Are you looking for professional debt help? Before connecting with an advisor, read on to learn about debt management services in British Columbia and understand some of the regulatory gaps that can have serious impacts to consumers looking for debt advice.<\/p>\n\n\n\n
There are two types of debt help professionals in Canada: Licensed Insolvency Trustees and informal debt service providers, who may use many different titles.<\/p>\n\n\n\n
Licensed Insolvency Trustees<\/u>: Established as Canada\u2019s only official debt help professionals and the people who can administer legal solutions that allow you to have some, or all your debts forgiven.<\/p>\n\n\n\n Consumer Proposals are an advantageous debt solution of choice for people who may have previously considered filing for bankruptcy, or are looking at costly consolidation loans to manage their debt.<\/p>\n\n\n\n Book your free consultation with one of our experts and start living a debt-free life.<\/p>\n \n BOOK YOUR FREE CONSULTATION <\/a>\n <\/div>\n <\/div>\n<\/div>\n\n\n\n Credit Counsellors<\/u>: May offer different types of debt help services through for-profit and non-profit organizations.<\/p>\n\n\n\n Debt Consultants<\/u>: These agents may operate in a few ways, one by offering debt settlement services like a credit counselling repayment plan, another is by acting as an agent for a person who wants to work with a Licensed Insolvency Trustee<\/a> on a Consumer Proposal.<\/p>\n\n\n\n \u201c\u2026<\/em>the profit orientation of an organization\u2014whether for-profit or not-for-profit\u2014does not dictate the quality or ethicality of its business practices or behaviors. Non-profit organizations are different from charitable organizations….\u201d <\/em>\u2013 Government of Canada position paper: The Adverse Effects of the Debt Advisory Marketplace on the Insolvency System <\/em><\/p>\n\n\n\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n \n\n<\/blockquote>\n\n\n\n Insolvency filings across the country are on the rise as consumers face a slew of financial challenges contributing to problem debt. At the same time, the Government of Canada has published observations<\/a> about debt advisor services, flagging specific concerns about the risks unregulated advisors pose, especially where consumers are looking for Consumer Proposals and bankruptcy relief.<\/p>\n\n\n\n Should I Work with a Debt Settlement Agent or Credit Counsellor? What\u2019s the Difference?<\/a><\/p>\n\n\n\n Book your free consultation with one of our experts and start living a debt-free life.<\/p>\n \n BOOK YOUR FREE CONSULTATION <\/a>\n <\/div>\n <\/div>\n<\/div>\n\n\n\n Over the years consumers have endured predatory unlicensed debt services such as scammy companies operating US-based debt pooling, shady agents charging huge upfront fees without results, misleading quick-repair credit rebuilding services and more. Unfortunately, official efforts to curb these issues take time to have an impact and sadly, many consumers suffer the adverse effects before then.<\/p>\n\n\n\n Issues that have recently caught the Federal Government\u2019s eye involve the debt advisory marketplace, and its impact in the insolvency system. There are several concerns within the industry, including consumers being sold and charged for what may be dishonest and less than transparent services, including:<\/p>\n\n\n\n Consumers do not need a third party\u2019s services to safely access impartial advice and solutions through a Licensed Insolvency Trustee.<\/strong> If you hire another advisor for services related to your Consumer Proposal or bankruptcy, understand these are completely unnecessary add-on services, and offered by agents who are not qualified to administer the Consumer Proposal or bankruptcy for you. <\/em><\/p>\n\n\n\n Consumer Proposals are not loans and require no insuring, they are a legal type of debt consolidation solution only a Licensed Insolvency Trustee can administer for you.<\/strong> If you are offered or encouraged to use any type of financing to complete a Consumer Proposal, understand this is not only unnecessary, but counter-productive to cost advantages of a Consumer Proposal (namely, consolidation without borrowing or interest and stopping previous interest charges from accumulating).<\/p>\n\n\n\n\n \u201cDebt advisors may make claims that are false and misleading. They may position themselves as advocates for the debtor, implying that without their intervention, the debtor will not be treated fairly, or that the LIT will only represent the creditors\u2019 interests.\u201d <\/em>\u2013 Government of Canada position paper: The Adverse Effects of the Debt Advisory Marketplace on the Insolvency System<\/p>\n<\/blockquote>\n\n\n\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n \n\n\n\n\n The best thing to do is simply ask \u201cAre you a Licensed Insolvency Trustee?\u201d. You can also use the Government of Canada\u2019s \u201cfind an active Licensed Insolvency Trustee<\/a>\u201d directory, and if you\u2019re located in British Columbia, Sands & Associates can help you<\/a>.<\/p>\n\n\n\n Book your free consultation with one of our experts and start living a debt-free life.<\/p>\n \n BOOK YOUR FREE CONSULTATION <\/a>\n <\/div>\n <\/div>\n<\/div>\n\n\n\n If you\u2019re looking for debt help online, be aware that advertising can be misleading \u2013 \u2018government approved\u2019 \u2018licensed\u2019 and \u2018fast credit repair\u2019 are all examples of this. Beyond options a Licensed Insolvency Trustee offers, there is no government debt \u2018program\u2019, and \u2018quick credit repair\u2019 simply doesn\u2019t exist.<\/p>\n\n\n\n Understanding Credit Reports and Scores in Canada \u2013 Learn More<\/a><\/p>\n\n\n\n\n If you speak with an unregulated debt agent, credit counsellor, etc., be aware that some will attempt to use high-pressure sales tactics to talk you into taking out a loan, setting up a debt settlement plan, or purchasing other services that are unnecessary \u2013 or they may even suggest that you take on more debt to pay their fees.<\/p>\n\n\n\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n \n\n\n\n\n If you choose to take advice from or work with any sort of debt help professional other than a Licensed Insolvency Trustee<\/em>, there are considerable gaps in regulations and consumer protection.<\/p>\n\n\n\n Book your free consultation with one of our experts and start living a debt-free life.<\/p>\n \n BOOK YOUR FREE CONSULTATION <\/a>\n <\/div>\n <\/div>\n<\/div>\n\n\n\n\n \n
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Misleading Debt Services Being Sold to Consumers<\/h2>\n\n\n\n
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Am I Working with a Licensed Insolvency Trustee?<\/strong><\/h3>\n\n\n\n
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Recap \u2013 Key Takeaways for Consumers Seeking Qualified Debt Advice<\/h2>\n\n\n\n
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