Compliance

The IAPDA requires adherence to this Code by all those it recognizes and certifies to use its designations. Compliance with the Code, individually and by the profession as a whole, depends on each CDS and CCCS professional's knowledge of and adherence to the Principles and applicable Rules, the influence of fellow professionals and public opinion, and disciplinary proceedings, when necessary, involving CDS and CCCS professionals who fail to comply with the applicable provisions of the Code.

Part I - Principles
Introduction
These Principles of the Code recognize the individual CDS and CCCS professional's responsibilities to the public, clients, colleagues, employers and to the profession. They apply to all CDS and CCCS professionals in all aspects of their work, and provide specific guidance to them in the performance of debt settlement.

Principle 1: Integrity
A CDS and CCCS professional shall always act with integrity.

CDS and CCCS professionals may be placed by clients in positions of trust and confidence. The ultimate source of such public trust is the CDS and CCCS professional's personal integrity. In deciding what is right and just, a CDS and CCCS professional should rely on his or her integrity as the appropriate touchstone. Integrity demands honesty and candor that must not be subordinated to personal gain and advantage. Within the characteristic of integrity, allowance can be made for legitimate difference of opinion; but integrity cannot co-exist with deceit or subordination of one's principles. Integrity requires the CDS and CCCS professional to observe not only the letter but also the spirit of this Code.

Principle 2: Objectivity
A CDS and CCCS professional shall be objective in providing debt settlement services to clients.

Objectivity requires intellectual honesty and impartiality. It is an essential quality for any professional. Regardless of the particular service rendered or the capacity in which a CDS and CCCS professional functions, a CDS and CCCS professional should protect the integrity of his or her work, maintain objectivity, and avoid the subordination of his or her judgment, which would be in violation of this Code.

Principle 3: Competence
A CDS and CCCS professional shall provide services to clients competently and maintain the necessary knowledge and skill to continue to do so in those areas in which the CDS and CCCS professional is engaged.

One is competent only when one has attained and maintained an adequate level of knowledge and skill, and applies that knowledge effectively in providing services to clients. Competence also includes the wisdom to recognize the limitations of that knowledge and when consultation or client referral is appropriate. A CDS and CCCS professional, by virtue of having earned the CDS and CCCS designation, is deemed to be qualified to practice debt settlement. However, in addition to assimilating the core competencies and knowledge required, and acquiring the necessary experience, a CDS and CCCS professional shall make a commitment to continuous learning and professional development.

Principle 4: Fairness
A CDS and CCCS professional shall perform debt settlement in a manner that is fair and reasonable to debtor clients, creditors, collectors, and collection attorneys and shall disclose conflicts of interest in providing such services.

Fairness requires impartiality, intellectual honesty, and disclosure of conflicts of interest. It involves a subordination of one's own feelings, prejudices, and desires so as to achieve a proper balance of conflicting interests. Fairness is treating others in the same fashion that one would want to be treated and is an essential trait of any professional.

Principle 5: Confidentiality
A CDS and CCCS professional shall maintain confidentiality of all client information.

A client, by seeking the services of a CDS and CCCS professional, expects to develop a relationship of personal trust and confidence. This type of relationship must be built upon the understanding that information supplied to the CDS and CCCS professional will be confidential. In order to provide debt settlement effectively and to protect the client's privacy, the CDS and CCCS professional shall safeguard the confidentiality of such information.

Principle 6: Professionalism
A CDS and CCCS professional's conduct in all matters shall reflect credit upon the profession.

A CDS and CCCS professional shall behave in a manner that maintains the good reputation of the profession and its ability to serve the public interest. A CDS and CCCS professional shall avoid activities that adversely affect the quality of his or her debt settlement advice.

Principle 7: Diligence
A CDS and CCCS professional shall act diligently in providing debt settlement.

Diligence is the provision of services in a prompt and thorough manner. Diligence also includes proper planning for and supervision of the rendering of professional services.

Part II - Rules
Introduction
These Rules provide practical guidelines derived from the tenets embodied in the Principles. As such, the Rules set forth the standards of ethical and professionally responsible conduct expected to be followed in particular situations.

Principle 1: Integrity
A CDS and CCCS professional shall always act with integrity.

Rule 101 - A CDS and CCCS professional shall not engage in or associate with conduct involving dishonesty, fraud, deceit or misrepresentation, or knowingly make a false or misleading statement.

Rule 102 - A CDS and CCCS professional has the following responsibilities regarding funds and/or other property of clients:

Rule 103 - A CDS and CCCS professional shall not solicit clients through false or misleading communications or advertisements, and for greater certainty:

Principle 2: Objectivity
A CDS and CCCS professional shall be objective in providing debt settlement to clients.

Rule 201 - A CDS and CCCS professional shall exercise reasonable and prudent professional judgment in providing debt settlement.

Rule 202 - A CDS and CCCS professional shall act in the interests of the client. 

Principle 3: Competence
A CDS and CCCS professional shall provide debt settlement to clients competently and maintain the necessary competence and knowledge to continue to do so in those areas in which the CDS and CCCS professional is engaged.

Rule 301 - A CDS and CCCS professional shall offer advice only in those areas in which the CDS and CCCS professional is competent to do so. In areas where the CDS and CCCS professional is not sufficiently competent, the CDS and CCCS professional shall seek the counsel of qualified individuals and/or refer clients to such parties.

Rule 302 - A CDS and CCCS professional shall abstain from intervening in the personal affairs of the client on matters outside the scope of the engagement. 

Principle 4: Fairness
A CDS and CCCS professional shall perform debt settlement in a manner that is fair and reasonable to debtor clients, creditors, collectors, and collection attorneys, and shall disclose conflicts of interest in providing such services.

Rule 401 - A CDS and CCCS professional shall make timely written disclosure of all material information relative to the professional relationship. Written disclosures that include the following information are considered to be in compliance with this Rule:

Rule 402 - In rendering services that do not encompass debt settlement, a CDS and CCCS professional shall inform the client of the scope of the services that shall be rendered and that the CDS and CCCS professional is not taking on the responsibilities of a financial planner. Such understanding obtained at the start of a relationship need be updated only when the nature of the services to be performed changes.

Rule 403 - A CDS and CCCS professional shall inform the client of changes in circumstances and material information that arise subsequent to the original engagement that may have an impact on the professional relationship or services to be rendered. Such changes include, but are not limited to:

Rule 404 - Where debt settlement may be compensated for on a contingency fee basis, such a fee arrangement must be disclosed in writing to the client.

Rule 405 - A CDS and CCCS professional shall not engage in discriminatory practices as defined in applicable human rights legislation.

Principle 5: Confidentiality
A CDS and CCCS professional shall maintain confidentiality of all client information.

Rule 501 - A CDS and CCCS professional shall not disclose any confidential client information without the specific consent of the client unless in response to proper legal or regulatory process. A client's name shall not be disclosed to another party unless specific consent has been granted for the use of the client as a reference.

Rule 502 - A CDS and CCCS professional is bound to professional secrecy and may not disclose confidential information revealed by reason of his or her position or profession unless required by law.

Rule 503 - The use of client information for personal benefit is improper, whether or not it actually causes harm to the client.

Rule 504 - A CDS and CCCS professional shall maintain the same standards of confidentiality for employers as for clients while employed and thereafter.

Rule 505 - A CDS and CCCS professional doing business as a partner or principal of a debt settlement firm owes to the CDS and CCCS professional's partners or co-owners a responsibility to act in good faith. This includes, but is not limited to, adherence to reasonable expectations of confidentiality both while in business together and thereafter. 

Principle 6: Professionalism
A CDS and CCCS professional's conduct in all matters shall reflect credit upon the profession.

Rule 601 - A CDS and CCCS professional shall not engage in any conduct that reflects adversely on his or her integrity or fitness as a CDS and CCCS professional, upon the designations, or upon the profession.

Rule 602 - A CDS and CCCS professional shall use the designations in compliance with the rules and regulations of IAPDA, as established and amended from time to time.

Rule 603 - A CDS and CCCS professional who has knowledge that another CDS and CCCS professional has committed a violation of this Code, which raises substantial questions as to the CDS and CCCS professional's honesty, trustworthiness or fitness as a CDS and CCCS professional in other respects, shall promptly inform IAPDA. This rule does not require disclosure of information or reporting based on knowledge gained as a consultant or expert witness in anticipation of or related to litigation or other dispute resolution mechanisms. For purposes of this rule, knowledge means no substantial doubt.

Rule 604 - A CDS and CCCS professional shall not criticize another CDS and CCCS professional without first submitting this criticism to the CDS and CCCS professional for explanation. Where the criticism may result in a complaint being lodged with IAPDA, the CDS and CCCS professional must, where required, first submit that criticism in writing to the other CDS and CCCS professional for explanation. Notwithstanding this rule, a CDS and CCCS professional may first submit a criticism of another CDS and CCCS professional to IAPDA, should the matter be considered of such a nature that prior notice is not appropriate.

Rule 605 - A CDS and CCCS professional who has knowledge that raises a substantial question of unprofessional, fraudulent or illegal conduct by a CDS and CCCS professional or other financial professional, shall promptly inform the appropriate regulatory and/or professional disciplinary body. This rule does not require disclosure or reporting of information gained as a consultant or expert witness in anticipation of, or related to litigation or other dispute resolution mechanisms. For purposes of this Rule, knowledge means no substantial doubt.

Rule 606 - A CDS and CCCS professional who has reason to suspect illegal conduct within the CDS and CCCS professional's organization shall make timely disclosure of the available evidence to the CDS and CCCS professional's immediate supervisor and/or partners or co-owners. If the CDS and CCCS professional is convinced that illegal conduct exists within the CDS and CCCS professional's organization, and that appropriate measures are not taken to remedy the situation, the CDS and CCCS professional shall, where appropriate, alert the appropriate regulatory authorities including IAPDA in a timely manner.

Rule 607 - A CDS and CCCS professional shall perform debt settlement in accordance with applicable laws, rules, regulations and established policies of governmental agencies or other applicable authorities including IAPDA.

Rule 608 - A CDS and CCCS professional shall not adopt any method of obtaining or retaining clients that tends to lower the standard of dignity of the profession.

Rule 609 - A CDS and CCCS professional shall not practice any other profession or offer to provide such additional services unless the CDS and CCCS professional is qualified to practice in those fields and is licensed or registered as required by law.

Rule 610 - A CDS and CCCS professional shall return the client's original records in a timely manner after their return has been requested by the client.

Rule 611 - A CDS and CCCS professional shall not bring or threaten to bring a disciplinary proceeding under this Code, or report or threaten to report information to IAPDA pursuant to Rules 602 or 603 or make or threaten to make use of this Code for no substantial purpose other than to harass, maliciously injure, embarrass and/or unfairly burden another CDS and CCCS professional. 

Principle 7: Diligence
A CDS and CCCS professional shall act diligently in providing debt settlement.

Rule 701 - A CDS and CCCS professional shall enter into a client engagement only after securing sufficient information to be satisfied that the relationship is warranted by the individual's needs and objectives, and that the CDS and CCCS professional has the ability to either provide the requisite competent services or to involve and supervise other professionals who can provide such services.

Rule 702 - A CDS and CCCS professional shall make and/or implement only those recommendations that are suitable for the client.

Rule 703 - Consistent with the nature and scope of the engagement, a CDS and CCCS professional shall carry out a reasonable investigation regarding the financial services recommended to clients. Such an investigation may be made by the CDS and CCCS professional or by others provided the CDS and CCCS professional acts reasonably in relying upon such investigation.

Rule 704 - Before ceasing to act for a client, a CDS and CCCS professional shall give the client reasonable advanced notice of his or her intent and shall make sure the withdrawal will not prejudice the client.

Rule 705 - A CDS and CCCS professional shall properly supervise subordinates with regard to their delivery of debt settlement and consumer credit counseling, and shall not accept or condone conduct in violation of this Code.