How unlicensed life coaches are ruining lives and what you need to know
photo credit: Ashkan Forouzani
The life coaching industry has exploded in recent years, promising personal transformation, career breakthroughs, and emotional healing. But beneath the glossy marketing lies a troubling reality: unlicensed life coaches, operating without oversight or standardized training, are putting vulnerable people at risk - and in some cases, causing real harm.
Why are unlicensed life coaches a problem?
No regulation, no accountability
Unlike licensed therapists, life coaches in most states are not required to have any formal education, ethical training, or professional oversight. This lack of regulation means anyone can call themselves a life coach, regardless of their background or past conduct - even those who have lost professional licenses for serious ethical violations. When things go wrong, clients have little recourse as there’s no licensing board to file a complaint with, and most coaches lack professional liability insurance, making civil lawsuits for damages nearly impossible.
Encroaching on mental health care
Many unlicensed coaches blur the line between coaching and therapy, taking on clients with serious mental health conditions they are not qualified to treat. Reports include unqualified coaches diagnosing mental illness, giving advice on medications, and even managing crises like suicidality-actions that should be left to trained, licensed professionals. This can result in misdiagnosis, delayed treatment, or worsening of mental health issues.
Exploitation and abuse
There have been high-profile cases of coaches exploiting clients emotionally, financially, and even sexually. Some former therapists who lost their licenses for boundary violations or abuse have simply rebranded as life coaches and continued their harmful practices. Others use manipulative techniques such as gaslighting, emotional coercion, or cult-like exclusivity to control clients and isolate them from loved ones.
Unrealistic promises and financial harm
Unlicensed coaches often make grandiose claims guaranteeing miraculous results or instant transformations. Vulnerable clients, desperate for help, may spend thousands on programs, retreats, or ‘exclusive’ communities, only to find little real benefit and, in some cases, significant psychological or financial harm.
Real world consequences: stories and statistics
• Case studies: Investigations have revealed cases where former therapists, stripped of their licenses for unethical conduct, continued to exploit clients as life coaches, leading to severe emotional and psychological harm.
• Survey data: In Utah, about one-third of licensed therapists reported seeing clients who had been harmed by a life coach often through unqualified mental health advice, improper handling of crises, or dual relationships (including romantic or sexual involvement).
• Legal action: States like Utah have begun passing laws to crack down on unlicensed coaches who cross into therapy, but enforcement remains limited and the industry is still “all over the place,” with qualifications ranging from advanced degrees to no training at all.
How to Protect Yourself
Check qualifications
• Ask about education, certifications, and relevant experience.
• Verify if the coach has insurance and a clear contract outlining services and boundaries.
Watch for red flags
• Coaches who promise cures, make you feel isolated, or pressure you into uncomfortable actions are not acting ethically.
• Avoid anyone who claims to treat mental health conditions without a license or who reacts defensively to questions about their methods.
Know when to seek a therapist
• Coaching is not a substitute for therapy, especially if you have a mental health diagnosis, trauma history, or need crisis intervention.
Listen to loved ones
• If friends or family express concern about your coach or coaching group, take their feedback seriously and reassess the relationship.
The lack of oversight in the life coaching industry has created fertile ground for exploitation, abuse, and harm. While some coaches are ethical and effective, the risks posed by unlicensed, untrained, or unscrupulous individuals are real and well-documented. Until meaningful regulation is in place, consumers must exercise caution, do their homework, and know the difference between coaching and therapy. Your well-being and sometimes your life may depend on it.
Sources
Jenner Law – “Unregulated Life Coaching: A Call for Legal Oversight” discusses the risks of unregulated life coaching, including cases where former therapists with revoked licenses continued to practice as life coaches and caused harm to clients. Highlights the lack of regulation, absence of liability insurance, and challenges in holding coaches accountable for misconduct.
KSL.com – “New law aims to crack down on unlicensed life coaches practicing mental health therapy”reports on Utah’s new law targeting unlicensed life coaches who act as therapists. Details findings from a survey of licensed therapists, including examples of harm caused by unqualified coaches, such as diagnosing mental illness and dual relationships. Emphasizes the variability in qualifications and the presence of both ethical and unethical coaches.
KSL News (YouTube) – “New law aims to crack down on unlicensed life coaches practicing mental health therapy” Covers the same Utah law and includes interviews with therapists and regulators about the dangers of unqualified life coaches, including inappropriate practices and the need for consumers to verify coach qualifications.
HPSO – “Failure to differentiate between counseling and life coaching” a case study illustrating the risks when professionals fail to distinguish between therapy and coaching, especially with clients who have mental health diagnoses. Notes that life coaches are not regulated or subject to discipline under public health codes in many states.
Reddit (r/therapists) – “Dangers of unlicensed mental healthcare providers” a discussion among therapists outlining the risks of seeking help from unlicensed providers, including ineffective or harmful interventions, boundary violations, and lack of accountability for harm.
ProPublica – “Utah Life Coaches Aren’t Licensed. Should They Be Regulated?” Investigative article examining the lack of regulation for life coaches in Utah and nationwide. Provides examples of repeated violations by former therapists turned life coaches, the ineffectiveness of citations, and the ongoing risk to clients when coaches cross into mental health therapy without proper credentials.
