“We’re restricting the fees debt settlement companies can charge in order to negotiate settlement on behalf of consumers.”
Change is coming to the debt settlement industry by next spring.
Justice Minister Suzanne Anton says the expiring system often left debtors in a poorer position from where they started.
“Currently, some companies are charging a fee up front before any agreement between the debtor and creditor is reached.”
Companies will no longer be able to charge that up-front fee.
In addition, if a debtor needs 90 days or longer to repay the debt, companies can only charge up to 15% of that total amount.