Although some credit counselling companies are legitimate, there are many fraudulent credit counsellors who charge high fees, provide little or no service and warn against discussing your money problems with a licensed trustee in bankruptcy.
A credit counsellor has no greater ability to negotiate with your creditors than you do. The credit counselling industry is unregulated and anyone can claim to be a credit counsellor.
How to spot a legitimate credit counsellor:
Not-for-profit United Way sponsored agencies
Never charge fees upfront
Accredited by the Ontario Association of Credit Counselling Services (OACCS)
Recommend reviewing your situation with a licensed trustee in bankruptcy
No cost referral for you to meet with a licensed trustee in bankruptcy
Over the years, we have developed relationships with credit counsellors across Ontario. Find a trusted credit counsellor in your area.
Credit counsellors CAN help you by:
Providing budgeting and money management advice
Filing a debt management plan
Helping you communicate with your creditors
Credit counsellors CANNOT help you to:
File a consumer proposal
Deal with government debts
Compromise the total amount that you owe
Stop, by legislation, creditors from garnisheeing your wages
We provide free initial consultations. Before you sign anything with a credit counsellor, you should understand all of your options and review your situation with a licensed trustee in bankruptcy.
