The federal agency is pulling compliance checks on each of some 743 credit counseling agencies, virtually all such agencies with or seeking tax-exempt status. After evaluating 110 applications, only three have been approved for tax-exempt status, 95 were not approved and 12 are pending. “Many offered little or no counseling or education and appeared to be primarily motivated by profit. In many instances, these agencies also served the private interests of related for-profit businesses, officers and directors,” the federal tax agency reported. The IRS says legitimate credit counseling organizations provide valuable services to those in need, but too many of them have used their tax-exempt status to circumvent consumer protection laws and take advantage of those who are already in financial distress.