Credit Counseling Instructions

OMB No. 1105-0084 Approval Expires 09/30/2028
U.S. Department of Justice
Executive Office for United States Trustees
INSTRUCTIONS FOR APPLICATION FOR APPROVAL AS A
NONPROFIT BUDGET AND CREDIT COUNSELING AGENCY
Introduction. In accordance with 11 U.S.C. § 111, as implemented by Application
Procedures and Criteria for Approval of Nonprofit Budget and Credit Counseling
Agencies by United States Trustees, 28 C.F.R. §§ 58.12 - 58.24 (the “Rule”), a nonprofit
budget and credit counseling agency (the “Agency”) seeking approval by the United States
Trustee1 shall submit an application to the Executive Office for United States Trustees
(“EOUST”) in the form described below. The Agency shall provide all information and
documents required by the EOUST or the United States Trustee responsible for each
judicial district in which the Agency seeks approval. Unless otherwise stated, the
application and appendices shall be typewritten2 using the space provided on the form.
Necessary attachments shall also be typewritten.
All Agencies should review the Rule thoroughly before completing an application.
Application Form and Instructions. The Application Form and Instructions comprise the
following sections:
Section 1. 	General Information Concerning the Agency
Section 2. 	Status as a Nonprofit Organization
Section 3. 	Quality, Experience, and Background in Providing Credit
Counseling Services
Section 4. 	Credit Counseling Methods and Curriculum
Section 5. 	Fees and Fee Waivers
1 As defined in 28 C.F.R. § 58.12(b)(39), the term “United States Trustee” means, alternatively:
(i) The Executive Office for United States Trustees;
(ii) A United States Trustee appointed under 28 U.S.C. § 581;
(iii) A person acting as a United States Trustee;
(iv) An employee of a United States Trustee; or
(v) Any other entity authorized by the Attorney General to act on behalf of the United States under this
part.
2 “Typewritten” includes completion of the online fillable PDF form, or completion of the form using a word
processing application or a typewriter.
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Section 6. 	Disclosures
Section 7. 	Administration of Debt Repayment Plans and the Safekeeping
and Payment of Client Funds
Section 8. 	Appendices
Appendix A.
Appendix B.
Appendix C.
Appendix D.
Appendix E.
Acknowledgments, Agreements, and Declarations in
Support of Application for Approval as a Nonprofit Budget
and Credit Counseling Agency
Judicial Districts
Business Locations
Matrix of Current Counselors
Activity Report for Approved Credit Counseling Agencies
Section 9. 	Certification and Signature
Except where a “No Change” (“NC”) box appears, complete all items in the application, even
if the requested information has not changed since the most recent application. Do not leave
any items blank. If the Agency has no information to provide, state “N/A” with respect to the
relevant item.
New Applicants. Check the box marked “New Applicant” in item 1.1. Complete every item
in the application and complete Appendices A through D. Do not check any of the “NC”
boxes. Where an item provides alternatives for new applicants and returning applicants,
respond as directed for new applicants only.
Returning Applicants. Check the box marked “Returning Applicant” in item 1.1. Where an
item provides alternatives for new applicants and returning applicants, respond as directed
for returning applicants only.
Statement of No Change for Returning Applicants. Where an “NC” box appears beside an
item, if the Agency’s response to that item is identical to its response in the most recent
application, the Agency may check the “NC” box indicating no changes have occurred and
continue to the next item. If an item does not offer the option of checking an “NC” box, then
the Agency must complete the item even if its response has not changed since the previous
application.
Five Year Requirement for Returning Applicants to Complete Application in Full. Every
five years, returning applicants will be required to complete the application in full, whether or
not there are any changes in their responses (the “refreshed application”). Where an “NC” box
appears beside an item, the Agency shall check the “NC” box indicating no changes have
occurred if the Agency’s response to that item is identical to its response in the most recent
application, but the Agency must also answer that question in full. Beginning in January
2023, Agencies will be informed one year in advance that they will complete the following
year’s application in full.
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Mailing Instructions, Information Requests, and Notifications. The application should be
completed in its entirety, which includes all supplemental documents and information that are
requested, before submission to the United States Trustee. An incomplete application may
result in delay or denial of the application. Once completed, the application should be sent by
one of two permissible delivery methods:
(1) 	By encrypted electronic mail to the following address:
ccapp@usdoj.gov
The application may be submitted in one or more e-mail transmissions to accommodate file
size limitations. The maximum size of any e-mail is 10MB. Please include the Agency’s name
(and Agency number, if previously assigned), in the subject line of all e-mail transmissions.
Retain the original application for your records.
(2) 	By overnight mail to the following address:
Executive Office for United States Trustees
Credit Counseling Application Processing
441 G Street, N.W.
Suite 6150
Washington, D.C. 20548
(202) 514-4100
As soon after receipt as practicable, the United States Trustee will send the Agency an
acknowledgment letter confirming receipt. The principal contact identified in the application
shall receive all notices and requests for information. Correspondence with the United
States Trustee should be submitted to the address set forth above, unless otherwise
instructed.
An Agency may also submit an application using another secure method, with prior approval
of the United States Trustee.
Duty to Notify the United States Trustee. The Agency has a continuing duty to promptly
notify the United States Trustee of any circumstances that would materially alter or change a
response to any section of the application regardless of whether they occur while an
application to become an approved Agency is pending before the United States Trustee or
after the Agency has been approved. Notification to the United States Trustee must be in
writing, signed by an authorized official, and include all pages of the application and
appendices that are affected by the change. Notification shall be transmitted in the same
manner as the application.
The Agency shall immediately notify the United States Trustee in writing of any failure by the
Agency to comply with any statutory or regulatory standard or requirement specified in 11
U.S.C. §§ 109 or 111, the Rule, or the terms under which the United States Trustee approved
the Agency to act as an approved Agency. Specifically, the Agency shall immediately notify
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the United States Trustee, in writing, of any of the following events:
(1) Notification by the Internal Revenue Service or by a state or local taxing authority
that the approved Agency has been selected for audit or examination regarding its tax-
exempt status, or any notification of a compliance check by the Internal Revenue
Service or by a state or local taxing authority;
(2) Revocation or termination of the approved Agency’s tax-exempt status by
any governmental unit or by any judicial officer;
(3) Cessation of business by the approved Agency or by any office of the Agency, or
withdrawal from any federal judicial district(s) where the approved Agency is
approved;
(4) Any investigation of, or any administrative or judicial action brought against,
the approved Agency by any governmental unit;
(5) Termination or cancellation of any surety bond or fidelity insurance;
(6) Any administrative or judicial action brought by any entity that seeks recovery
against a surety bond or fidelity insurance;
(7) Any action by a governmental unit or a court to suspend or revoke the approved
Agency’s articles of incorporation, or any license held by the approved Agency, or
any authorization necessary to engage in business;
(8) A suspension, or action to suspend, any accreditation held by the approved Agency,
or any withdrawal by the approved Agency of any application for accreditation, or any
denial of any application of the approved Agency for accreditation;
(9) A change in the approved Agency’s nonprofit status under any applicable law; or
(10) Any change in the banks or financial institutions used by the Agency.
Approval Period and Deadline for Submission of Application for Renewal. Unless
terminated earlier, the Agency approved to provide credit counseling services for the first
time shall be approved for a six-month probationary period. Except as provided below, each
approval period after the probationary period shall be for one year. The Agency shall apply
no later than 45 days before the expiration of its existing approval period to be considered for
renewal. The Agency is responsible for monitoring the expiration date of the current approval
period as well as the application deadline, and for timely submitting an application.
So long as the Agency has submitted a complete and timely application for renewal, it may
continue to provide credit counseling services while its application for renewal is under
review by the United States Trustee. If the renewal application is approved for an additional
one-year period, that renewal period will begin on (a) the date after its current approval period
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expires, or (b) the date the United States Trustee approves the application, whichever is later.
If the Agency does not submit an application for renewal before the expiration of its current
approval period, the approval will automatically expire, the Agency no longer will be
authorized to act as an approved Agency, and the Agency must apply for a new six-month
probationary period before providing credit counseling services to clients pursuant to 11
U.S.C. §§ 109 and 111.
Amendments. After approval, the Agency must obtain the United States Trustee’s approval
before making any of the following changes:
(1) Cancellation or change in the amount of the surety bond or employee fidelity
bond or insurance;
(2) The engagement of an independent contractor to provide credit counseling
services or to have access to, possession of, or control over client funds;
(3) Any increase in the fees, contributions, or payments received from clients
for credit counseling services or a change in the Agency’s fee policy;
(4) Expansion into additional federal judicial districts;
(5) Any changes to the method of delivery the approved Agency employs to
provide credit counseling services; or
(6) Any changes in the approved Agency’s credit counseling services.
The Agency shall submit an amended application, reflecting all material changes that will
occur due to the changes, and include a newly executed Section 9, “Certification and
Signature.” The amended application need only include the items affected by the changes.
Burden Statement. Respondents are not required to complete this form unless it contains a
valid OMB number. The public reporting burden for this application is estimated to average
ten hours for an initial application, four hours for a standard re-application and five hours for a
refreshed re-application, including time for reviewing instructions, gathering information, and
completing the application. Comments regarding this burden estimate or any other aspect of
this application, including suggestions for reducing the burden, should be directed to the
Executive Office for United States Trustees, Credit Counseling Application Processing, 441 G
Street, N.W., Suite 6150, Washington, D.C. 20548.
Privacy Act Statement. Section 111 of title 11, United States Code, authorizes the collection
of this information. The primary use of this information is by the United States Trustee to
approve Agencies to provide services as nonprofit budget and credit counseling agencies.
Disclosure of this information may be to an appropriate federal, state, local, regulatory, tribal,
or foreign law enforcement agency when the information indicates a violation or potential
violation of law, or to a complainant or victim when such information is necessary to provide
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an explanation concerning the results of an investigation of which they complained or were a
victim. Other disclosures may be made pursuant to the routine uses enunciated in the United
States Trustee Program’s system of records notice, UST-005, “Credit Counseling and Debtor
Education Files and Associated Records.” See 71 Fed. Reg. 59,818, 59,727-59,830 (Oct. 11,
2006). Additional disclosure of the information may be to district and regional offices of each
United States Trustee. The information will not be shared with any other agencies unless
allowed by law.
Any person doing business with the federal government must furnish a taxpayer identifying
number. 31 U.S.C. § 7701. Furnishing the taxpayer identifying number, as well as other data,
is voluntary, but failure to do so may delay or prevent action on the application.
APPLICATION AND INSTRUCTIONS
Section 1. 	General Information Concerning the Agency
Item 1.1: United States Trustee assigned Agency number. New applicants: Enter “N/A” for
this item. Returning applicants: Provide the four or five digit number the United States
Trustee assigned when the Agency first applied to be an approved Agency.
Item 1.2: Name of Agency. Provide the Agency’s legal name as designated by the state
of incorporation or organization.
Item 1.4: Additional names. List all aliases, d/b/a, or fictitious names the Agency currently
uses (the Agency should list former names in item 2.2).
Item 1.6: Website(s): Identify all websites, landing pages and destination pages, whether
operational or not, owned by the Agency and the date the website, landing page or destination
page was created.
Section 2. 	Status as a Nonprofit Organization
Guidelines. 	Organization and operation as a nonprofit entity. The Agency must be
organized and operated as a nonprofit entity and have a board of directors, the
majority of which: (a) are not relatives; (b) are not employed by the Agency;
and (c) will not directly or indirectly benefit financially from the outcome of
the counseling services provided by the Agency. The Agency should avoid
any conduct or transactions that generate a private benefit for any individual
or group related or connected to the Agency.
Ethical standards. The Agency shall not engage in any conduct or transaction,
other than counseling services, that generates a direct or indirect financial
benefit for any member of the board of directors or trustees, officer,
supervisor, or any relative thereof. In addition, no such person shall receive
any commissions, incentives, bonuses, or benefits (monetary or non-monetary)
of any kind that are directly or indirectly based on the financial or legal
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decisions any client makes after requesting credit counseling services.
The Agency may not enter into any referral agreements or receive any
financial benefit that involves the Agency paying to or receiving from any
entity or person referral fees for the referral of clients to or by the Agency,
except payments under a fair share agreement. The Agency may not enter into
agreements involving counseling services that create a conflict of interest.
The Agency may not provide counseling services to a client with whom it has
a lender-borrower relationship.
No member of the board of directors or trustees, officer or supervisor of an
approved Agency may be: a relative of an employee of the United States
Trustee; a trustee appointed under 28 U.S.C. §§ 586(a)(1) or (b) for any federal
judicial district where the Agency is providing or is applying to provide
counseling services; a federal judge in any federal judicial district where the
Agency is providing or is applying to provide counseling services; a federal
court employee in any federal judicial district where the Agency is providing
or is applying to provide counseling services; or a certified public accountant
that audits the Agency’s trust account.
Specific Instructions.
Item 2.1: Basis for nonprofit status. Describe the Agency’s nonprofit purpose, such as its
public, charitable, educational, or other organizing purpose under applicable state law. If the
Agency is tax-exempt pursuant to section 501(c)(3) or another section of the Internal
Revenue Code, please identify the tax-exempt status and applicable Internal Revenue Code
section.
Items 2.3, 2.4 and 2.5: Current officers, directors, and trustees. Provide information about
individuals currently serving as officers, directors, and trustees. “Compensation” includes
both direct compensation, such as wages and salaries, and indirect compensation, such as
bonuses, deferred compensation, and noncash compensation.
Item 2.6(a) and (b): Referrals. Provide information about individuals or entities who provide
referrals to the Agency or receive referrals from the Agency. Disclose oral referral
agreements and arrangements as well as written agreements.
Item 2.6(c): Contracts. Disclose all contracts with related individuals or entities, whether or
not they pertain to credit counseling services. For purposes of this item, a “related entity”
includes a business in which an officer, director or employee of the Agency, or relative of an
officer, director or employee of the Agency, owns, manages, controls or holds, directly or
indirectly, a 20 percent ownership or financial interest in the business.
Item 2.7: Independent contractors. The term “independent contractor” means a person or
entity who provides any goods or services to the Agency other than as an employee and as to
whom the Agency does not:
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(1) direct or control the means or methods of delivery of the goods or services
being provided;
(2) make financial decisions concerning the business aspects of the goods or
services being provided; and
(3) have any common employees.
“Independent contractors” do not include counselors employed by the Agency. Do not list
the Agency’s own counselors; list those on Appendix D. If the Agency lists independent
contractors with access to, possession of, or control over client funds, complete Section 7 of
the application.
Section 3. Quality, Experience, and Background in Providing Credit Counseling
Services
Guidelines. 	Generally. The Agency shall operate in a prudent business manner and shall
deal responsibly and effectively with matters relating to the quality,
effectiveness, and financial security of the services it provides.
Business experience. The Agency must have adequate experience and
background in credit counseling. To meet this requirement, the Agency must
have provided credit counseling services for the last two years. If the Agency
has not provided credit counseling services for the last two years, then it must
employ in each office location that provides counseling services at least one
supervisor with experience and background in providing credit counseling for
no less than two of the last five years.
Compliance with laws and regulations. The Agency must be in compliance
with all applicable laws and regulations of the United States and each state,
commonwealth, district, or territory of the United States in which the Agency
conducts counseling services, including all laws governing licensing and
registration.
Specific Instructions.
Item 3.2: Time in business. State the length of time the Agency has offered credit counseling
services. The Agency with fewer than two years of experience immediately preceding the
application date shall complete item 3.3. All other Agencies may continue to item 3.4.
Item 3.6: Revocation of accreditation or certification. If the Agency’s accreditation was
revoked, suspended, or lapsed at any time during the last five years, state the date(s) of
revocation, suspension or lapse, and provide a detailed explanation of the circumstances that
led to the Agency’s accreditation being revoked, suspended, or lapsed. If any counselor’s
certification was revoked, suspended, or lapsed at any time during the last five years, identify
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the counselor, identify the relevant date(s) and provide a detailed explanation of the
circumstances.
Item 3.8: Financial statements. Provide audited financial statements. If an Agency has not
commenced operations as of the application date, it may provide pro forma financial
statements in lieu of audited financial statements.
Item 3.9: Litigation. List all legal actions, proceedings, investigations, arbitrations,
mediations, and potential bond or other claims, whether pending or adjudicated, in which the
Agency, any affiliate listed in the response to item 2.6(c), or any officer, director, trustee,
employee, or agent of the Agency is a party, and the outcomes of any such actions.
Items 3.10 and 3.11: Regulatory oversight, investigations, and Internal Revenue Service
matters. Disclose audits, investigations, and enforcement actions by state and local tax,
oversight, and regulatory agencies in the response to item 3.10. In the response to item 3.11,
provide the correspondence relating to Internal Revenue Service audits, investigations, and
enforcement actions, including: a letter indicating that the Agency’s credit counseling
activities are consistent or inconsistent with its tax-exempt status as of a certain date; a “no-
change advisory;” a closing agreement; a notice of referral; or a revocation of the Agency’s
exemption. Routine audits performed on an annual or other periodic basis need not be
disclosed, except to the extent they form the basis of an enforcement action.
Item 3.12: Continuing obligation to update. Disclose to the United States Trustee any new
actions of the type described in items 3.6, 3.9 or 3.10 that commence during the application
review period. Provide to the United States Trustee copies of correspondence described in
item 3.11 sent or received by the Agency or an affiliate during the application review period.
Section 4. 	Credit Counseling Methods and Curriculum
Guidelines. 	Adequate credit counseling services. The Agency shall provide, at a minimum,
an adequate written analysis, particularized to the client, of each client’s current
financial condition, including a discussion of the factors that caused such
financial condition, budget analysis, consideration of all alternatives to resolve
a client’s credit problems, and formation of a plan to respond to the financial
problems without incurring negative amortization of debt. The typical length of
an adequate counseling session is at least 60 minutes.
In the case of internet counseling, counseling is not complete until the
client has engaged in interaction with a counselor, whether by electronic
mail, live chat, or telephone, following the automated portion of the
counseling session.
Providers of telephone services or internet services. In addition to meeting all
other requirements, the Agency that provides telephone services or internet
services must demonstrate sufficient experience and proficiency in designing
and providing services by these methods of delivery, including proficiency in
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employing verification procedures to ensure the person receiving the
counseling services is the client and to determine whether the client has
completely received counseling services. Determining whether the client has
completely received counseling services means ensuring that the client is the
same person who both commences and completes the counseling, and that the
client engages in interaction with a counselor by electronic mail, live chat, or
telephone following the automated portion of the counseling. Identity
verification requires the Agency to:
(a) obtain one or more unique personal identifiers from the client
and assign an individual access code, user ID, or password at the
time of enrollment; and
(b) require the client to provide the appropriate access code, user ID,
or password, and also one or more of the unique personal identifiers
during the course of delivery of the counseling services.
The Agency shall furnish toll-free telephone numbers for both hearing and
hearing-impaired clients and potential clients whenever telephone
communication is required. The Agency shall provide telephone amplification,
sign language
services, or other communication methods for hearing-impaired clients or
potential clients.
Language services. The Agency shall inform clients with limited English
proficiency of the languages it offers.
Prohibition against legal advice. The Agency shall refrain from giving
legal advice to clients or potential clients.
Certificates of counseling. The Agency agrees to issue certificates of
counseling in accordance with the directives established by the United States
Trustee. For reference, please consult 28 C.F.R. § 58.22.
Specific Instructions.
Check the box for each method of delivery for which the Agency seeks approval, and
describe any languages, other than English, in which the Agency provides counseling. The
former method of delivery, “telephone/internet,” has been eliminated. The Agency must
select either telephone or internet based on the primary method used for delivery of
counseling services.
Item 4.2: Other counseling services. List the other types of counseling services the Agency
provides, whether or not related to credit counseling, such as housing counseling or student
loan counseling.
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Item 4.3: Language referrals. List the number of referrals of clients or potential clients the
Agency provided to other approved Agencies for counseling based on limited English
proficiency, and identify the languages, other than English, requested by such clients or
potential clients.
Items 4.4 - 4.6: Counseling process. The Agency that seeks approval to provide more than
one delivery method shall provide a complete response for each delivery method. As to each
element below, provide examples of counseling or identity verification forms (whether used
by the client, the counselor, or both), written counseling materials, procedures, manuals,
scripts, outlines, and/or guidelines, where applicable. If the listed materials are available on
the internet (whether or not accessible to the client), provide the URL for the website and, if
necessary, instructions for accessing such materials, such as a username and a password. If
the listed materials are available only on the Agency’s intranet, provide printed screens of all
such resource materials. The Agency shall not unilaterally change its counseling methods
or services without prior United States Trustee approval.
Item 4.4: In-person counseling. Describe the counseling process, beginning with the process
of providing information to or obtaining information from a client or potential client, and
ending with certificate issuance:
(a) 	Describe the process of obtaining client information and providing mandatory
disclosures. 	If any portion of the information-gathering takes place by
telephone or internet, describe that portion in detail and provide the telephone
number a client calls or the URL for the website where the client provides the
information. Provide copies of any and all agreements and consents the Agency
requires clients to sign in connection with counseling services. If the agreement
or consent takes an electronic form, provide the URL for the website where the
client accesses the form;
(b) 	Describe the substance of the counseling services, including an analysis of
the client’s current financial condition, factors that caused the client’s
financial condition, and how a client can develop a plan to respond to his or
her financial problems without incurring negative amortization of debt; and
(c) 	Describe the certificate issuance process, including the timing of
certificate issuance and the Agency’s policies concerning which
personnel may issue certificates.
Item 4.5: Telephone counseling. Describe the counseling process, beginning with the process
of providing information to or obtaining information from a client or potential client, and
ending with certificate issuance:
(a) 	Describe the process of obtaining client information and providing mandatory
disclosures. To the extent information-gathering takes place by telephone or
internet, describe that portion in detail and provide the telephone number a
client calls or the URL for the website where the client provides the
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information. Provide copies of any and all agreements and consents the Agency
requires clients to sign in connection with counseling services. If the
agreement or consent takes an electronic form, provide the URL for the website
where the client accesses the form;
(b) 	Describe the substance of the counseling services, including an analysis of
the client’s current financial condition, factors that caused the client’s
financial condition, and how a client can develop a plan to respond to his or
her financial problems without incurring negative amortization of debt;
(c) 	Describe the Agency’s experience and proficiency in providing
counseling services over the telephone;
(d) 	Describe the Agency’s client identity verification processes, including the
method by which the Agency confirms the identity of the client before
receiving counseling services by telephone by:
(1) 	obtaining one or more unique personal identifiers from the client and
assigning an individual access code, user ID, or password at the time of
enrollment; and
(2) 	requiring the client to provide the appropriate access code, user ID, or
password, and also one or more of the unique identifiers during the
course of delivery of counseling services;
(e) 	Describe the criteria by which the Agency determines that the client has
completed the counseling as it was designed. If the Agency provides
automated telephone counseling, describe the process by which the client
engages in interaction with a counselor, whether by electronic mail, live chat,
or telephone, following the automated portion of the counseling session;
(f) 	Describe how and when the Agency delivers the written analysis of the client’s
current financial condition to the client;
(g) 	Provide a complete response to items 4.5(d), (e), and (f) as to spouses
receiving joint counseling; and
(h) 	Describe the certificate issuance process, including the timing of
certificate issuance, the method of delivery to the client, and the
Agency’s policies concerning which personnel may issue certificates.
Item 4.6: Internet counseling. Describe the counseling process, beginning with the process
of providing information to or obtaining information from a client or potential client, and
ending with certificate issuance:
(a) 	Describe the process of obtaining client information and providing mandatory
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disclosures. To the extent information-gathering takes place by telephone or
internet, describe that portion in detail and provide the telephone number a
client calls or the URL for the website where the client provides the
information. Provide copies of any and all agreements and consents the Agency
requires clients to sign in connection with counseling services. If the agreement
or consent takes an electronic form, provide the URL for the website where the
client accesses the form;
(b) 	Describe the substance of the counseling services, including an analysis of
the client’s current financial condition, factors that caused the client’s
financial condition, and how a client can develop a plan to respond to his or
her financial problems without incurring negative amortization of debt;
(c) 	Describe the Agency’s experience and proficiency in providing
counseling services over the internet;
(d) 	Describe the Agency’s client identity verification processes, including the
method by which the Agency confirms the identity of the client before
receiving counseling services by internet by:
(1) obtaining one or more unique personal identifiers from the client
and assigning an individual access code, user ID, or password at the
time of enrollment; and
(2) requiring the client to provide the appropriate access code, user ID,
or password, and also one or more of the unique personal identifiers
during the course of delivery of the counseling services;
(e) 	Describe the criteria by which the Agency determines that the client has
completed the counseling as it was designed. Describe the process by which
the client engages in interaction with a counselor, whether by electronic mail,
live chat, or telephone, following the automated portion of the counseling
session;
(f) 	Describe how and when the Agency delivers the written analysis of the client’s
current financial condition to the client;
(g) 	Provide a complete response to items 4.6(d), (e), and (f) as to spouses
receiving joint counseling; and
(h) 	Describe the certificate issuance process, including the timing of
certificate issuance, the method of delivery to the client, and the
Agency’s policies concerning which personnel may issue certificates.
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Section 5. 	Fees and Fee Waivers.
Guidelines: 	Fees. The Agency shall charge reasonable fees for, or relating to, credit
counseling services. A fee of less than or equal to $50 is presumed reasonable;
fees in excess of $50 are presumed not reasonable and require prior approval of
the United States Trustee. The Agency may exceed the presumptively
reasonable fee after receiving approval from the United States Trustee by
demonstrating, at a minimum, that its costs for delivering the counseling
services justify the requested fee. The Agency bears the burden of establishing
that its proposed fee is reasonable.
Fee waivers. The Agency must provide services without regard to a client’s
ability to pay the fee. A client is presumptively entitled to a fee waiver if the
client’s current household income is less than 150 percent of the poverty
guidelines updated periodically in the Federal Register by the U.S. Department
of Health and Human Services under the authority of 42 U.S.C. § 9902(2), as
adjusted from time to time, for a household or family of the size involved in the
fee determination. The Agency may rebut the presumption, and charge a
reduced fee, if the Agency determines, based on income information the client
submits in connection with counseling services, that the client is able to pay the
fee in a reduced amount.
Specific Instructions.
Item 5.1: Fees.
(a) 	Types of fees. Disclose all fees charged for counseling services, including
additional fees for certificate issuance. If the Agency charges different fees
based on delivery method (e.g., in-person, telephone, and internet counseling),
disclose the different fees and specify the applicable delivery method.
(b) 	Fee reductions and special rates. Do not include reductions based on inability
to pay in response to this item. Disclose such fee waivers and fee reductions in
the response to item 5.2(a). If the Agency charges a reduced rate for spouses
who take the course together, disclose the joint rate as well as the individual
rate. If the Agency charges reduced rates based on criteria other than ability to
pay, such as reduced rates to clients of certain attorneys or law firms, or clients
obtained through referrals, disclose the reduced rate and specify the basis for
the reduction and the identity of the individual or entity serving as the basis for
reduction. If the reduction is pursuant to oral or written agreement, or is in
consideration of a referral agreement or arrangement, disclose such agreements
or arrangements in response to item 2.6. The Agency shall immediately
notify the United States Trustee in writing of any decrease in its fee.
(c) 	Fee communication to clients; disclosures. State whether the disclosures are
communicated to clients and potential clients orally, by recording, in writing,
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or electronically (for example, via the internet or e-mail). Specify the timing
of disclosures to clients and potential clients. Provide the URL for electronic
disclosures. Include copies of all written and electronic disclosures in
response to section 6; do not include copies of the disclosures here.
(d) 	Fees exceeding $50 per client. If the Agency has been approved to charge a
fee over $50 per client in connection with a prior application, the Agency need
not provide a fee justification in connection with this application unless the
Agency seeks a further increase of its fees. If the Agency seeks an increase
over $50 per client for the first time, or seeks to increase an existing fee in
excess of $50 per client, the Agency shall provide appropriate documentation
demonstrating that its costs for providing the counseling services exceed the
proposed fee. The Agency shall not unilaterally increase its fee without
prior United States Trustee approval.
Item 5.2: Fee waiver and fee reduction.
(a) 	Fee waiver policies. Fully describe any and all fee waiver and fee reduction
policies based on the client’s ability to pay, including those policies at the
discretion of the Agency or counselor, such as the client’s net worth,
dependence on government assistance, or receipt of pro bono legal services in
connection with a filed or anticipated bankruptcy case.
(b) 	Fee waiver disclosure. State whether the fee waiver disclosures are
communicated to clients and potential clients orally, by recording, in writing, or
electronically (for example, via the internet or e-mail). Specify the timing of
disclosures to clients and potential clients. Provide the URL for electronic
disclosures. Include copies of all written and/or electronic disclosures in
response to section 6; do not include copies of the disclosures here.
Section 6. 	Disclosures
Guidelines. Generally. The Agency shall make mandatory disclosures prior to providing any
information to or obtaining any information from a client or potential client, and
prior to providing any counseling services. The Agency may use more than one
form to communicate the required disclosures, including intake sheets, client
agreements, welcome letters or similar documents, but one form is preferable.
The written form and the electronic form, if any, must be consistent.
Mandatory disclosures. The list of mandatory disclosures includes:
(1) The Agency’s fee policy, including any fees associated with generation of the
certificate;
(2) The Agency’s policies enabling clients to obtain counseling services for free or
at reduced rates based upon the client’s lack of ability to pay. To the extent the
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Agency publishes information concerning its fees on the internet, such fee
information must include the Agency’s policies enabling clients to obtain
counseling for free or at reduced rates based upon the client’s lack of ability to pay;
(3) The Agency’s policy to provide free bilingual counseling services or
professional interpreter assistance to any limited English proficient client;
(4) The Agency’s funding sources;
(5) The counselors’ qualifications;
(6) The potential impacts on credit reports of all alternatives the Agency may
discuss with the client;
(7) The Agency’s policy prohibiting it from paying or receiving referral fees for
the referral of clients, except under a fair share agreement;
(8) The Agency’s obligation to provide a certificate to the client promptly upon the
completion of counseling services;
(9) A statement that the client has the opportunity to negotiate an alternative
payment schedule with regard to each unsecured consumer debt under terms as set
forth in 11 U.S.C. § 502(k), and a statement whether or not the Agency will
provide this service. If the Agency does not provide this service, it shall disclose
that it may refer the client to another approved Agency, and shall disclose that
clients may incur additional fees in connection with such a referral;
(10) The fact that the Agency might disclose client information to the United
States Trustee in connection with the United States Trustee’s oversight of the
Agency, or during the investigation of complaints, during on-site visits, or during
quality of service reviews;
(11) The fact that the United States Trustee has reviewed only the Agency’s
credit counseling services (and, if applicable, its services as a provider of a
personal financial management instructional course pursuant to 11 U.S.C. §
111(d)), and the fact that the United States Trustee has neither reviewed nor
approved any other services the Agency provides to clients; and
(12) The fact that a client will receive a certificate only if the client completes
counseling services.
Specific instructions.
Provide copies of any and all disclosures the Agency supplies clients or potential clients in
connection with counseling services. If the Agency also provides an electronic disclosure,
provide the URL for the webpages evidencing those disclosures. Ensure that the Agency’s
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responses to items 4.4(a), 4.5(a), and 4.6(a) describe the timing of the disclosures to the client
or potential client.
Section 7. 	Administration of Debt Repayment Plans and the Safekeeping
and Payment of Client Funds
Guidelines. 	This section applies only to Agencies offering debt repayment plans
(“DRPs”). If the Agency does not offer DRPs, continue to Section 8.
Financial security. The Agency must have adequate financial resources to
provide continuing support services for DRPs over the life of any plan, and
provide for the safekeeping of client funds.
Banking. The Agency shall deposit all client funds into a trust account insured
by a federal institution with respect to each client up to the maximum amount
allowable by the federal institution. Accounts shall be denominated as trust or
fiduciary accounts.
Accounting. The Agency shall keep and maintain books, accounts, and records
to provide a clear and readily understandable record of all business conducted
by the Agency.
Bonding. Agencies that offer DRPs must provide the following:
(a) 	A surety bond payable to the United States in an amount which is the
lesser of: (1) two percent of the Agency’s prior year disbursements
made from trust accounts; or (2) equal to the average daily balance
maintained in all trust accounts for the six months prior to submission
of the application. At a minimum, the bond must be $5,000.
(b) 	The Agency may receive an offset or credit in the surety bond amount
required by the United States Trustee if: (1) the Agency has previously
obtained a surety bond, or similar cash, securities, insurance (other than
employee fidelity insurance), or letter of credit, in compliance with the
licensing requirements of the state in which the Agency seeks approval
from the United States Trustee; (2) the surety bond, or similar cash,
securities, insurance (other than employee fidelity insurance), or letter
of credit provides protection for the clients of the Agency; (3) the surety
bond, or similar cash, securities, insurance, or letter of credit, must be
written in favor of the state or the appropriate state Agency; and (4) the
offset/credit is based on the annual disbursements or average daily bank
balance directly related to the clients in the particular state as set forth in
(a) above. See Example 1 below.
Offsets and credits shall be computed on a state by state basis. A
state employee bond or fidelity insurance amount can only be applied to
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offset the United States Trustee bond to the maximum United States
Trustee bond requirement for that state. To the extent an employee
bond or fidelity insurance amount requirement exceeds the maximum
United States Trustee employee bond or fidelity insurance amount
requirement attributable for that state, the state employee bond or
fidelity insurance amount cannot offset United States Trustee bond
requirements for any other states.
(c) 	Proof of adequate employee bonding or fidelity insurance. The
amount shall be 50 percent of the surety bond amount calculated prior
to any offset or credit that the Agency may receive for state bonds. At
a minimum, the employee bond or fidelity insurance must be $5,000.
(d) 	The Agency may receive an offset or credit against the employee bond
or fidelity insurance amount required by the United States Trustee if: (1)
the Agency has previously obtained an employee bond or fidelity
insurance in compliance with the requirements of the state in which the
Agency seeks approval from the United States Trustee; (2) the
deductible does not exceed a reasonable amount considering the
financial resources of the Agency; and (3) the offset or credit is the
lesser of (i) the principal amount of the employee bond or fidelity
insurance and (ii) the amount calculated based on the annual
disbursements or average daily bank balance directly related to the
clients in the particular state as set forth in (c) above. See Example 2
below.
Offsets and credits shall be computed on a state by state basis. A
state bond can be applied only to offset the United States Trustee bond
to the maximum United States Trustee bond requirement for that state.
To the extent a state bond requirement exceeds the maximum United
States Trustee bond requirement attributable for that state, the state
bond cannot offset United States Trustee bond requirements for any
other states.
Example 1: Surety Bond Offset or Credit
The Agency with total annual disbursements of $3,000,000 seeks approval in judicial districts
located in three states. The disbursements for the clients in each state are $1,000,000. State 1
has no bonding requirement; State 2 has a fixed surety bond of $15,000; and State 3 has a
bonding requirement of 10 percent of total annual disbursements. The Agency would calculate
the appropriate United States Trustee bonding requirement as follows:
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State 	Disbursements 	2% Bond
Requirement*
State Bond
Amount
UST
Bond Amount
1 	$1,000,000 	$20,000 	$0 	$20,000
2 	$1,000,000 	$20,000 	$15,000 	$5,000
3 	$1,000,000 	$20,000 	$100,000 	$0
Total 	$25,000
* In lieu of 2% of total annual disbursements, the Agency may use its average daily balance maintained in
all trust accounts for the six months prior to submission of the application.
The Agency must supply a bond calculation, similar to the example above,
demonstrating its offset or credit computation.
Example 2: Employee Bond or Fidelity Insurance Offset or Credit
The Agency with total annual disbursements of $2,000,000 seeks approval in judicial
districts located in two states. The disbursements for the clients in each state are
$1,000,000 each. State 1 has no employee bonding or fidelity insurance requirement and
State 2 has an employee bonding or fidelity insurance requirement of 10 percent of
monthly average disbursements (in this example $83,000 per month). The Agency would
calculate the appropriate United States Trustee employee bonding or fidelity insurance
requirement as follows:
State 	Disbursements 	Surety Bond
Prior to Any
Offsets/Credits*
50% of
Surety Bond
State
Insurance
Amount
UST
Insurance
Amount
1 	$1,000,000 	$20,000 	$10,000 	$0 	$10,000
2 	$1,000,000 	$20,000 	$10,000 	$8,300 	$1,700
Total 	$11,700
* In lieu of the surety bond calculation based on total annual disbursements, the Agency may use the
average daily balance maintained in all trust accounts for the six months prior to submission of the
application.
The Agency must provide an insurance calculation, similar to the example above,
demonstrating its offset/credit computation.
Administration by independent contractors. Subject to the exceptions below, if the
Agency has contracted with an independent contractor to administer any part of its
DRPs, the independent contractor shall either be an approved Agency or shall meet
specific surety bonding requirements. Specifically, an independent contractor that is
not an approved Agency shall be specifically covered under the Agency’s surety bond
or:
(a) have a surety bond sufficient to meet the requirements set forth in (a) of the
Bonding section above, and
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(b) agree in writing to allow the United States Trustee to audit the independent
contractor’s trust accounts for the DRPs administered on behalf of the Agency
and to review the independent contractor’s internal controls and administrative
procedures.
Exceptions to surety bonding requirement: There exist two exceptions to the surety
bonding requirement for independent contractors:
(a) If the independent contractor holds funds for transmission for 5 days or
less, then the amount of the required surety bond shall be $500,000; or
(b) If the independent contractor performs only electronic fund transfers on the
Agency’s behalf, then the independent contractor need not satisfy the bonding
and auditing requirements set forth in the Administration by Independent
Contractors section of the Instructions above during such time as the
independent contractor is authorized by the National Automated Clearing
House Association to participate in the Automated Clearing House system.
Specific instructions.
Item 7.1: Agency DRPs 	If the Agency currently offers DRPs to its clients, then it must
complete section 7 in its entirety.
If the Agency has ceased offering DRPs to new clients who receive counseling services from
the Agency, but continues to service, for earlier-counseled clients, any DRPs existing at the
date of the application, the Agency shall state the date on which the Agency ceased offering
DRPs to new clients. The Agency shall continue to maintain a surety bond payable to the
United States for the duration of such plans based on disbursements pursuant to those plans, as
set forth above.
Complete items 7.3 through 7.9 of the application.
Item 7.5: Independent contractors. To the extent the Agency uses any independent contractor
to administer, process, or execute any aspect of its DRPs or to handle client funds, it must
disclose those independent contractors.
Item 7.9(d): Independent contractor status. Consult the box checked in response to item 7.7 to
determine the necessary documents to attach as follows:
(a) The independent contractor performs only electronic fund transfers on the
Agency’s behalf, and no other functions. Exempt from bonding requirement.
Attach no documents;
(b) The independent contractor holds funds for transmission for five days or
less: Bonding requirement is $500,000. Attach evidence of the bond;
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(c) The independent contractor is an approved Agency: Attach evidence of
the approved Agency’s bond;
(d) The independent contractor is covered under the Agency’s surety bond.
Include evidence of coverage under the Agency’s bond; or
(e) None of the above. Attach proof that the independent contractor
maintains a surety bond in a sufficient amount as provided above. Attach
a written acknowledgment from the independent contractor agreeing to allow
the United States Trustee or his/her designee to audit the trust accounts
maintained by the independent contractor and to review the independent
contractor’s internal controls and administrative procedures.
Section 8. Appendices
New applicants: Complete Appendices A, B, C, and D. Do not complete Appendix E.
Returning applicants: Complete Appendices A, B, C, D, and E.
Appendix A: Acknowledgments, Agreements, and Declarations in Support of
Application for Approval as a Nonprofit Budget and Credit Counseling Agency.
By executing and submitting the Application for Approval as a Nonprofit Budget and Credit
Counseling Agency, the Agency acknowledges and agrees to comply with the prohibitions,
limitations, and obligations set forth in Appendix A, Acknowledgments, Agreements, and
Declarations in Support of Application for Approval as a Nonprofit Budget and Credit
Counseling Agency.
Appendix B: Judicial Districts.
Check the box for each judicial district in which the Agency seeks approval. Each Agency is
responsible for ensuring that it complies with all applicable laws and regulations of the United
States and each state, district, commonwealth, or territory of the United States in which it
seeks approval from the United States Trustee.
After approval, the Agency must submit an amended application to add judicial districts. An
Agency that withdraws from any judicial district where it is approved must immediately
notify the United States Trustee in writing.
Appendix C: Business Locations.
List the Agency’s business locations and specify whether in-person services are available at
each listed location.
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Appendix D: Matrix of Current Counselors.
The Agency shall use only counselors who possess adequate experience providing
credit counseling, which means that each counselor either:
(a) 	holds a counselor certification and who has complied with all continuing
education requirements necessary to maintain his or her counselor certification;
or
(b) 	has successfully completed a course of study and worked a minimum of six
months in a related area such as personal finance, budgeting, or credit or debt
management. A course of study shall include training in counseling skills,
personal finance, budgeting, or credit or debt management. A counselor shall
also receive annual continuing education in the areas of counseling skills,
personal finance, budgeting, or credit or debt management.
Certification and experience. A counselor shall be deemed to have adequate training
and experience to provide credit counseling and budget analysis if the counselor is
certified by a recognized independent organization, or has successfully completed a
course of study acceptable to the United States Trustee and has worked a minimum of
six months in a related area, including personal finance, budgeting, and debt
management. The United States Trustee does not endorse any specific course or
certification program.
With regard to each counselor who has completed a course of study, attach a
statement to Appendix D setting forth the name and provider of the course, an outline
of the course materials, and the criteria for passing the course. With regard to each
counselor who is certified by an independent organization, attach a statement to
Appendix D setting forth the organization’s name, contact information, and the
criteria for obtaining the certification.
Criminal background checks. The Agency shall conduct a criminal background check
at least every five years for each person providing counseling services. A “criminal
background check” means a report generated by a state law enforcement authority
disclosing the entire state criminal history record, if any, of the counselor for whom
the criminal background check is sought, for every state where the counselor has
resided or worked during any part of the immediately preceding five years. If a
criminal background check is not available for, or is not authorized by state law in,
each of the states where the counselor has resided or worked during any part of the
immediately preceding five years, the Agency shall instead obtain at least every five
years a sworn statement from each counselor attesting to whether the counselor has
been convicted of a felony, or a crime involving fraud, dishonesty, or false statements.
The Agency shall not substitute a statement in lieu of a criminal background check
unless a criminal background check is not available for, or is not authorized by state
law in, each of the states where the counselor has resided or worked during any part of
the immediately preceding five years.
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The Agency shall not employ as a counselor anyone who has been convicted of any
felony or a crime involving fraud, dishonesty, or false statements, unless the United
States Trustee determines, upon review and in his or her discretion, the circumstances
warrant a waiver of this prohibition against employment.
Appendix E: Activity Report for Approved Credit Counseling Agencies.
Appendix E applies only to Agencies who have previously been approved by the United
States Trustee and are seeking re-approval. If the Agency has not yet been approved by the
United States Trustee as an approved Agency, do not submit Appendix E with the
application.
The relevant time periods for Appendix E are January 1-June 30 and July 1-December 31 of
each year. After the Agency has been approved, it must submit a completed Appendix E by
January 31 and July 31 of every year. Attach Appendix E for the most recent six-month period
when submitting an application.
Q16: Certificates issued at reduced cost. Include data only for fee reductions based on
ability to pay. Do not include reductions based on criteria independent of ability to
pay, such as arrangements with attorneys, referrals, or joint debtor discounts.
Section 9. Certification and Signature
The Agency has a continuing duty to promptly notify the United States Trustee of any
circumstances that would materially alter or change a response to any section of the
application, during the application process or otherwise. Notification must be in writing,
include all pages of the application and/or appendices that are affected by the change and a
newly executed “certification and signature.”
By signing the application, the Agency’s president, chairman, trustee, or other authorized
representative declares that he or she is authorized to complete the application on behalf of the
Agency; that he or she has read and knows the contents of the application and all enclosures
and attachments submitted; and that he or she affirms, under penalty of perjury, that all of the
representations and statements contained therein are true and correct to the best of that
individual’s knowledge, information, and belief.
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