — and those filings are public. This is one of the most underused research tools available to consumers.
Find Consumer Debt Counselors’ Form 990 filings on ProPublica’s Nonprofit Explorer →
When you open a 990, here’s what to look for:
- Executive compensation — What does the CEO earn? Is it proportionate to the organization’s size and mission?
- Revenue vs. expenses — Are they running surpluses or consistent deficits? Multiple deficit years can signal financial instability.
- Program service revenue — How much of their income comes from the fees clients pay versus grants and donations?
- Mission alignment — Read their description of program services. Does what they say they do match how they describe their activities to the IRS?
- Conflict of interest policy — Part VI asks whether the organization has a conflict-of-interest policy and how it’s enforced
Why This Matters: Nonprofit status means they don’t pay corporate taxes and can accept tax-deductible donations — it doesn’t mean they’re automatically trustworthy or that their fees are low. The 990 is your window into how they actually operate.
Step 5: Ask the Right Questions Before You Enroll
Before signing anything: Run their contract through my free Contract Decoder tool. Paste it in and get a plain-English breakdown of what you’re agreeing to.
Before you commit to any debt management plan, get clear answers — in writing — to these questions:
- What is the total cost — monthly fees plus any enrollment fee — over the full length of the program?
- Which creditors do they have established relationships with, and which don’t participate?
- What happens to my accounts that aren’t included in the program?
- What are the consequences if I miss a payment or need to pause the program?
- How is my monthly payment held — in a trust account — and what happens to it if I cancel?
- What does “success” look like, and what percentage of people who enroll complete the program?
Before You Commit: A debt management plan isn’t right for everyone. Run your situation through my Find Your Path tool to see whether a DMP, debt settlement, bankruptcy, or another option fits your situation better.
Key Takeaways
- Verify credentials through NFCC, COA, BBB, and NMLS before anything else
- Read CFPB complaints for patterns — not just raw numbers
- On reviews, compare 5-star reviews about interactions vs. reviews about actual outcomes
- The IRS Form 990 is public — use ProPublica to review executive pay and program spending
- Get all fees and program terms in writing before you sign
- The comments section below contains real experiences from real clients — read them
Want the full research playbook? My Ultimate Consumer Guide to Checking Out a Debt Relief Company covers every tool and source in this guide — plus detailed walkthroughs for reading BBB profiles, spotting Trustpilot red flags, and searching federal court records on CourtListener.
Frequently Asked Questions
Is Consumer Debt Counselors a nonprofit?
Yes, Consumer Debt Counselors is a nonprofit 501(c)(3) organization. You can verify this directly through their IRS Form 990 filings on ProPublica’s Nonprofit Explorer.
How do I file a complaint against Consumer Debt Counselors?
You can file a complaint directly with the CFPB at consumerfinance.gov/complaint. You can also file with your state attorney general’s office and the BBB. Filing with the CFPB creates a public record and triggers a required company response.
Is Consumer Debt Counselors accredited?
I’d encourage you to verify current accreditation status directly through the NFCC member directory and the COA website — accreditation status can change, and those directories are the most accurate sources.
What is a debt management plan and how does it work?
A debt management plan (DMP) is a structured repayment program where you make one monthly payment to the credit counseling agency, which distributes funds to your creditors. Creditors often agree to reduced interest rates in exchange for a guaranteed payment schedule. DMPs typically take 3–5 years to complete. You must stop using enrolled credit accounts during the program. Fees are regulated by state law and typically modest for nonprofit agencies.
Should I use Consumer Debt Counselors to get out of debt?
That depends entirely on your situation. A debt management plan works well for some people and isn’t the right fit for others — it depends on your income, the types of debt you have, and your goals. I’d encourage you to run your situation through my Find Your Path tool before committing to any program.
Share Your Experience with Consumer Debt Counselors
If you’ve worked with Consumer Debt Counselors — as a client, a former employee, or someone who looked into them and decided not to enroll — I’d encourage you to share your experience in the comments. Your perspective helps others make a more informed decision.
To share your experience: Scroll to the bottom of this page — the comments box is there.
Before You Sign Anything: Run any debt relief contract through the free Contract Decoder to spot hidden fees and unfair terms. Check the company’s complaint history with the Scam-O-Meter.
Compare Your Real Options: Most debt relief companies won’t tell you about all your options — especially the ones they can’t profit from. Credit counseling has a 21-27% completion rate. Settlement resolves about 1% of enrolled debts fully. Bankruptcy has a 95% discharge rate — and protects your retirement. Take the Find Your Path quiz for a recommendation based on your actual numbers.
Browse all Credit Counseling & Debt Management reviews, or see the full Company Reviews directory.
