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 licenses 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.
QUOTES
“Ontario consumers need to have confidence that they’re getting what they pay for when purchasing debt settlement services. We’re going to introduce legislation that would protect some of our most vulnerable consumers from being taken advantage of, at a time when they need the most help.”
— Tracy MacCharles, Minister of Consumer Services MPP Pickering-Scarborough-East
“Ontarians work hard for their money. Why just give it away to a company that is going to take your up-front fee but not actually settle with your creditors? I’m pleased the Ontario government is strengthening protections for consumers looking for help from debt settlement companies”
— Gail Vaz-Oxlade, financial writer and host of “Til Debt Do Us Part”
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.
LEARN MORE
Read more about how the Ontario government protects consumers who use companies that offer debt settlement services. www.sse.on.gov.ca
Protect yourself against scams and fraud.
ontario.ca/consumer services
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