Which federal law regulates credit counseling and debt management services?

The Credit Repair Organizations Act is the federal law that specifically addresses credit counseling and debt management services. This legislation was enacted to protect consumers from unfair or deceptive practices by credit repair organizations. It establishes guidelines for how these organizations must operate and requires them to provide consumers with important disclosures about their rights and the services they offer.

This act also includes provisions that require credit counseling services to be transparent about their fees and the results that clients can reasonably expect from their services. By regulating these entities, the law aims to ensure that consumers are treated fairly and without exploitation, promoting ethical practices within the credit counseling sector.

The other options, while important in their own contexts, do not specifically regulate credit counseling or debt management services in the same way. For example, the Fair Credit Reporting Act deals primarily with the accuracy and privacy of credit reporting, while the Truth in Lending Act focuses on the disclosure of credit terms. The Bankruptcy Abuse Prevention and Consumer Protection Act addresses issues related to bankruptcy practices but does not encompass regulation of credit counseling services.