Quality of Service Review of Credit Counseling Agencies

U.S. Department of Justice
Executive Office for United States Trustees
]
[insert address]
[insert date]
VIA ELECTRONIC MAIL
[insert email address]
[insert name
Title
Agency name
Address]
Re: 	Quality of Service Review of [insert Agency name]
Agency Number [insert number]
Dear [insert name]:
Pursuant to 28 C.F.R. §§ 58.20(p)(2) and 58.33(n)(2),1 which require approved credit
counseling agencies and debtor education providers to cooperate with inquiries by the United
States Trustee and the Executive Office for United States Trustees (“EOUST”), we have
commenced a Quality of Service Review (“QSR”) concerning your agency. I appreciate your
cooperation in our review.
The on-site portion of the QSR will take place during the week of [insert date
approximately 45 days from the date of the letter]. 	During that time, EOUST personnel will
visit your office to observe counseling sessions, interview management and staff, review books
and records, and otherwise ensure compliance with the requirements of 11 U.S.C. § 111 and 28
C.F.R. § 58.12 et seq.
Please provide copies of the documents set forth on the attached Appendix A on or before
[insert date approximately two weeks before visit]. Please provide written answers to the
questions set forth on the attached Appendix B at the same time. Please submit responsive
documents and written answers by electronic means (such as email or cloud storage) to my
attention at [insert email address]. By providing timely and complete responses to these
requests, you will enable us to complete portions of our review before the on-site portion of the
QSR, minimizing interruption of your daily operations.
1 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 and Application Procedures and Criteria for Approval of Providers of a
Personal Financial Management Instruction Course by United States Trustees, 28 C.F.R. §§ 58.25-58.36.

Agency No. [insert]
Page 2
During the on-site portion of the QSR, EOUST personnel will review certain documents
that we do not request you send in advance. I attach a list of those documents (Appendix C) and
request that you provide these documents for inspection upon the team’s arrival. I have also
attached a fillable Tax Information Authorization form and a Certification (certifying that all the
responses provided are true and correct), both of which will need to be completed and signed by
the appropriate agency representative.
Again, I appreciate your cooperation. If you have any questions or concerns, please do
not hesitate to contact me at [insert telephone number] or by email at [insert email address].
Please send a reply confirming receipt of this letter.
Very truly yours,
[insert name]
[insert title]
Attachments
cc: Juliet Drake
[insert other names]

Agency No. [insert]
APPENDIX A
Page 1
APPENDIX A
(Document Requests)
Copies of the following documents and a completed Appendix A should be provided by [insert
date]. Do not leave any document request unaddressed. If no responsive documents exist, please
write “No documents” or “Not applicable” next to the relevant request. If the responsive
documents exist but are not provided, please respond “No” and include a written explanation for
the omission on a separate sheet.
Please provide copies by electronic media unless other arrangements are made.
Document Description 	Provided? (Y/N)
1. 	For each state in which the agency operates, a copy of
a. 	the agency’s license or registration or
b. 	a legal opinion from counsel that neither licenses nor
registrations are necessary
2. 	A copy of the most recent IRS Form 990 or other tax return,
including Form 1120 if the agency is not tax-exempt pursuant to
section 501(c) of the Internal Revenue Code
3. 	Complete and return the attached Tax Information Authorization
form. This form is screen-fillable.
4. 	An organizational chart including the names of all supervisory and
management level employees
5. 	Resumes for all board members, officers, managers, and counselors
who have been newly employed during the past three years
6. 	Minutes of the Board of Directors meetings for the past three years
7. 	Financial records:
a. 	the most recent financial statement (balance sheet, income
statement and cash flow statements)
b. 	the most recent audited financial statement, including any trust
account audit

Agency No. [insert]
APPENDIX A
Page 2
8. 	Agency policies, procedures, and training manuals concerning
operations, including cash management and internal controls
9. 	Advertising, marketing, and promotional documents, whether
produced by the agency or a third party, and whether distributed to
the public at large or to individuals
10. 	All contracts, leases, and agreements in effect during the past three
years between the agency and any person or entity
This includes, without limitation,
a. 	referral agreements by or between the agency and any attorney
or law firm, whether compensated or uncompensated;
b. referral agreements by or between the agency and any
bankruptcy petition preparer, whether compensated or
uncompensated;
c. referral agreements by or between the agency and any other
entity, whether for the purpose of credit counseling and debtor
education, debt management plans, or another purpose, and whether
compensated or uncompensated
11. 	Documents evidencing the agency’s accreditation, if any
12. 	The Board of Directors’ conflict of interest policy
13. 	A list identifying by name each current credit counselor and for
each such counselor:
a. 	a copy of the counselor’s most recent criminal background
check, redacting the counselor’s Social Security number; and
b. 	the counselor’s most recent certification by the certifying
organization, if applicable
14. 	Agency policies, procedures, and training manuals concerning
counseling and educational services
15. 	Any and all client forms, whether or not produced by the agency or
a third party
If such forms are set forth on the internet, please provide the
Uniform Resource Locator (URL) for the web page on which the
forms are located and PDF copies of the forms.
16. 	The agency’s client disclosures

Agency No. [insert]
APPENDIX A
Page 3
17. 	The agency’s written fee schedule
18. 	The agency’s written fee waiver policy
19. 	Completed “Appendix E: Activity Report for Approved Credit
Counseling Agencies” for the most recent six month period
20. 	Articles of incorporation, by-laws, articles of merger or exchange,
articles of dissolution, and any and all amendments to the above
21. 	Applications for and certificates of membership in credit counseling
organizations or other organizations that promote the quality of the
agency
22. 	Debt Management/Repayment Plans only: A computation setting
forth the minimum amount of the agency’s required surety bonds
and employee bonding or fidelity insurance, or similar securities
If this request is inapplicable because the agency does not offer debt
management plans, please state accordingly.
23. 	Debt Management/Repayment Plans only: Proof of renewal of all
surety bonds, employee bonding or fidelity insurance, or similar
securities, including copies of individual state bonds
If this request is inapplicable because the agency does not offer debt
management plans, please state accordingly.
24. 	Debt Management/Repayment Plans only: Copies of any
agreements with debt management plan (DMP) service providers
with whom the agency has contracted to administer any part of its
DMP
If this request is inapplicable because the agency does not offer debt
management plans, please state accordingly.

Agency No. [insert]
APPENDIX A
Page 4
25. 	Debt Management/Repayment Plans only: A list of all financial
institutions in which funds are deposited, including
a. 	the name of the institution;
b. 	the branch location;
c. 	account number(s); and
d. 	a copy of the most recent monthly statement for each account
If this request is inapplicable because the agency does not offer debt
management plans, please state accordingly.

APPENDIX B
(Preliminary QSR Questions)
Written answers to the following questions should be provided by [insert date]. Do not leave any
question unaddressed. If the answer to any question is “none” or “not applicable,” please respond
by writing “None” or “Not Applicable.” For example, if your agency does not provide
counseling in person or by telephone, or does not offer debt management plans, please respond
“Not Applicable” to those questions.
If you need additional room, please attach a separate statement with the question number.
Please submit responses by electronic media unless other arrangements are made.
1. 	Identify all persons who participated in answering or who supplied information upon
which you relied in providing the documents requested in Appendix A or in answering
the questions below.
Business Organization
2. 	List each state in which the agency operates, including the applicable license or
registration number for each. If no license or registration is required, provide an
explanatory statement.
3. 	State whether the agency is tax-exempt pursuant to Internal Revenue Code section
501(c)(3) or another provision of the Internal Revenue Code.
4. 	State whether the agency currently is subject to examination or audit by the Internal
Revenue Service or any state or local governmental entity.
5. 	Identify by name all officers and directors and their positions. For each officer or
director, state:
a. 	the individual’s principal occupation and current employer (or, if retired, the
individual’s previous principal occupation);
b. 	whether the individual has ever been convicted of a felony or a crime involving
fraud, dishonesty or false statements; and
c. 	an itemized list of any compensation received by the individual from the agency
in the last 12 months (e.g., salary, benefits or business transactions with the
agency).
6. 	Provide the schedule for board of directors meetings for the past three years.
7. 	Provide a list and description for all litigation, mediation, arbitration, or state
enforcement action or regulatory audit during the preceding twelve months, including any

Agency No. [insert]
APPENDIX B
Page 2
judgments, dismissals (voluntary or involuntary), settlements, assurances of voluntary
compliance, and consent decrees.
Related Party Transactions
8. 	Identify the agency’s highest paid employees and highest paid independent contractors (if
any) and their current annual compensation or contractual payments.
9. 	Identify any asset transactions, contracts, leases, or other agreements in effect between
the agency and any of its officers, directors, highest paid employees or independent
contractors, or family members within the past three years. For each, describe
a. 	the asset(s) purchased or sold, or the nature of the contract, lease, or other
agreement;
b. 	the individual involved; and
c. 	the price paid for the asset(s), or the terms of the contract, lease, or other
agreement.
10. 	Identify any loans between the agency and any of its officers, directors, highest paid
employees or independent contractors, or family members within the past three years. For
each, describe
a. 	the amount of the loan;
b. 	the parties to the loan;
c. 	the loan terms and actual repayments; and
d. 	the date of approval by the Board of Directors.
11. 	Disclose any compensation or other benefits that agency officers, directors, highest paid
employees or independent contractors, or their immediate family members, receive from
any entity with which the agency conducts business, maintains any contracts, leases, or
other agreements, or has a referral relationship.
12. 	Identify all referral arrangements between the agency and attorneys, law firms or
document preparers (or similar entities) whether compensated or uncompensated, and
whether written or oral. For each such entity identified, provide the following
information:
a. 	a description of the relationship;
b. 	a description of the manner in which either the agency of the entity is
compensated;

Agency No. [insert]
APPENDIX B
Page 3
c. 	whether either the agency or the entity collects fees on behalf of the other and
then disburses the fees accordingly;
d. 	whether the agency permits the attorney, law firm or document preparer to
establish an account with the agency for purposes of billing, document upload or
download, or other functions, as well as a complete description of the account
services offered;
e. 	whether the agency permits the attorney, law firm or document preparer to
register, pay, or enter a payment code on behalf of the client before the client
takes the counseling;
f. 	whether the agency has any other financial relationship with the attorney, law
firm or document preparer, such as a landlord-tenant relationship; and
g. 	the agency’s policy, if any, regarding the reimbursement of fees to clients when
the client receives a full or partial fee waiver.
Financial Information
13. 	State whether the agency outsources any of its accounting or financial functions and
identify the entity or entities to whom it outsources such functions.
14. 	State whether the agency offers debt management plans or debt repayment plans to any
clients, whether pre-bankruptcy clients (pursuant to 11 U.S.C. § 109(h)) or not. If the
answer is “no,” continue to Item 16.
a. 	Does the agency offer debt management plans or debt repayment plans only to
clients who are not pre-bankruptcy clients (pursuant to 11 U.S.C. sec. 109(h)) or
does it offer such plans to all clients who seek budget or credit counseling,
whether for pre-bankruptcy purposes or not? If the answer is “all clients,”
continue to Item 16.
b. 	If the agency offers debt management plans or debt repayment plans only to
clients who are not pre-bankruptcy clients (pursuant to 11 U.S.C. § 109(h)),
explain in detail the process by which
i. 	the agency determines the client’s intention in seeking counseling (i.e.,
whether the client seeks counseling pursuant to 11 U.S.C. § 109(h) or not),
including the timing of such a determination;
ii. 	the agency responds to a request, from a pre-bankruptcy client, for
information concerning debt management plans or debt repayment plans;
and
iii. 	the agency maintains records concerning such clients.

Agency No. [insert]
APPENDIX B
Page 4
iv. 	The agency shall also describe any procedures or structures the agency
maintains to separate clients seeking pre-bankruptcy counseling from
aspects of the counseling process that promote the agency’s own debt
management plan or debt repayment plan services.
15. 	Provide a list of all financial institutions in which any client trust funds are deposited, and
provide the name of the institution(s), branch location, and account number(s).
Accreditation, Instructor Certification, and Qualification
16. 	State whether the agency belongs to any accrediting, industry, or trade associations, and
list each such entity.
17. 	State whether the agency’s accreditation with any organization has terminated for any
reason within the last three years and explain the circumstances.
18. 	List each counselor and
a. 	the counselor’s certification by a certifying entity, if any, and
b. 	the date of the counselor’s last criminal background check.
19. 	List the continuing education requirements for all certified counselors and describe the
procedures the agency has implemented to ensure that counselors obtain the required
continuing education.
Counseling Practices
20. 	Describe the process by which the agency provides credit counseling, including, without
limitation,
a. 	the process by which the agency enters into an agreement with a client to provide
credit counseling, and a list of any documents the agency provides the client in
connection with this agreement;
b. 	the nature of any initial intake with the client, including the process by which the
agency gathers personal information about the client for any client file, provides
required disclosures to the client, and establishes and verifies the client’s identity,
as well as a list of any documents the agency provides the client in connection
with this process; and
c. 	the substantive content of the credit counseling session, as well as a list of any
documents the agency provides the client in connection with the substantive
counseling session.
Agencies not offering internet or telephone counseling may skip to Item 23.

Agency No. [insert]
APPENDIX B
Page 5
21. 	For agencies offering telephone credit counseling, please also include the following
information:
a. 	the mechanism by which a client commences the telephone credit counseling
session (e.g., whether by dialing a telephone number, by making an appointment
with the agency for the agency to originate the call, or otherwise);
b. 	the identity verification process;
c. 	the substantive content of the telephone credit counseling session, as well as a list
of any documents the agency provides the client in connection with the
substantive counseling session; and
d. 	the means by which the agency ensures a minimum counseling duration,
including the means of timing the counseling session, the existence of a minimum
counseling duration, and the nature of agency records that permit quality control
regarding duration of counseling sessions.
22. 	Describe the process by which the agency provides internet credit counseling, including,
without limitation,
a. 	the mechanism by which a client commences the internet credit counseling
session;
b. 	the identity verification process;
c. 	the substantive content of the internet credit counseling session, as well as a list of
any documents the agency provides the client in connection with the substantive
counseling session;
d. 	the means by which the agency ensures a minimum counseling duration,
including the means of timing the counseling session, the existence of a minimum
counseling duration, and the nature of agency records that permit quality control
regarding duration of counseling sessions; and
e. 	the process by which the client interacts with a person providing counseling, as
well as the content of the client interaction with the counselor, and the timing of
the interaction.
23. 	Describe the nature of any follow-up sessions with clients, including any specific agency
procedures for follow-up.
24. 	State whether the agency or its personnel provide counseling to clients on behalf of other
credit counseling agencies or their personnel and
a. 	identify the other agency or agencies on whose behalf the agency provides
counseling;

Agency No. [insert]
APPENDIX B
Page 6
b. 	describe the process by which the agency receives and satisfies requests to
provide counseling on behalf of other agencies; and
c. 	describe whether the agency receives compensation for providing counseling on
behalf of other agencies, the nature and amount of such compensation, and
whether such compensation is paid by the client, the client’s representative, or the
other agency.
Fees and fee waivers
25. 	State the fees the agency charges clients (both individually and jointly), and disclose
a. 	any variances from the fee schedule for non-need based special circumstances,
such as agreements with attorneys, law firms, bankruptcy petition preparers, or
others;
b. 	any discount or other non-need based promotions the agency offers with respect
to its fees, whether offered to the general public or not; and
c. 	whether the agency includes fee reductions or discounts based on non-need based
arrangements when reporting fee waivers and reductions on “Appendix E:
Activity Report for Approved Credit Counseling Agencies.”
26. 	State the agency’s fee waiver policy, and describe:
a. 	the timing of the fee waiver determination (i.e., whether before or after the start of
counseling);
b. 	the documentation, if any, the agency requires, including any specific
requirements such as delivery in a certain format (e.g., by mail, fax, or internet),
and specific financial information such as tax returns, pay stubs, W-2 forms, or
utility bills; and
c. 	whether or not the agency withholds certificates at the completion of counseling
pending a fee waiver determination or pending payment from the client.
Certificate issuance
27. 	To the extent not already addressed in your responses to the above questions, describe the
process by which the agency issues certificates of completion of credit counseling to
clients or clients’ counsel.
a. 	Describe the manner in which the agency generates the certificate of completion
or accesses the Certificate Generation System. To the extent the agency generates
the certificate other than by requiring the counselor who provided the counseling
to log in, input data, and issue a certificate, please describe the certificate issuance
process in detail.

Agency No. [insert]
APPENDIX B
Page 7
b. 	State whether the counselor who provides the counseling is also responsible for
issuing the certificate.
c. 	Describe the mechanism for transmitting certificates of completion of credit
counseling to clients or clients’ counsel.
d. 	State whether the agency or its personnel issues or has ever issued certificates on
behalf of other credit counseling agencies or their personnel and
i. 	identify the other agency or agencies on whose behalf the agency issues or
issued such certificates;
ii. 	describe the process by which the agency receives and satisfies requests
for issuance of certificates on behalf of other agencies; and
iii. 	describe whether the agency receives or received compensation for issuing
certificates on behalf of other agencies, the nature and amount of such
compensation, and whether such compensation is paid by the client, the
client’s representative, or the other agency.
Recordkeeping
28. 	Describe the procedures the agency has established for maintaining client files, including
a description of the required or expected contents for a complete client file.
29. 	Describe the agency’s recordkeeping policies and procedures regarding credit counseling
sessions, including, without limitation:
a. 	whether the agency records, in electronic or analog format, telephone counseling
sessions with clients, any policies or procedures concerning storage and disposal
of such records, and the location of any such records;
b. 	whether the agency maintains, in electronic or paper format, copies of electronic
correspondence with clients, and any policies or procedures concerning storage
and disposal of such records, and the location of any such records;
c. 	whether the agency maintains, in electronic or paper format, copies of paper
correspondence with clients, and any policies or procedures concerning storage
and disposal of such records, and the location of any such records;
d. 	whether the agency maintains its own internet server for purposes of internet and
credit counseling, or whether the agency uses a third-party web hosting service
for such purposes; and
e. 	regarding (d), state the location of any internet server the agency uses for
purposes of internet credit counseling.

Agency No. [insert]
APPENDIX B
Page 8
Client satisfaction and access
30. 	Describe any procedures the agency has developed for measuring counseling
effectiveness and customer satisfaction.
31. 	State the agency’s policy regarding assisting clients with limited English proficiency.
32. 	Describe the agency’s policies and procedures in place during the past year relating to
intake, processing, and resolution of complaints received concerning its credit counseling
and debtor education services, including, without limitation:
a. 	the agency’s policies and procedures concerning storage, retention, and disposal
of paper or electronic mail evidencing such complaints;
b. 	the agency’s policies and procedures concerning creation and maintenance of
business records or logs documenting telephone complaints; and
c. 	the agency’s policies and procedures concerning storage, retention, and disposal
of documents evidencing the agency’s responses to such complaints.

Agency No. [insert]
APPENDIX C
(Document List)
The following documents should be made available for inspection upon the QSR team’s arrival on
[insert].
Document Description
1. 	Correspondence files from the past two years for
a. 	regulatory agencies (both state and federal, including without limitation the IRS,
state taxing authorities, state attorneys general, and secretaries of state);
b. 	complaints;
c. 	credit counseling associations; and
d. 	membership and accrediting organizations
2. 	Litigation, mediation, and arbitration files from the past two years
3. 	The Agency’s general ledger for the past two years
4. 	Payroll and personnel records and supporting documents from the past two years,
including, without limitation,
a. 	background checks;
b. 	employee certifications;
c. 	employment contracts or agreements;
d. 	personnel evaluations;
e. 	bonus and pension plans;
f. 	training records;
g. 	disciplinary records; and
h. 	resumes and employment applications
5. 	Individual client files, including recordings or transcripts of counseling sessions,
whether in electronic or paper format; internet service provider (ISP) records concerning
the client’s internet counseling session; counselors’ notes; receipts and disbursements;
and correspondence with the client or the client’s counsel
Upon arrival, EOUST personnel will provide a list of certificates numbers associated
with the client files to be produced.