The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.
Debt-settlement agencies in Manitoba must soon follow new rules designed to protect consumers. New amendments to the Consumer Protection Act will ban upfront charges, set maximum fees and require debt-settlement agencies to become licensed. 'We want to be sure that people already struggling with debt don't find themselves paying large fees upfront with no guarantee the service will actually reduce their debt,' said Consumer Affairs Minister Jim Rondeau. 'Some consumers have found themselves worse off than before signing up for debt settlement.' Under the debt-settlement model, consumers may be told to stop paying their creditors and put money aside in a separate account.Ê When the account accumulates a large enough balance, the agency will then attempt to persuade the creditors to accept a smaller payment than what is owed. Debt-settlement agencies have claimed to reduce debt by a significant amount but there is no guarantee the creditor will take anything less than full payment, said Rondeau. Agreement Under the new regulation, which comes into effect on Feb. 15, consumers can only be charged a fee if the creditor and debtor reach an agreement on reduced repayment. The debt-settlement agency's fee will be limited to a maximum of 10 per cent of the debt owed. For more help finding financial counselling and support to manage debt, contact the Manitoba Consumer Protection Office by e-mail at [email protected]Êor by phone at 1-800-782-0067. _ Compiled from a Government of Manitoba news release
