The hot line was in the works long before the General Assembly passed legislation this year that allowed for-profit companies to provide debt management services to Marylanders. Debt management involves a counseling agency working out a repayment plan for consumers with their credit card issuers. For years, only nonprofits could provide this service.
The new law took effect this month, but it may be months before for-profits start serving Marylanders because the companies must first be licensed by the state.
Smith-Ramani says consumer advocates have worried that for-profits will sell consumers unnecessary products, one reason why they wanted to work with a nonprofit on the hot line.
Godfrey's group offers debt management, but waives fees for this service for those who can't afford them.
"We don't have any for-profit motive," Godfrey says.
The credit counseling agency will be able to track the type of questions it gets on the hot line. The CASH Campaigns will use the information to develop programs targeting those areas where consumers need the most help, Smith-Ramani says.
Godfrey's nonprofit isn't being paid for the extra work. And what if his group is handling so many calls that it has to hire more counselors?
"I hope so," Godfrey says. "If we do, that means we have been successful."
To suggest a topic, contact Eileen Ambrose at 410-332-6984 or by e-mail at eileen.ambrose@baltsun.com.
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