Government warns about debt settlement, credit counselling and debt repair companies

 

 

Government of Canada Warns Canadian with Debt Problems “Beware of too good to be true offers”.

 

Jan. 10 2012

The Financial Consumer Agency of Canada (FCAC) issued a warning to Canadian Consumers looking for debt reduction. ” Be very cautious about companies that claim they can negotiate a deal with your creditors.

These companies call them selves Debt Settlements, Debt Relief, Debt Negotiation, Credit Repair and Credit Counsellors. Many of them are moving in from the US with high pressure, aggressive sales tactics. Although not illegal, these companies are not licensed or legislated.

Canadians need to use caution and common sense whenever discussing financial items.

Often Canadian never see the debt reduction that is promised, as the creditor are not legally bound to negotiate the reduction of the debt. Very often the consumer ends up deeper in debt than when they started. Borrowing even more to pay the “Debt Settlement” company their fee, in advance of the negotiation.

Only Bankruptcy Trustees in Canada can protect you legally from your creditors. Don’t be fooled by any other group promising to protect you.

To read the entire CONSUMER WARNING