NFCC Increases Debt Relief Program Eligibility While Recovering $1 Billion Using FICO Score Open Access Program
MWN-AI** Summary
The National Foundation for Credit Counseling (NFCC) has enhanced its debt relief initiatives through its collaboration with FICO, the organization behind the FICO® Score Open Access for Credit & Financial Counseling Program. This partnership seeks to improve financial well-being for consumers by providing innovative Debt Reduction Options (DROs). These programs afford eligible consumers the potential to repay 50-60% of outstanding debts under manageable terms, effectively serving as a safer alternative to for-profit debt settlement services.
With the backdrop of increasing credit card debt and financial strain impacting many Americans, NFCC’s DROs have shown promising results. Preliminary data from pilot programs indicate an 18% rise in the number of participants qualifying for these nonprofit debt repayment options. Moreover, NFCC’s participants experience an average credit score improvement of 50 points and a reduction of approximately $8,000 in revolving debt over 18 months.
The participation of eight major creditors and debt buyers further bolsters the efficacy of the DROs, providing consumers with a nonprofit avenue for financial relief. NFCC’s approach has yielded significant financial recoveries, reportedly recouping over $1 billion annually from distressed borrowers—often preventing bankruptcy or harmful settlements.
The initiative’s success has garnered NFCC a 2026 FICO® Decision Award for Financial Inclusion, highlighting its impact on expanding access to affordable debt relief solutions. As NFCC CEO Mike Croxson states, the collaboration with FICO empowers counselors to furnish comprehensive education and practical pathways toward financial stability. Furthermore, the launch of the WealthBuilder Program aims to ensure consumers emerge from debt with at least $400 in savings, enhancing their long-term financial health.
Together, NFCC and FICO are championing consumer trust and financial empowerment in a challenging economic landscape.
MWN-AI** Analysis
The recent announcement from the National Foundation for Credit Counseling (NFCC) regarding its expanded Debt Relief Options (DROs) presents a significant opportunity for investors interested in the financial counseling space. As household debts balloon, up 34% since 2021, more consumers are seeking reliable pathways out of financial distress. The NFCC's partnership with FICO® to offer DROs not only enhances its capabilities but also opens avenues for substantial financial recovery.
By allowing eligible consumers to repay 50-60% of their outstanding debt, NFCC demonstrates a commitment to sustainable financial solutions, enhancing consumer trust while simultaneously recovering over $1 billion annually from creditors. The integration of the FICO® Score Open Access Program means that consumers gain access to essential financial tools and advice, directly improving credit scores and reducing overall debt load — a proven formula for long-term financial health. Notably, a study from Ohio State University supports NFCC’s holistic approach, indicating lasting improvements in participants’ financial outcomes.
For investors, this collaboration signifies a robust model that combines nonprofit integrity with effective financial technology. With an average 50-point increase in credit scores for program participants and a decline in revolving debts by $8,000, the potential for scaling this initiative is clear. The active involvement of eight major creditors in DROs affirms its viability as a competitive alternative to for-profit debt settlement schemes, promising a safer environment for distressed consumers.
As the NFCC prepares to enhance access to its programs amid rising debt levels, those looking to invest in sustainable financial services should consider the NFCC and FICO partnership an attractive prospect. This initiative not only demonstrates a clear commitment to consumer financial health but also positions stakeholders favorably in an evolving debt relief landscape.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
America's largest nonprofit credit counseling organization launches new programs to help consumers pay off debt affordably and avoid costly debt settlement scams
Highlights:
- The National Foundation for Credit Counseling (NFCC) and its Member Agencies are participating in the FICO ® Score Open Access for Credit & Financial Counseling Program to power innovative Debt Reduction Options (DROs) that allow consumers to repay 50-60% of outstanding debt on sustainable terms
- Over a year and a half, the average participant’s credit score improved 50 points and revolving debt dropped $8,000
- Eight major creditors and debt buyers are participating in DROs, providing a nonprofit alternative to harmful for-profit debt settlement schemes
- NFCC has won a 2026 FICO ® Decision Award for Financial Inclusion
The National Foundation for Credit Counseling (NFCC), the nation’s largest nonprofit credit counseling network, is expanding access to safe, affordable debt relief through its ongoing collaboration with FICO and the FICO ® Score Open Access for Credit & Financial Counseling (C&FC) Program. The partnership provides NFCC’s 49 member agencies with enhanced tools, streamlined access to credit scores, and greater financial wellness resources for millions of consumers nationwide.
With credit card balances up 34% since 2021, many households are struggling with rising debt, limited savings, and high interest rates. To address these challenges, the NFCC has introduced Debt Reduction Options (DROs) — innovative repayment programs powered by FICO® Scores that allow eligible consumers to repay 50–60% of their outstanding balances on sustainable terms. DROs offer a safe alternative to for-profit debt settlement, which often leaves consumers deeper in financial distress.
Initial pilots show strong results, increasing the number of consumers eligible for nonprofit debt repayment programs by an average of 18%. To date, eight major creditors and debt buyers have adopted DROs, with thousands of consumers enrolled.
“Our mission is to open safe and affordable pathways toward financial health, and this collaboration with FICO helps us accelerate that work,” said NFCC CEO Mike Croxson . “FICO Score Open Access for Credit & Financial Counseling Program strengthens the tools NFCC-Certified Credit Counselors use to provide comprehensive education and practical, affordable repayment pathways. It’s about restoring trust and giving more people a clear route from debt to stability.”
According to a study conducted by Ohio State University, NFCC’s holistic counseling model has been statistically shown to improve financial outcomes for years after the session, including lowering total debt, boosting credit scores, and reducing delinquencies. Additionally, DROs help the NFCC recover more than one billion dollars annually in outstanding payments to creditors from distressed debtors who may have otherwise turned to bankruptcy or settlement.
Over a year and a half, the average participant’s credit score improved 50 points and revolving debt dropped $8,000.
NFCC also launched the WealthBuilder Program, designed to help consumers complete debt repayment with at least $400 in savings, a milestone linked to long term financial stability.
“NFCC’s recognition with a 2026 FICO Decision Award reflects the meaningful impact their nonprofit counseling model is having on consumers nationwide,” said Geoff Smith, vice president of B2C Scores at FICO . “Their work has expanded access to affordable, consumer safe debt solutions for households under significant financial strain. It’s a strong example of how FICO’s trusted analytics and NFCC’s mission driven leadership can come together to advance real financial inclusion.”
For its achievements, NFCC won a 2026 FICO ® Decision Award for Financial Inclusion .
“NFCC turned American indebtedness into an opportunity for financial empowerment,” said Shrimanth Adla, senior director, credit risk strategy and analytics, Comcast and one of the FICO Decision Awards judges. “Recovering millions of dollars for creditors while helping 18% more consumers access debt relief proves that smart technology and compassionate counseling can create win-win solutions in even the most challenging financial situations.”
About The National Foundation for Credit Counseling (NFCC):
Founded in 1951, the National Foundation for Credit Counseling (NFCC) is the oldest nonprofit organization dedicated to improving people’s financial well-being. Through a nationwide network of NFCC Certified Credit Counselors serving all 50 states and U.S. territories, NFCC advocates for and empowers millions of consumers to take control of their finances. Its nonprofit counselors provide personalized guidance on credit card debt, loans, housing decisions, money management, and overall financial health. For expert guidance and more information, call 800-388-2227 or visit www.nfcc.org .
Learn more at nfcc.org or visit ficoscore.com/cfc for information about the FICO ® Score Open Access for Credit & Financial Counseling Program.
About the FICO® Decision Awards
The FICO Decision Awards recognize organizations that are achieving remarkable success using FICO solutions. A panel of independent judges with deep industry expertise evaluates nominations based upon measurable improvement in key metrics; demonstrated use of best practices; project scale, depth and breadth; and innovative uses of technology. The 2026 judges are:
- Sam Abadir , research director, risk & compliance, IDC Financial Insights
- Shrimanth Adla , senior director, credit risk strategy and analytics, Comcast
- Manoj Agrawal , group editor, Banking Frontiers
- Courtney Haan , strategic product manager for fraud products, Velera (Previous Winner)
- Shelly Kramer , principal analyst at Kramer & Company and theCube Research
- Andy Lawrie , credit risk tech lead at Nationwide Building Society (Previous Winner)
- Lisa Morgan , technology journalist and contributor at InformationWeek
- Déborah Oliveira , founder and editor-in-chief at IT Forum
The winners of the FICO Decision Awards will be spotlighted at and win tickets to FICO® World 2026 , May 19-22, 2026, at the Signia By Hilton hotel, Orlando, Florida.
About FICO
FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, insurance, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 80 countries do everything from protecting 4 billion payment cards from fraud, to improving financial inclusion, to increasing supply chain resiliency. The FICO® Score, used by 90% of top US lenders, is the standard measure of consumer credit risk in the US and has been made available in over 40 other countries, improving risk management, credit access and transparency.
Learn more at https://www.fico.com/en.
Join the conversation at https://x.com/FICO_corp & https://www.fico.com/blogs/.
For FICO news and media resources, visit https://www.fico.com/newsroom .
FICO is a registered trademark of Fair Isaac Corporation in the U.S. and other countries.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260303354387/en/
Media Contact
press@FICO.com
FAQ**
How is the partnership between NFCC and Fair Isaac Corporation FICO expected to influence the consumer debt landscape in the coming years?
What specific metrics does Fair Isaac Corporation FICO use to evaluate the success of the Debt Reduction Options (DROs) program launched by NFCC?
How do the innovative repayment programs created by Fair Isaac Corporation FICO and NFCC compare to traditional debt settlement methods in terms of consumer outcomes?
In what ways does the FICO Score Open Access for Credit & Financial Counseling Program empower NFCC's member agencies to improve financial literacy among consumers?
**MWN-AI FAQ is based on asking OpenAI questions about Fair Isaac Corproation (NYSE: FICO).
NASDAQ: FICO
FICO Trading
-1.77% G/L:
$1452.82 Last:
65,281 Volume:
$1467.63 Open:
