Debt Relief Industry

Canada Takes Swift Action Against Advanced Fee Debt Settlement Companies

Written by Steve Rhode

Dear Alberta and Manitoba,

Damn, that was fast.

Steve

I suppose it sure didn’t hurt have the entire FTC Telemarketing Sales Rule process done and dusted, but Canada is acting quickly to ban advanced fee debt settlement companies.

New regulations in Manatobia are effective in 12 days will prohibit any advanced fees charged to consumers before settlement and will limit fees to 10 percent of the debt owed.

Healthy Living, Seniors and Consumer Affairs Minister Jim Rondeau said, “We want to be sure that people already struggling with debt don’t find themselves paying large fees upfront with no guarantee the service will actually reduce their debt. Some consumers have found themselves worse off than before signing up for debt settlement.”

The swift action by Manitiba follows regulations by the province of Alberta that proved to be effective is curbing abuses as well.

In Alberta a debt management company can charge a one-time administration fee and if payments are made monthly a fee can be charged that is not more than 15 percent of the payment received from the consumer for distribution.

But settlement fees are limited to a single fee of no more than 10 percent of the debt owed. – Source


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READ  Canada Consolidation Order / Orderly Payment of Debt (OPD)



About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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