Tuesday, May 16, 2006

Credit Counseling Firms Lose Tax-Exempt Status

Ever get a call from a credit counseling firm telling you they can virtually eliminate your debt through some magic process, along with implying that their non-profit status should make you feel secure in their trustworthiness? Well, it took a while for the IRS to figure out what most of us pretty much already figured out, but now they've pulled the tax-exempt status from 41 credit counseling firms--or every single one of the firms they investigated.

Why? Because it was obvious that these non-profits were looking for profits, and waving their tax-exempt status around as a way to convince people of their legitimacy.

Oh, yeah--21 of the firms are also now under criminal investigation as well.

Serves 'em right.


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