Reb Nachman in fact dealt with this problem in his magnum opus but it is generally ignored.
In any case the fact that people give themselves a title does not mean that the rest of the Jewish people think anything good about them. On the contrary--they already have a bad reputation for ruining families and causing divorce, and their reputation gets worse by the day. Their actions speak louder than their words.
The problem however is a little different than the way Reb Nachman puts it. Or perhaps better said--Reb Nachman was right about the particulars but I believe he missed the global issue. That is to say he was right to identify most teachers of Torah as agents from the Dark Side. But the larger issue is why do people get attracted to them? This has to do with anti-nomianism. Anti Law. Secular society mainly says do what you like. but the spirit of man wants to soar above this world. So the Dark Side laws a trap such. So people that parade themselves as something higher and able to bring one higher in fact bring people into the very dungeons of the Dark Side itself.
[Solution is mainly to learn Torah on your own at home. There is also the fact that the NY Litvak Yeshivas tend to be about straight Torah. So given the possibility of learning in an authentic Lithuanian kind of yeshiva this warning would not apply. In fact if possible it is highly recommended to attend a decent Litvak yeshiva. I would have to say Ponovitch in Bnei Brak.