Credit Repair Toronto: Why Not?
Many people think it’s best to try a credit repair Toronto company before they investigate the Canadian insolvency process. I’m here to tell you that many of these companies are not acting in your best interest.
What do Dave Ramsey and Gail Vaz-Oxlade have to say?
Many are paid – and in some cases managed – by credit card companies. According to an article by financial guru Dave Ramsey:
“Some of these ‘counselling’ companies withhold credit card payments until the account is three to six months past due. Then, they contact the lender and negotiate to settle the bad debt…That’s how they get negotiated discounts on credit card debt. Card companies don’t settle on your debts when your payments are on time. These services are always a bad idea, and sometimes they’re a complete scam.”
Dave Ramsey isn’t the only one leery of credit repair Toronto companies. Gail Vaz-Oxlade writes:
“One of the big drawbacks of using a debt counselling or debt management company is that they don’t come with any serious advice, so people often fulfill their commitment and then go right back out and rack up their debt again.”
Does the Ontario government like credit repair Toronto companies?
The provincial governments have their own opinion. Most provinces have enacted legislation to try to thwart many of their shady practices. Stay away from credit repair Toronto companies. Do not be afraid to go to a Licensed Insolvency Trustee for a free consultation at the first sign of financial trouble. (See the picture at the bottom of this page for a special offer).
We have previously written blogs on the credit repair Toronto industry who have been preying on consumers for far too long. We’ve warned you about them in previous blogs:
- BEWARE OF DEBT SETTLEMENT COMPANIES – Read this blog to find out why
- THE LATEST ON DEBT SETTLEMENT COMPANIES
- DEBT SETTLEMENT COMPANIES FINALLY TAKEN TO TASK IN ONTARIO
In 2010, after a decade of massive growth in the U.S. debt settlement industry, the FTC brought in new regulations that effectively banned debt settlement companies and forced many of them to migrate north of the border. This resulted in 18 companies and 34 credit counselling providers offering debt settlement services in Ontario.
With ever-mounting numbers of complaints about unsuspecting consumers being taken advantage of by unscrupulous credit repair companies, the Ontario government has finally taken action and passed Bill 55.
What will Bill 55 do? It creates new standards of conduct for credit repair Toronto companies by:
- Banning them from charging upfront fees
- Limiting the number of fees consumers are charged and prohibiting the payment of fees before services are provided
- Requiring clear, transparent, and detailed contracts that include information about the effect of the contract on the consumer’s credit rating
- Requiring credit counsellors to disclose information to the consumer about how the organization is funded
- Establishing a 0-day cooling-off period, providing consumers more time to consider their agreements with companies
- Allowing the licenses of non-compliant companies to be revoked
If not credit repair Toronto companies, then what should YOU do?
Please stay away from credit repair Toronto companies! Rather, obtain a free consultation from a licensed insolvency trustee to understand the options available to you either as an alternative to bankruptcy or of bankruptcy itself. We are professionals, federally regulated, licensed and subject to a strict code of ethics. Our fees are regulated by the Federal Government and are usually much less than credit repair companies who make unsubstantiated claims. We can help; Starting Over, Starting Now you can live a debt-free life.
We have been able to help many individuals carry out a successful debt settlement program. It all began with debt counselling. The first step is a realistic household budget.
Successful completion of such a program will free you from the burden of your financial challenges to go on to live a productive, stress-free, financially sound life.
Call us today so you can get on the road to financial recovery immediately.
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