As previously announced, and as mentioned in the Speech from the Throne, the Ontario government has proposed new regulations that indicate that the debt settlement rules are changing in Ontario.
Is this good news?
Probably, but of course it will depend on how the new rules are enforced.
Under the new rules debt settlement companies will not be permitted to charge large up front fees. That’s good news, because it means consumers will only pay for value.
I like that idea, because that’s how it works now when you file a consumer proposal, which is an alternative to bankruptcy in Ontario. If you file a consumer proposal (or a bankruptcy) your payments don’t start until you receive legal protection from your creditors. That means that by the time you start paying, garnishments can be stopped; there’s no extensive waiting period.
That’s good news, and these new rules will be good news if they put all debt advisors on a level playing field.
Time will tell if they work as intended.