Finally we can agree on something. American methodology is creeping into the Canadian arena and it scares me. Where ever there is buck to be made, the Americans are there to take advantage. Living in close proximity to Michigan, I am inundated daily with TV / radio ads by for profit debt relief agencies. Many of the US agencies are owned by credit grantors.
But this invasion by US debt poolers should be stemmed by regulation just as the invasion of pay day loan companies has been regulated.
The Bankruptcy and Insolvency Act has provided that each province or territory could establish a provincial Orderly Payment of Debt Program. Only three provinces chose to enact a government OPD program - Alberta, Saskatchewan and Nova Scotia. The other provinces chose to come up with their own form of programs. Ontario in the late 60's and early 70's decided to treat debt problems as a social problem. The plan was to allow local social service agencies who met certain criteria to start CCS programs that would be funded 70% by the province of Ontario with the remainder generated locally. In Ontario, this 30% came from United Ways, Catholic and Jewish religious organizations, trade unions, etc.. went this way for about 23 years. For profit agencies are governed by a CEO, a board of directors and shareholders. Non profit agencies are governed by unpaid boards of directors.
Ten, Ontario elected an NDP government who was looking to cut social service costs. There was a change of thinking. First, the new BIA amendment of Nov 1992 should allow CCS to administer consumer proposals. They would get the initial $1800.00 plus 20% of the funds disbursed leaving no need for provincial funding. Second, for the past 23 years, the credit community had been getting a free service. Since the programs worked and were by now professional, the time had come for them to contribute.
Government funding stopped almost immediately. The province had not counted on the strong backlash by the trustee community to non trustees administering proposals, The Province had not contracted the Fed to see what their position was. Finding themselves without funding, the non profit credit counselling agencies negotiated an arrangement with the Canadian Banker's Assoc. to make charitable donations equal to 10% of the funds disbursed under the debt repayment plans. At the same time, the Collection Agencies Act was amended to remove any requirement for any member agency of the Ontario Association of Credit Counselling Services to register as a collection agency. Based on this premise and the consolidation of several agencies, non profit CCS has survived in Ontario. I speak only about Ontario. These non profit agencies are run by a local board of directors and reflect the communities needs.
Some people think of CCS as "ducks". If it walks like a duck and talks like a duck, it must be a duck. CCS in Ontario are not ducks, While they may appear to act like collection agencies or for profit debt poolers. They are not the same. I choose to give them the benefit of the doubt rather than lump them in with everyone else because I know what they do and how they are motivated.
To all of those people looking for help, it is not the worst thing you could do to contact a non profit CCS in your community to discuss your situation. Usually the first visit is free, Even if all you get out of the meeting is free information, you are no worse off than before you went in. Also do your due diligence and ask all of the questions necessary to make a informed decision. Seek a second opinion ... Call someone like Johnny and get his take on your situation. Once you have gathered all of the information to make an informed decision, do what is right for YOU.
Education not dogma is he key. Become an informed consumer. Find a solution that works for YOU.
hardship
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