Some states are taking steps to crack down on corrupt credit counselors who usually leave their "customers" deeper in debt than before.

KOCO-TV in Oklahoma reported this week that state representative Mike Shelton is introducing a bill requiring all credit counselors doing business in the state to be licensed and bonded.

The lawmaker told the TV station that he became involved with the issue after hearing from a constituent who gave $1,200 to a phony credit counselor, only to receive no services in return and to end up in foreclosure.

One local woman, Jennifer Wallis of Consumer Credit Counseling Service, told the TV station that people sometimes call her organization having been fooled by people who called some other person "they thought was us." Wallis also said that the current batch of fraudsters is giving the legitimate counseling service a bad reputation.

Elsewhere, Connecticut attorney general announced an effort in his own state earlier this month to crack down on debt predators who take advantage of consumers who are their most vulnerable.

The Meriden Record-Journal noted that along with vowing to use existing laws to take on unscrupulous companies, he also offered a plan that includes a ban on advance fees from so-called debt reducers and a requirement that they provide clear explanations of their services.

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