CHARLESTON — Lawmakers are working on a bill that would require people in the credit counseling industry to be licensed by the state.

Sen. Joel Lourie, D-Richland, plans to introduce the legislation next week. He says his bill is a natural follow-up to the state’s 2003 predatory lending act, a law that protects mainly low-income and elderly customers from high-cost loans.

Consumers behind on payments often will seek credit counselors for advice and education about how to manage their money better. Sometimes, counselors will contact creditors on behalf of clients to work out new repayment terms that make it easier on the consumer.

Demand for credit counseling grew in the 1990s, leading to a large number of businesses pitching themselves as credit counselors and seeking a piece of what has become a $7 billion industry.

Many credit counseling services demand hefty upfront fees and make far-fetched promises, such as being able to fix a credit score. They often push clients toward debt-management plans even if a consumer can’t afford it or there’s a better option.

Danny Collins, deputy for regulatory enforcement at the state Office of Consumer Affairs, said the remedy is better regulation. He said that would mean credit counseling agencies would need to show they have some type of educational programs and materials and that their employees receive certification and at least 24 hours of education a year.