BDO encouraged by government warning about debt settlement companies
January 12, 2012
Over the last few years, a growing number of debt settlement companies, have entered the Canadian marketplace, promising they can get 50 to 80 percent of clients’ credit card and other unsecured debt written off. Many are using aggressive tactics, including government-looking direct mail pieces, telemarketing recordings, as well as hiring Canadian celebrities as spokespersons. For Canadians who are overwhelmed by debt, these offers can be very tempting.
On January 10, 2012, the Financial Consumer Agency of Canada (FCAC) actually issued a consumer alert, warning Canadians about these companies and to be aware of the too-good-to-be-true offers that many of these companies make. The FCAC is an independent body that was established by the federal government in 2001 to strengthen oversight of consumer issues, expand consumer education and works to protect and inform consumers of financial products and services.
As a trustee in bankruptcy firm that offers financial services and facilitates consumer proposals (a statutory debt settlement solution using the Bankruptcy and Insolvency Act), BDO is encouraged by the steps that the FCAC has taken to educate consumers about these companies. As such, we are continuing to promote the need for the media and the entire financial services industry to champion the importance of improved transparency of all parties operating in this sector, and to promote financial education and literacy for all Canadians. Only through greater awareness can the public educate itself and develop better credit and debt management skills and habits.
Supporting background information:
FCAC Consumer Alert – “Debt reduction companies: Beware of “too good to be true offers”, January 10, 2012
Debt Settlement Plans in Canada - bdodebthelp.ca
Debt solutions that could cost you – CTV News, March 8, 2011
U.S. ‘debt settlement’ firms draw Canadian warnings – CBC News, June 2, 2011
Office of the Superintendent of Bankruptcy
Review of the Trustee Licensing Regulatory Framework
| __________________________________________________________________________ |
| Note to editors |
BDO Canada Limited helps Canadians resolve personal and business debt problems. We have been providing advice to individuals about debt solutions for over 50 years. Our trustees in bankruptcy, proposal administrators and credit counsellors provide financial advice, helping thousands of Canadians each year to take control of their debt.
BDO Canada Limited is an affiliate of BDO Canada LLP, one of the largest accounting and advisory firms in the country. Our team has access to the full service support of over 2,700 partners and professionals in 95 offices nationwide. We offer assurance, accounting, taxation and financial advisory services to businesses and consumers.
BDO is the brand name for the BDO network and for each of the BDO Member Firms. The global network has 1,082 offices in 119 countries and more than 46,000 people provide advisory services throughout the world.
|
| __________________________________________________________________________ |
| Contacts |
Bill Courage, CA, CFE, CIRP, Trustee in Bankruptcy
National Insolvency Practice Leader
BDO Canada Limited
www.bdodebthelp.ca
|
Tel: 519 372 0188
bcourage@bdo.ca
|
