Ontario is not all a stranger to debt settlements, although things have been working out so far since 2012 with a 9 percent drop in personal bankruptcy filings compared with last year. However, there is still the demand for much stricter policies when it concerns debt settlement in the city. With a brand-new bill in the legislative works, trusted debt settlement agencies have their work cut out for them.
The bill is made to make numerous changes to the Collection Agencies Act, a local law that regulates collection agencies such as debt settlement businesses. Apart from the existing prohibitions, the bill will include upfront costs to the listing, securing clients from a severe monetary pickle. On top of that, the bill will also give clients a ten-day cooling period to cancel any agreements signed. Failure to abide by the policies will be enough grounds for cancellation of license in Ontario.
Don't get the wrong idea; debt settlement can be useful. It's just that some bad eggs are mixed in with the good ones in the basket, leading people to raise their eyebrows on the total quality of all the eggs. Most of the time, the bad ones look like anything but in their advertisements, attracting unsuspecting people with the right choice of words.
Consumer minister Tracy MacCharles says unregulated businesses, especially those requiring to the Internet, position the larger hazard. They tend to need a non-refundable upfront charge prior to even beginning the debt settlement procedure. They also utilize telemarketing services to connect to possible customers, making regulation harder for the ministry.
If the bill passes, Ontario will be up there with Alberta and Manitoba as provinces with a solid and strict policy on collection and law of debt management companies. For now, it pays to read the fine print and request qualifications. Bear in mind that you can inspect a business's trustworthiness, as businesses are required to show their licenses to the general public. The best way to protect yourself against scams is to detect one.
Read the information at TheStar.com to find out more on Ontario's bill worrying collection agencies. If you like to know more about debt settlement in basic, visit TheNest.com.
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