Friday, April 19, 2013

Proposed Debt Settlement Services Rules Welcomed

There's some praise being offered to the Ontario government for its plans to bring in new rules aimed at debt settlement services.

Frank Fabiano, a trustee in bankruptcy with Grant Thornton, says he's aware of individuals who used these services and paid out large sums of money intended to help cover their debts, only to be sued later by their creditors.

Fabiano says some the companies take the money and don't negotiate a deal with creditors for some time.



The proposed legislation includes companies having easy-to-understand contracts and doing away with upfront fees.