A new law will help consumers seeking credit counseling avoid those who claim to be “non-profit” agencies, when in fact, they are profiteers. However, the new law doesn’t take effect until next year. As reported by KOMO News Radio in Seattle, “…for now if you respond to a credit counseling ad, chances are you'll get someone looking to make a profit at your expense.”

This law follows years of abuse by so-called debt counselors and credit counselors who took large fees from consumers and then in some cases, did not pay a dime to creditors until they got paid.

On paper, the law sounds like it could work.

Under the new law, credit counselors will also have to do a complete review of your debt and income situation and your living expenses -- and tailor a plan that suits your financial needs so consumers who need help will be able to stick to a budget, get budgeting and debt management classes….

Will it work? Time will tell. But until the new law takes effect next year, please do your homework before selecting a credit counselor.