Consumer Credit Counseling Service – CredAbility, Lays Off 70

A tipster (send in your tips here) just sent this in and pointed out the news yesterday in the Atlanta Journal-Constitution that said the non-profit credit counseling group CredAbility has laid off 70 employees due to a reduction in funding and consumer demand for debt relief services.

CredAbility grew with the economic collapse. In 2007, it had 270 workers and expanded to 530 as the economy shrank and people found themselves with no jobs or underemployed and in over their heads.

McCosh said the slowdown in demand was apparent. For instance, demand for foreclosure counseling dropped nearly 9 percent comparing the first quarters of 2010 and 2011.

The laid-off CredAbility workers will have a minimum of two weeks’ severance pay, plus a week for every year of service after that. They also will receive counseling in dealing with the layoff and finding work, he said.

The nonprofit credit counseling agency’s annual operating income (revenue minus expenses) declined 42 percent to $2.8 million in 2009, the last year the agency filed a Form 990 with the Internal Revenue Service. – Source

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