Strenghten Rules for Debt Services

Strenghten Rules for Debt Services

Ontario is taking steps to provide vulnerable consumers with protection against unfair business practices of some companies that offer debt settlement services.

As part of the province’s continuing commitment to strengthen consumer protection, the Ontario government intends to introduce legislation that, if passed, would impose new rules for debt settlement services, including:

• Banning companies from charging upfront fees for debt settlement services

• Limiting the total amount of fees consumers are charged

• Requiring clear, easy-to-understand contracts

• Establishing a 10-day cooling-off period, providing consumers more time to consider their agreements

• Allowing the licences of non-compliant companies to be revoked These proposed reforms would help protect the rights of consumers and are part of the new Ontario government’s commitment to building a strong economy and a fair, safe and informed marketplace.

QUICK FACTS

• Ontario is joining other provinces like Alberta and Manitoba that regulated companies offering debt settlement services.

• There are currently 22 companies and 38 credit counselling providers offering debt settlement services in Ontario.

• The average consumer debt in Ontario is more than $25,000 per person.                

(PRESS RELEASE)