With consumer debt and bankruptcies on the rise, it’s no surprise that credit counseling and debt management agencies are growing in record numbers. According to experts, there are now more than 1,000 agencies across the country, up from 200 a dozen years ago.

While many agencies are legitimate, the practices of others are gaining increasing attention from regulators and the media, especially since regulations vary from state to state. Complaints include charging consumers excessive fees and failing to forward payments to creditors on time, resulting in late fees and other penalties that put the client in even more debt. Many of these firms are out-of-state or national companies that are advertising in Maine, but are not licensed to do business in Maine.

A legitimate agency can help many consumers to manage and recover from serious debt without the stigma or consequences of bankruptcy. But with so many agencies to choose from, Maine consumers looking for a credit counseling and debt management agency should do their homework. They should ask how long an agency has been in business, and check if any complaints have been filed with the Better Business Bureau or state attorney general. An affiliation with a reputable national organization like the National Foundation for Credit Counseling helps assure quality standards and good customer service, as does a license to do business in Maine.

A legitimate credit counseling service has certified counselors who are knowledgeable in basic money management services. Counselors are trained to assist with debt reduction and financial planning, often for free or at minimal cost, based on a sliding scale. They can analyze credit reports and make recommendations on how to resolve credit problems. Most importantly, certified counselors can evaluate debt and help set up a repayment plan with the cooperation of creditors.

With a subject as complicated as personal finance, it’s usually best to meet in person with a counselor. For many consumers, money management is a tricky subject that they may not want handled over the phone by someone several states away.

A good agency will provide money management and budget counseling services in addition to debt management services. Developing a plan to address all debt obligations, not just credit cards, helps to ensure that the debt crisis will not reoccur.

Consumers should ask about fund management and safety. Agencies should fully disclose all fees and charges up front, explain how funds will be collected and dispersed to creditors and whether they will be fully credited to the client. It’s also important to ask what policies are in place to assure protection of funds.

There are alternatives for consumers in debt crisis. With expert assistance, planning and discipline, bankruptcy can often be avoided. But over the past 12 years, credit counseling and debt management agencies have quadrupled. There are some good players, but plenty of questionable ones too. As in many other service industries, consumers should beware.

Rick Dobson is the president of Consumer Credit Counseling Services, a professionally accredited, nonprofit organization serving Maine consumers.