There has been a recent report in the Toronto Star titled “Ontario Liberals to crack down on debt settlement companies”. This report attempts to illustrate that there is an issue with debt settlement companies in Ontario. The article refers to companies who charge consumers a large upfront fee and perform no work in exchange.
We, at OCCA Consumer Debt Relief, are thrilled about the government cracking down on debt settlement companies. We have been advocating this for years. OCCA has been helping Canadians resolve debt for over a decade, but we settle debt differently than the companies the government is cracking down on. There are two methods of resolving debt.
The first method is “Debt Pooling”, and is the most commonly practiced in Canada out of the two. By “Debt Pooling” consumers are required to open a joint savings account with the debt settlement company and deposit money into this account every month. Once the consumer has saved enough money, the debt settlement company will begin working for the consumer. The problem with this method is how the company charges a fee from the beginning of the program even though it does not begin to perform for the consumer until the company feels that the consumer has accumulated enough money.
The second method that is less commonly used in Canada is the Informal Proposal. The main reason this process is less common in Canada is due to the fact that it requires each file to be worked actively immediately. In this process the company will start assisting the consumer in resolving their debt trouble from day 1. These companies have Licensed Paralegals on staff to represent the client from day 1 to the time that an arrangement is put in place with the creditors. The company will communicate with creditors as soon as the consumer becomes a member and attempt to work for the best possible outcome for the consumers. Their main and only goal is to help the consumers with their debt resolution and become their chosen representative.
The government is attempting to weed out companies who are looking to scam people out of their money and perform no work in exchange. Companies like OCCA Consumer Debt Relief who operate in accordance with the informal proposal process make one promise to the public – they will work for you diligently from day 1 and attempt to secure the best possible outcome for the individual. There are no false promises like “guaranteed debt savings of 70%” or false statements like “government sponsored debt programs”. We believe every situation is different for individuals and, therefore, tailor our debt relief program accordingly.
To learn more about what OCCA can offer you, give us a call and speak to one of our expert counselors. We are the professional and prudent choice for debt relief. We’ve been successful in helping Canadians with their debt for over a decade, and we’re in it for the long haul. Call us at 1-866-873-6222 or visit us online at www.occa.ca. We can help!.
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