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May 15
Filed bankruptcy but still getting collection calls? Know your rights.
  on 5/15/2012 12:56 PM

​Before filing bankruptcy many Canadians spend months dealing with calls from collection agencies who work on behalf of creditors, or from a company’s own collections department. When you file bankruptcy, under legislation, your creditors are no longer allowed to contact you or pressure you for payment. This is because filing bankruptcy is a legal process to erase unmanageable debt and by law, it puts an end to the stressful and relentless actions of the companies you owe money too, including debt collection calls.

Recently, a 25-million dollar class action lawsuit was filed against the 407 ETR highway in Ontario, for the company’s alleged collection practices against those who have filed for bankruptcy. The lawsuit was filed on behalf of people who declared bankruptcy but continued to be harassed by the 407 ETR for outstanding tolls and fees. The lawsuit alleges the company has continued to unlawfully collect outstanding money owed to them by threatening to deny vehicle permit and licence plate renewals.  Fearful over losing the ability to get to work and move on with their lives, the suit claims that many people were coerced into paying fees that under the Bankruptcy and Insolvency Act, they did not have to. 

For more information on the lawsuit or if you think you could be a potential class member, visit classactionlaw.ca or call 905-526-4394. If you are still in bankruptcy and receiving collections calls from creditors listed in the bankruptcy, contact your Trustee.

If you are struggling with debt and receiving calls from collection agencies, we can review your situation and explain different options to take control of it.  Filing bankruptcy is a last resort and we can explain how you can avoid bankruptcy and still put a legal stop to collection calls through a consumer proposal. Contact your local BDO debt help office today.

May 07
Consumer alert about debt settlement - Ontario Ministry of Consumer Services
  on 5/7/2012 10:26 AM

In the wake of an increasing number of complaints about companies offering debt settlement services, the Ontario government has released an alert with some important advice. The government says the majority of complaints relate to excessive fees, misleading contracts and the failure to successfully reduce debt. 

If you are thinking about using a debt settlement company, review the government’s tips and information before meeting with them to make sure are aware of your rights and help you plan what questions to ask.    

If you are interested in reducing the amount you owe, a consumer proposal is another alternative. A consumer proposal can also settle you debt for less, and offers other benefits imcluding legal protection from creditors actions such as debt collection calls or wage garnishments. Check out our comparison of a debt settlement plan versus a consumer proposal.

If you need help with debt and want an objective, no obligation consultation, contact a BDO office near you. We'll review your situation and provide information on all of your options to help you make an informed decision.​

April 20
Concerns about debt settlement organizations raised by the Canadian Association of Credit Couselling Services (CACCS)
  on 4/20/2012 10:39 AM

The Canadian Association of Credit Counselling Services (CACCS) issued an important advisory about debt settlement organizations yesterday. In their statement, the CACCS respectfully urges lawmakers to investigate the controversy surrounding debt settlement organizations and to look at legislation to help better protect consumers in all provinces. We applaud the CACCS’s efforts and thank them for their support in recognizing BDO as a professional colleague.

Personal debt problems are stressful enough and the confusion surrounding the legal and technical aspects of how debt solutions work can make it overwhelming. As accredited professionals, BDO trustees and CACCS accredited financial counsellors are mandated to provide clear information and objective advice to help Canadians reach solutions with creditors. BDO and CACCS member organizations across the country uphold the value of transparency, helping Canadians fully understand the various options for dealing with debt so they can make informed decisions.

If you are looking for objective and impartial advice about your financial situation, contact the BDO office near you for a no-obligation consultation, or speak to your local credit counselling organization.

April 12
Debt settlement robocalls – What happens when you press "1"?
  on 4/12/2012 11:20 AM

My name is Bill Courage and I’m a Senior Vice-President and Trustee with BDO. Daily in my practice in mid-western Ontario, I help people deal with debt.

Like many other Canadians, I recently received a “robocall” asking if I had debt and wanted to pay less money to get rid of it.  Instead of hanging up, I pressed "1" to see what would happen.  I left a message, told them I have a line of credit with a $38,000 balance on it and waited.

I received a call from Velocity Processing, a debt settlement company.  velocity_logo.jpgThe caller confirmed my debt amount, estimated a payment and advised that they would contact my creditor, reduce the debt by 40% and make payments to them which would include their fee.  It sounded like it was too good to be true! 

I asked how they did this.  They advised me that an attorney would contact my creditors.  I asked who they were and where they were located.  Immediately the caller suggested that, simply by asking questions, perhaps I was not really interested in their program.  He asked if I was on a “do not call” list.  When I stated that I simply wanted to get some more information, he referred me to their website and hung up.  After looking at the website I found that Velocity Processing operates out of Fresno, Texas. 

What was interesting about my experience was that Velocity did not want me asking questions. When I didn’t immediately sign up for their program and tried to find out more, I was shut out.  He provided no information about the effect it would have on my credit rating – either during the phone conversation or on the Velocity website. From experience I know that any type of debt settlement arrangement will negatively effect credit rating.  They also did not address the fact that debt settlement is a negotiation process with creditors and results can’t be guaranteed, unless the arrangement is made and accepted by creditors through a formal consumer proposal.

In Canada, if you are struggling financially, a consumer proposal provides a far more effective way of addressing outstanding debts.  There is immediate protection from creditors, it deals with all creditors on a consistent basis, has a regulated and fully disclosed fee schedule, and the process is overseen by government licensed professionals.  Call your local BDO debt help office for information.  Unlike Velocity Processing and many other debt settlement companies, we WILL answer all of your questions about the debt settlement process.  ​

 

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