Nonprofit Credit Counseling Agency to Give Away Cash to Attract Potential Clients

A press release out from Debt Management Credit Counseling Corp, a nonprofit credit counseling group, caught my eye. In fact we’ve published the release in full, here.

The credit counseling group is making a big splash about $500 cash giveaway to one luck person that like them on Facebook and fills out the following form on their site.

According to the rules of the contest, entrants might want to familiarize themselves with the terms and conditions, just like they should before signing any credit agreement.

I found this little nugget in the terms that turns an innocent Facebook like into a winner who gets paid $500 and then who knows where their name and information go or get used for.

Acceptance of the prize constitutes permission for Sponsor and its agencies to use winner’s name and/or likeness, biographical material and/or entry (including an altered form of the entry) for advertising and promotional purposes without additional compensation. – Source

Would it not just be simpler for the charity to buy leads than all of this? After all, isn’t that the goal?

While I Was On the Facebook Page

While I was on their Facebook page I noticed this entry:

Now I know I recently wrote 10 Must Do Steps to Find the Best Credit Counseling or Debt Settlement Company for You but seriously, doesn’t just sound like this crying mother was pushed into a debt management plan rather than given a comprehensive review and analysis?

For a company that seems to hang its hat on education that Facebook post just seems to celebrate signing her up into a DMP and not educating her about all of her options.


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2 thoughts on “Nonprofit Credit Counseling Agency to Give Away Cash to Attract Potential Clients”


    (Business and Professions Code Sections 17539.5,17539.15, 17539.55)

    A “sweepstakes” is any procedure for distributing anything of value by lot or chance. A sweepstakes must not violate any provision of law, including the law that prohibits lotteries.

    Consumers often confuse sweepstakes, lotteries and contests. The main difference between a sweepstakes and a lottery is that the lottery participants have paid or promised to pay value for the chance to win the prize. The main differences between a sweepstakes and a contest are that the contest participants must use at least some skill to win the prize and must pay some value to participate in the contest.

    Solicitations offering people in California the opportunity to participate in a sweepstakes must disclose the odds of receiving each prize offered. The disclosure must be clear and conspicuous in a format such as “1 chance in 100,000” or “1:100,000.” If more than one prize is offered, the odds of winning each prize must be separately stated. The disclosure of odds must appear immediately adjacent to the first identification of the prize to which it relates, or in a separate section called “Official Rules” or “Consumer Disclosure.” If the disclosure appears in the Official Rules or Consumer Disclosure, there must be a clear and conspicuous statement close to the description of the prizes that directs the recipient to the appropriate section.


    (Business and Professions Code sections 17200, 17534-17536)

    Any person who violates the provisions on operation of contests or sweepstakes is guilty of a misdemeanor, and may be prosecuted by the Attorney General or by a district attorney. These provisions also are enforceable by civil court actions which
    can be filed by private parties, district attorneys, city attorneys, county counsel, the Attorney General and other agencies of the State. Depending on the nature of the action, remedies may include civil penalties of up to $2,500 for each violation, injunction, and restitution. A contest or sweepstakes which violates these provisions also may be subject to an additional civil penalty of up to $2,500 for each violation as an unlawful business practice.

    • I wondered the same thing myself but didn’t take the time to go look up all the rules, like Texas, to see if there was a nonrpofit exemption. As I’ve said in the past, if anyone thinks debt relief rules are tough, host a sweepstakes. Those can be brutal.


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