The [tag]IRS[/tag] is finally about to give a giant chunk of the [tag]credit counseling[/tag] business a long-overdue spanking. They are planning to revoke the [tag]tax-exempt[/tag] status of all of the credit counseling companies they’ve completed auditing – 41 firms that represent 40% of that industries revenues – essentially because they’ve been taking advantage of their already financially vulnerable customers. Without that status, many of these firms will simply be unable to do business, as most of the banks they negotiate with will only deal with tax-exempt organizations.
What makes this interesting to me is the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, Section 106 of which ‘prohibits an individual debtor from filing under Federal bankruptcy law unless the individual has received a briefing from an approved [tag]nonprofit[/tag] budget and credit counseling service prior to filing a [tag]bankruptcy[/tag] petition.’
Give us your poor, your tired, your huddled masses longing to be free… and we’ll feed ‘em to the wolves.
