Victoria, BC Debt Consolidation Expert on a Badly Needed Regulation

When fish aren’t biting in one spot, the sensible thing to do is to move to another. That’s exactly what financial sharks have been doing following the U.S. recession.

Times Colonist reporter Les Leyne wrote that bogus debt settlement services have made their way into Ontario and British Columbia after markets south of the border dried up. Such shady practices can range from massive upfront fees to refusing to begin negotiations. Over the past five years, Consumer Protection B.C. received less than 100 calls a year regarding the legitimacy of such debt settlement services. Now, the Credit Counselling Society of B.C. reported receiving as much as 200 calls a month. Something had to be done.

Hon. Suzanne Anton, Attorney General of B.C., introduced the Justice Statutes Amendment Act that would amend sections of the Business Practices and Consumer Protection Act. Among the amendments include the requirement for debt settlement services to carry a licence. It reached law status in late March. Moreover, the law requires debt settlement companies not to collect any fees from a debtor unless his or her creditors accepted their repayment proposal.

In fact, Victoria, BC debt consolidation experts like Blair Greenwood – 4 Pillars Debt Relief Consultant believe that the province needed this regulatory law for the longest time. Here’s why:

Debt settlements or informal proposals require a lump sum to be paid. Most of the time, debtors don’t have the luxury of paying every cent of their dues in one go. Opportunistic debt settlement services end up charging massive upfront fees, often without a refund (regardless of the outcome), which defeats the promised savings. Unless debtors can pay for these fees, mediators will refuse to enter into negotiations with the creditor. Today, such practices could be deemed illegal.

It’s a good thing there are still reliable debt consultants who tirelessly work on behalf of debtors in need of effective debt management solutions. Indeed, no two debt relief specialists are alike. When you need a solid financial or debt restructuring plan as well as assistance in creating a successful consumer proposal to your creditors, it would be beneficial for you to work with an experienced and highly recommended debt consultant like Blair Greenwood.

With the amendments in B.C. legislature, experts hope that the law would provide greater protection to debtors than ever before. It could’ve come sooner, but the important thing is that the oppressive practices mentioned above have been branded illegal. Whether you choose debt consolidation loans or debt settlement, always stay informed and pair up with a leading debt relief specialist.

(Source: Les Leyne: Legislation targets bogus debt services, Times Colonist, March 10, 2015)