Borrower Beware

Anya Kamenetz

June 01, 2006

Anya Kamenetz is the author of Generation Debt, now out with Riverhead Books. More of her work can be found at AnyaKamenetz.com.

Over the past few weeks, several different news reports referred to an alarming trend that puts the American way of life at risk. No, it's not global warming—although that is too. It's personal debt. The good news is federal agencies are finally stirring on behalf of consumers, but citizens need to get involved too. Nothing short of comprehensive reform and education will get us back in the black.

On May 15 the IRS announced that they had revoked the tax-exempt status of every single one of 41 consumer-credit counseling services selected for auditing. In revenue, the audited agencies comprised 40 percent of a $1 billion industry.