Tag: fraud

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Brandon Blog Post

CONSUMER PROPOSAL CANADA: A BLUEPRINT TO STOP BILL COLLECTORS

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If you would prefer to listen to the audio version of this Consumer proposal Canada Brandon’s Blog, please scroll down to the bottom and click on the podcast.

Introduction

I have written before on the concept of how a bankruptcy filing puts into place a stay of proceedings. A section of the Bankruptcy and Insolvency Act (Canada) (BIA) states that creditors are not allowed to take or continue any collection or enforcement activity against a bankrupt person or company. But what about a consumer proposal Canada? I will discuss this concept for a consumer proposal and highlight a recent case on this issue.

The federal law

Under section 69.2 (1) of the BIA, with certain limited exceptions, when a consumer proposal is filed, “…no creditor has any remedy against the debtor or the debtor’s property, or shall commence or continue any action, execution or other proceedings, for the recovery of a claim provable in bankruptcy…”.

So if the claim is one that is provable in a bankruptcy, and therefore in a consumer proposal Canada, then the creditor cannot begin or continue a lawsuit or try to enforce a judgment for the amount owed.

A recent decision from the Ontario Court confirms this law where a consumer proposal Canada will stop creditors and bill collectors from starting or continuing legal action against you.

The facts of this case

The case is Yigzaw v. Ashagrie, 2019 ONSC 2474. It is about a motion to lift the stay of proceedings to permit enforcement of an order issued against the debtors who have filed a consumer proposal.

The applicants, Philipos Yigzaw and Aster Abraham, seek to appeal an order issued by the Court on February 21, 2017 (the 2017 order). The 2017 order was gotten on the basis of summary judgment on an application started by the applicants. In their application, they sought repayment of $102,500 that they had advanced to the respondents Anaketch Ashagrie and Yilma Gari to fund a business operating under the name “Telling Roses”. They also seek an accounting of how the funds had actually been spent.

The 2017 order required Ashagrie and Gari to pay $102,500 to Yigzaw and Abraham in addition to costs of $6,250. The respondents were likewise required to provide an accounting. The Court declined to issue a certificate of pending litigation against the respondents’ residence, although a writ of execution was issued. The respondents submitted a consumer proposal the very next day.

In this enforcement motion, the applicants state that the respondents have failed to adhere to the 2017 order. They look for relief that would require Ashagrie and Gari to be examined and to pay the amount of the judgment. They also want a finding that the respondents are in contempt.

The issues for the Court to consider

The Court first considered section 69.2 (1) of the BIA I spoke about above. The Court then looked at the exception I alluded to, being Section 69.4 of the BIA.

That section says that a Court may, in certain circumstances, raise the stay to allow a creditor to pursue its rights against a debtor who has filed consumer proposal. To obtain a lifting of the stay, the creditor must persuade the Court that it is most likely to be materially prejudiced by the ongoing stay, or that lifting the stay is equitable on other grounds.

Canadian courts have held that the criteria in s. 69.4 might be fulfilled where the creditor’s debt will not be released as an outcome of the insolvency process. The types of financial obligations that are not discharged are provided in s. 178( 1) of the BIA.

They consist of a debt or obligation arising out of fraud, embezzlement, misappropriation or defalcation while acting in a fiduciary capacity as well as a debt or obligation resulting from obtaining property or services by false pretenses or fraudulent misrepresentation. Lifting of a stay is not a routine matter.

To succeed, the applicants have to show how they are most likely to be materially prejudiced by the stay, or that there are various other equitable grounds to raise it.

In a typical motion under s. 69.4, the applicant looking to lift the stay says that it needs to have the opportunity to prove that its accusations come from an activity provided in s. 178( 1) to ensure that it may obtain a judgment against the bankrupt or insolvent person. If successful, then that claim would survive the insolvency process.

In that normal case, the Court examines the creditor’s claims to identify if the debt, if confirmed, would be released as an outcome of the bankruptcy or proposal. Sometimes, the Court may also consider evidence submitted by the creditor.

This case is uncommon because the applicants have already gotten a judgment on their claim. They are not seeking to show their claim. They are looking to enforce the Order. So the concern the Court must think about is whether that Order was made according to a cause of action listed in s. 178( 1 ). The Judge did this by reviewing the claims and evidence before the Judge who gave judgment, his analysis, and the evidence filed in this motion.

The Court’s analysis

The Court quite properly pointed out that in order to be successful for the lifting of the stay, the applicants had to show that their debt was more than just one of a contract to lend money that was not repaid.

The Court said that looking at the application in the most charitable method possible, the claims could not support a finding that the respondents obtained property from the applicants by false pretenses or fraudulent misrepresentation. The applicants state that their loan was conditional on the money being used for “Telling Roses”. They do not declare that they were induced to loan money to “Telling Roses” as an outcome of any type of illegal misstatement by the respondents. Likewise, the applicants do not allege that the respondents took part in any kind of deceitful acts that induced them to loan the funds. Therefore, the exception from the discharge of the debt in s. 178( 1 )( e) of the BIA was not advanced in the applicants’ claim.

The allegations in the application also do not support a finding that the participants engaged in fraudulence, embezzlement, misappropriation or defalcation while acting in a fiduciary capacity. To meet that standard it is not nearly enough for a debt to have actually been brought on by fraud, embezzlement, misappropriation or defalcation. That form of criminal activity had to have occurred in the context of a fiduciary relationship.

The applicants do not declare that the respondents had a fiduciary obligation towards them. The relationship they explain with the respondents would not follow such a claim. Fiduciary relationships are unusual in arms’ length business transaction. The applicants additionally do not clearly affirm that the respondents participated in any type of scam at any point.

In reviewing the reasons given by the Judge who made the 2017 order, and in looking at all the other evidence in this motion, the Court found that it was anything more than one party loaning funds to another to start a business. The business never made a profit, it failed and therefore, could not repay the money.

The decision

Given these facts and the Court’s analysis, the Court found that the applicants could not succeed on their motion to lift the stay. Rather, the Court confirmed that the 2017 judgment could only be used as the basis for the applicants to file a proof of claim in the consumer proposal filed.

The basis for the 2017 order was a finding that the applicants lent the respondents the amount of $102,500. There is absolutely nothing in the underlying decision, or in the accusations in the application on which judgment was obtained, or in any evidence submitted in this motion, that puts the applicants’ claim in the classification of financial debts that are not released under s. 178( 1) of the BIA.

Therefore, the applicants’ motion to lift the stay under s. 69.4 of the BIA was rejected. They failed to show that they are likely to be materially prejudiced by the ongoing operation of the stay or that there are various other equitable factors that would lead to a conclusion to lift the stay.

Do you have too much debt?

Are you in financial distress? Do you not have adequate funds to pay your financial obligations as they come due?

If so, call the Ira Smith Team today. We have decades and generations of experience assisting people looking for financial restructuring, a debt settlement plan and to AVOID bankruptcy.

As a licensed insolvency trustee (formerly called a bankruptcy trustee), we are the only professionals accredited, acknowledged and supervised by the federal government to provide insolvency advice and to implement approaches to help you remain out of personal bankruptcy while eliminating your debts. A consumer proposal is a government-approved debt settlement plan to do that. We will help you decide on what is best for you between a consumer proposal vs bankruptcy.

Call the Ira Smith Team today so you can eliminate the stress, anxiety, and pain from your life that your financial problems have caused. With the one-of-a-kind roadmap, we develop just for you, we will immediately return you right into a healthy and balanced problem-free life.

You can have a no-cost analysis so we can help you fix your troubles. Call the Ira Smith Team today. This will allow you to go back to a new healthy and balanced life, Starting Over Starting Now.

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RBC ONLINE BANKING: DID WE NOT LEARN FROM THE RUTHLESS EQUIFAX DATA HACK?

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rbc online banking

RBC online banking introduction

I have a story to tell you about how a Royal Bank of Canada online (RBC) customer is out of pocket after a fraud perpetrated on her. The fraud occurred after she used her RBC online banking sign in.

It is something that everybody does and possibly everyone thinks is a secure transaction. It has to do with the system to move money online made use of over a million times a day in Canada. By telling this tale of the RBC online banking hack, I wish you understand 2 points; 1. it might not be as secure as advertised; 2. you need to be alert in doing whatever you can to shield yourself from the cyberpunks.

RBC online banking: What happened

The woman had gone on vacation with a close friend. A couple of days after they got home she sends her close friend some money she owed her from the journey. Her good friend called the following early morning to claim she could not deposit the transfer. When she tried to deposit the cash, a message showed up claiming that the cash had already been transferred! The sender’s initial thought was what a funny friend she had. She cannot get an easy e-transfer and does not know how to use the system. They also laughed about it.

Her pal consistently sends out and gets money by e-transfer. She understands what she is doing. The e-transfer did not work. The lady quickly examined her savings account. The cash was gone.

rbc online banking sign in
rbc online banking

RBC online banking fraud department

They rapidly met with each other and called the RBC online banking fraud division on speakerphone. The women advised of the situation. The fraud department informed them they know the cash really did not go to the good friend. As a matter of fact, they provided the name of the person that got the cash and his email address!

They were stunned by 3 points. First, they never came across anyone with that name or email address. Second, they could not understand that over the telephone, the RBC online banking people would divulge that information. Third, the RBC online banking system did not let the Bank know the name and email address of the friend who was supposed to receive the money.

The woman then said to the RBC online banking fraud department, alright, please reimburse my account. However, RBC would not do that. They told her they couldn’t yet decide who was hacked – the RBC customer or her friend. They suggested she quickly get to her branch to sort it out. As you will read further, she quickly learned that being defrauded in a digital money transfer is not the same as if someone stole and cashed a cheque you wrote that was intercepted in the mail.

RBC online banking: Going to the Bank

She went to the Bank. Her friend went home. She reached the branch within 5 minutes of hanging up the phone. After half-an-hour of talking with the Bank people, they told her that it had not been her that was hacked. Rather, it was her good friend.

So she told her close friend what RBC said. They went together to the local police station and filed a report. She gave a duplicate of the cops’ report to both the RBC online banking fraud group and the RCMP Commercial Crime division.

RBC continues to contend that it was not their customer’s computer or email that was hacked either as part of the RBC online banking sign in or otherwise. Rather, it was her friend’s computer system and email that was hacked. To date, RBC has refunded their customer only half of the amount lost. They stated that it was only as a goodwill gesture and they are not taking any responsibility for the RBC online banking hack.

How we can protect ourselves from an RBC online banking hack?

There are a few more facts that I have saved for this section of the blog. The reason I did that is that it will show us what additional things we can do ourselves to better protect all of us. Hopefully, can all learn from this RBC online banking sign-in and Interac e-money transfer debacle.

The obvious first step is having up to date and proper anti-virus security on all of our computers. This security must also extend to our mobile devices, as so much of banking is now done that way. Many people use the RBC online banking mobile banking app. If you are not an RBC customer, I am sure that you use your Bank’s mobile banking app. For mobile, this would require us to be using a virtual private network (VPN). Consumer VPN systems are so easy to set up and inexpensive. They protect our private and sensitive information from hackers.

When someone sends an e-transfer of money, you are sending it either to someone on your approved list and therefore the money is automatically deposited. If it is to an email address not on your approved list, then you have to set a security question. The security question is either something only the person you are sending the money to would know or, you have to provide them with the answer. Without the proper answer, they cannot obtain their money.

In this case, the woman’s security question was something that her friend knew. The security question was “who is my favourite Beatle?”. Sounds simple, right? Well not if you have been hacked, there are only 4 possible answers and the e-transfer system gives you 4 tries to get it right!

So it was very simple for the hacker. The whole universe of possible correct answers was 4 and the system gives you 4 tries. The woman would not have known that the system gives you 4 attempts to answer properly. What this shows us is we need to establish a more complicated question and answer that a stranger hacker could not possibly know.

Cybercrime is an ongoing problem. The Equifax data hack is a case of a large corporation being hacked. The reality is that our home computers are so simple to protect. It is the large complicated systems that are more vulnerable. That is unless you have done nothing to protect your home computer from hackers.

RBC online banking conclusion

I hope this sad story has helped you gain a better understanding of what to do to better protect ourselves from cybercrime. Question: Have you or your company been the victim of a hacker, including identity theft? Has something like the RBC online banking data breach ever caused you to lose money and now you have trouble making your monthly payments? Is your business dealing with financial challenges that require to be addressed immediately?

Call the Ira Smith Team today if so. We have years and generations of experience helping people and businesses seeking financial restructuring or a debt negotiation strategy. As a licensed insolvency trustee (formerly known as a bankruptcy trustee), we are the only specialists acknowledged, accredited and overseen by the federal government to supply insolvency advice and implement solutions to help you to remain free from bankruptcy.

Call the Ira Smith Team today so you can end your anxiety, anxiousness, and discomfort today. With the roadmap we establish one-of-a-kind to your scenario, we will promptly return you right into a well balanced, healthy and carefree life.

You can have a no-cost evaluation to help you to fix your credit and debt difficulties. With you, we will discover your monetary pain factors and make use of an approach to free them from your life. This will definitely enable you to start with a clean slate, Starting Over Starting Now.

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Brandon Blog Post

PONZI SCHEME CRIMINALS: CANADIAN PONZI SCHEME GUY WHO RUINED LIVES SENTENCED TO 7 YEARS FOR MASSIVE PONZI SCHEME

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Ponzi scheme criminals: Introduction

We now have a Canadian to add to the long list of Ponzi scheme criminals. A Ponzi scheme is a fraud perpetrated on unsuspecting parties in which belief in the success of a non-existent enterprise through the payment of quick returns to the first investors from money invested by later investors.

Ponzi scheme criminals: What is a Ponzi scheme?

The name comes from the swindling ways of an Italian born con man in the late 1890’s and early 1900’s – Carlo Pietro Giovanni Guglielmo Tebaldo Ponzi – known in North America as Charles Ponzi. The most famous of the modern-day Ponzi scheme criminals is Bernard (Bernie) Madoff, who is serving 150 years in prison for his multi-billion dollar Ponzi scheme.

Ponzi scheme criminals: Canadian Wade Robert Closson, Ponzi scheme criminal

Canadian Wade Robert Closson, a 48-year-old Sturgeon County, Alberta resident was recently sentenced to seven years in jail for executing a Ponzi scheme. He was originally charged in over 80 counts of fraud. Mr. Closson plead guilty to 53 counts. Most of the fraudulent activities encompassed more than one victim, typically a husband and wife pair. Several of them were present in Court and read their victim impact statements. Others were read on behalf of the victims.

Ponzi scheme criminals: His swindle has caused financial devastation

Many of the victims were discussing feelings of shame. They have experienced overall financial devastation. Some are now still working at the ages of 83, not being able to retire. As a result of the fraud perpetrated upon them by Mr. Closson, they cannot afford to take a vacation or go out for a dinner.

Ponzi scheme criminals: With friends like Mr. Closson……….

Mr. Closson was actually friends and even related to many of the victims. Most of them are talking about the loss of trust in their friend, in humanity and their ability now to relate to other human beings.

He preyed on his friends and relatives, who recruited from their social circles to invest with Closson. A number who lost money in the scam lost more than $100,000 with one suffering a loss of over $600,000. This included cash from a credit line and their RRSP. Closson took $80,000 of that amount out of the couple’s accounts without their authorization.

Ponzi scheme criminals: Essentially, it was a mortgage scam

The overall size of the fraud itself was $11 million dollars that ran through the Ponzi scheme. The Crown was able to prove losses of about $6 million dollars. That is what was in the agreed statement of facts.

The Court heard how Mr. Closson ran the Ponzi between 2006 and 2013. He operated two firms, Optam Holdings Inc. (Optam) and Infinivest Mortgage Investment Corporation (Infinivest), which both entered into bankruptcy in 2013. Closson would take the cash invested in Infinivest to pay off the investors in Optam.

When Optam applied for bankruptcy it detailed about $10 million in liabilities spread out among 69 creditors. The biggest one was Infinivest, which Optam owed $4 million.

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ponzi scheme criminals

Ponzi scheme criminals: He recruited friends and family to be on his sales team

Closson made use of the cash to pay himself around $1.185 million throughout the period of the fraud. He used an unspecified amount of money for at least one vehicle, credit cards and golf club. Mortgage payments for his mother-in-law and father-in-law too.

He incentivized people to bring in others into his scheme by paying a commission to his buddies and family members. He invested in various other companies, including a financial investment in a firm that operated a lumber mill in Nicaragua. This investment did not work out well either.

Ponzi scheme criminals: The sentencing

In Court, Closson apologized for his activities and requested the forgiveness of the 20 victims who attended Court for the sentencing!

Justice Belzil ordered Closson to pay restitution of $5.8 million he lost in the Ponzi plan together with a fine of $10,600. He is banned for life from trading in securities.

The Ponzi plan spurred an examination by the Alberta Securities Commission which fined Closson $1 million and banned him from trading in the Province of Alberta in 2015. Up until now Closson has made no payments.

“It is one thing to be taken advantage of by a stranger but this was a trusted friend,” Justice Paul Belzil said when sentencing Mr. Closson.

Ponzi scheme criminals: Wade Closson, the undischarged bankrupt

Closson and his spouse have both filed for bankruptcy on March 27, 2013. He remains an undischarged bankrupt with a hearing set for his discharge from bankruptcy. No doubt that hearing was adjourned until the outcome of the criminal trial was known. Even if Mr. Closson does one day receive a discharge from bankruptcy, the Court fine and the restitution Order, because the restitution is a liability arising out of fraud, will follow him for the rest of his life.

How the bankruptcy discharge process works has been a topic of several of my blogs in the past, including, BANKRUPTCY DISCHARGE: THE TOP 8 THINGS THE BANKRUPTCY COURT WILL CONSIDER ON ANYONE’S BANKRUPTCY DISCHARGE APPLICATION.

Ponzi scheme criminals: Do you have too much debt?

Have you taken on debt that you cannot repay as a result of being swindled from a Ponzi scheme? Have you been swindled and now don’t have enough cash to meet all your debts? Are you facing financial problems for any other reason? The Ira Smith Team can develop a restructuring plan for you.

Debt problems are stressful and confusing. The Ira Smith Trustee & Receiver Inc. Team understands the pain you are going through trying to stay alive and trying to support yourself and your family. We understand the pain and stress you are feeling thinking that you may just soon hit the wall.

Our debt settlement plan process can ease this stress. The Ira Smith Team has a great deal of experience in helping people avoid bankruptcy while resolving their debt problems. We understand your pain points. Call the Ira Smith Team today for your free consultation. We can end your pain and put you back on a healthy profitable path, Starting Over, Starting Now.

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Ponzi scheme criminals
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Brandon Blog Post

FINANCIAL ABUSE STATISTICS SHOW THAT OUR SENIORS DESPERATELY NEED ELDER FINANCIAL ABUSE HELP

financial abuse statisticsFinancial abuse statistics: Introduction

How common is elder abuse? As Canadians we should be ashamed that the financial abuse statistics show it is the most common form of elder abuse in Canada. There are countless stories about seniors being financially exploited by someone close to them – spouse, child, friend, neighbour or caregiver.

The victims are typically alone, lonely, in poor health or in diminishing capacity. They’re easy prey and in many cases lose their savings and their homes, with just their pensions left to exist on. According to Lynn MacDonald, director of the Institute for Human Development, Life Course and Aging at the University of Toronto, one of the elder abuse facts is that 2.6% of Canada’s growing population of residents 55 years of age and older are financially abused. It’s very sad that we now have to educate seniors on how to protect themselves from those closest to them.

Financial abuse statistics: What is financial abuse?

Financial abuse can take many forms. The most obvious forms of financial abuse are actually theft or fraud. E.g. someone takes money out of your bank accounts for their own use without your permission.

Even if that person has power of attorney it’s still illegal because they are legally obligated to act in your interests, not theirs. Having power of attorney doesn’t mean anyone can help themselves to your money or property. Or, someone cashes your pension cheque and keeps some of the money for themselves without your permission.

Financial abuse statistics: Other forms of elderly financial abuse

Other forms of financial abuse are less obvious, but just as dangerous. According to the Government of Canada financial crimes against the elderly can include pressuring, forcing or tricking you into:

  • Lending or giving away money, property or possessions
  • Selling or moving from your home
  • Making or changing your will or power of attorney
  • Signing legal or financial documents that you don’t understand
  • Working for little or no money, including caring for children or grandchildren
  • Making a purchase you don’t want or need, or
  • Providing food and shelter to others without being paid

Financial abuse statistics: How can you protect yourself from financial abuse?

You really need to be cautious. Remember that the money and property is yours.

  • Safeguard your personal information
  • Don’t give out your online banking information or PIN numbers
  • Be cautious about opening a joint bank account because the other person can take all the money without asking or needing permission
  • Don’t co-sign credit cards or have joint credit cards. The other person can accumulate huge debts that you will be responsible for
  • Have your lawyer prepare a power of attorney appointing someone you can trust to look after you so that even if you’re ill and can’t take care of yourself, to protect your finances from others who might try to take advantage of you (pick someone who isn’t in a constant need of money)
  • Never sign any documents without legal advice from your lawyer
  • Keep detailed records of any money you give away and whether it’s a gift or loan
  • Don’t allow yourself to become isolated with only the abuser to depend on. It will give them all the power they need to take full advantage of you

Financial abuse statistics: What are the signs of financial abuse?

According to Leanne Kaufman, head of RBC estate and trust services, be vigilant for red flags such as new bills suddenly being paid or an inordinate or unusual number of financial transactions. And watch for changes in financial spending patterns or the types of places where money is spent.

Financial abuse statistics: Are facing debts you can’t cope with?

The sad reality is that everyone is vulnerable, not just the rich. If you’ve been a victim of financial abuse and/or are facing debts you can’t cope with for any reason, contact the Ira Smith Team. We give the depth of expertise found in a large company, delivered in a boutique setting that ensures high quality and cost-effective service. With a cumulative 50+ years of experience dealing with diverse issues and complex files, we deliver the highest quality of professional service. Contact us today and let us help you overcome your financial difficulties Starting Over, Starting Now.3bestaward

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Brandon Blog Post

IDENTITY THEFT HORROR STORIES: BEWARE OF FRAUDSTERS & IDENTITY THIEVES

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Identity theft horror stories: Introduction

There always seems to be identity theft horror stories coming out right after the holiday shopping season. The holidays may be a time of good cheer, but for others who’ve been victimized by fraudsters and identity thieves, it can be a nightmare. Earlier in the month we posted a blog giving you 3 secret techniques to guard against identity theft, but we must still remain diligent.

Identity theft horror stories: What more can you do to protect yourself against fraudsters & identity thieves?

According to Equifax, Canadian consumers have indicated that they’ve taken the following steps:

· Shared less about self on social media· 87%
· Used an up-to-date computer anti-virus product· 81%
· Double-checked credit card statements· 79%
· Shopped less online· 56%
· Avoided using public WiFi· 47%
· Used cash more often· 46%
· Updated security passwords· 43%
· Used an identity theft product· 30%
· Checked my credit report· 28%

Identity theft horror stories: What can you do if identity theft happens to you?

The Financial Consumer Agency of Canada advises that you document in writing everything that’s happened since you first became aware of the fraud and that you follow these 4 steps:

  1. Contact your local police and file a police report.
  2. Contact the financial institutions, credit card companies, phone companies, and other lenders for any accounts you suspect are opened or tampered with.
  3. Contact the two credit bureaus in Canada, Equifax and TransUnion. Ask that a “Fraud alert” be placed in your credit file. At the same time, order copies of your credit report and review them. Make sure all the accounts and debts that show up on your report are yours. Report any incorrect information to the credit bureaus.
  4. Contact the Canadian Anti-Fraud Centre (CAFC) toll-free at 1-888-495-8501 to report the fraud and get advice. The CAFC plays a crucial role in educating the public about specific mass marketing fraud pitches and in collecting and disseminating victim evidence, statistics and documentation, all of which are made available to law enforcement agencies.

Identity theft horror stories: What should you do if you have your own Christmas credit card debt horror stories?

Remember to always protect your personal information at home, online, on the phone and in public places and follow our 3 secret techniques to guard against identity theft. Everyone is a potential victim so be on your guard. Unfortunately even taking precautions is not 100% foolproof, so if you’re now experiencing serious financial difficulties as a result of identity theft or for any other reason, give Ira Smith Trustee & Receiver Inc. a call immediately. We can help you solve your financial problems with immediate action and a solid financial plan Starting Over, Starting Now.

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#VIDEO – CREDIT FRAUD ALERT CANADA: APPLY THESE 3 SECRET TECHNIQUES TO GUARD AGAINST IDENTITY THEFT#

CREDIT FRAUD ALERT CANADA: SEE OUR FREE OFFER

AT THE BOTTOM OF THIS VLOG

Credit Fraud Alert Canada: Introduction

Laurie Campbell joins me now to explain about credit fraud alert Canada. She is the CEO of Credit Canada Debt Solutions. Alright so let’s talk about some practical tips. What are your top three tips that will help people lower the risk that they could go through like this woman from Winnipeg described below went through?

Credit Fraud Alert Canada: Laurie’s top 3 tips

Laurie’s top 3 tips are:

  1. Check your credit rating. Contact both Equifax and TransUnion because those are the two credit reporting agencies in Canada.
  2. Limit the of credit cards you have. So many people are not aware of how easy fraud can happen when you have five or six or ten types of credit out there.
  3. Don’t give out your credit card or personal information to people even if you know them well. Safeguard it like money and make sure you do not give your credit card to people who may phone you asking for it. There are many scammers just phishing for information.

Credit Fraud Alert Canada: A very sad story

This woman’s story has lasted just over three years. Imagine, three years to get your credit fixed. That is unusual, incredibly unusual for it to take that long. Certainly there are some there are processes in place and you know unfortunately for her the only reason she found out about it was because she had a mortgage renewal. This is why it’s important to check your credit rating.

Credit Fraud Alert Canada: The credit rating

So remind us again what a credit rating is. There is a credit rating and a credit score. Both are very important. Your credit rating is a rating on how well you pay your debts and it reflects your credit history. For example, if you pay on time and you have a long period of history reports on the different types of credit that you have.

Your credit score is accumulation of information including not just your credit rating but that how long have you been using credit and your behavior with credit over time. It is personal information so essentially your credit rating makes up your credit score to a certain degree.

Credit Fraud Alert Canada: An ounce of prevention

Both are really important and so what options does a fraud victim have when you’re getting stonewalled by the creditors or the credit agency and there is wrong information about you in your credit report?

First there are certain things we hopefully can do to prevent that from happening but once that does happen you can ask for an investigation by the credit reporting agencies. You are going to need to be able to have some backup information on your set of circumstances to prove that it wasn’t you. In this case you are guilty until proven innocent. The burden is on you as the consumer to point out why they’re wrong and made a mistake.

Don’t forget that the credit reporting agency is merely reporting on information from the date provided to it. So first, you are going to need to have the creditor recognize that there is an error. Keep in mind it could be something as simple as your employment information. If you don’t have up-to-date employment information on you because you haven’t applied for credit since you have a new job or new place of residence. Those types of things are considered errors as well so we start to whittle away it.

Credit Fraud Alert Canada: Always check your credit report

We need to know what our credit report says and that’s why as Canadians we should be checking it on a regular basis. Some families share their credit cards with their kids which makes them more susceptible to being victims of fraud. Anytime you’re giving your giving your credit card out, especially to family members or friends, you’re putting yourself at risk.

First, there is “friendly fraud”. You hope it never happens to you where somebody else is using your credit in a way that you don’t want them to. Also, exposure in the marketplace is a problem. That is where people can leave credit cards behind and people then use it for their own purposes.

You should safeguard your credit like cash, but some people don’t do this.

Credit Fraud Alert Canada: Get your solution

The last thing any of us need is having our identity stolen and a fraud perpetrated on us to ruin our credit. If you are having credit and debt problems, help with your debt issues is available now. Contact Ira Smith Trustee & Receiver Inc. We’re your best defence against debt. Make an appointment for a free, no obligation consultation and you can be well on your way to a debt free life Starting Over, Starting Now. Give us a call today.

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