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ARTICLE · 04 FEBRUARY 2013

Debt Settlement Industry - Regulation Is On The Way

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A discussion on consumer debt and the debt settlement industry.

CanadaConsumer Protection
Sarah McKinnon
Sarah McKinnon
Jonathan Fleisher
Jonathan Fleisher
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As consumer debt has grown over the past generation, so too has the debt settlement industry. In return for a fee for their services, debt settlement companies offer to negotiate a settlement of consumers' debts at a reduced amount on the debt owed. Significant concerns have been raised as to how some of these companies have conducted their businesses and the fees they have charged their clients. There have been many incidents of companies charging clients an up-front fee but providing the client with no tangible results. The indebted client is then further in debt. On January 4, 2013, the Ontario Ministry of Consumer Services announced that Ontario intends to regulate debt settlement companies to protect consumers.

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