If you are seeking a solution to your debt or assisting someone else, you have likely been flooded with information.  Consumers report experiencing confusion, stress, and frustration when researching what it available to them in Canada.  Primarily, they are concerned with who to trust and what risks may exist.  All four debt relief programs offered in Canada contain both positive and negative components to their service.  One of these programs is called “debt settlement” also known as “debt arbitration” or “debt negotiation.”  The use of debt settlement as a tool to dealing with your debt is new, but the concept of debt settlement and negotiating is not.  In fact it is progressively pursued in the legal system and ever occurring in business.  This historical concept has been a fundamental way of resolving conflict or difficult circumstances.  Unfortunately, debt settlement, like all programs, can and has been subject to abuse and there have been some companies that unethically and unprofessionally taken advantage of consumers.

These “scam” companies have threatened the credibility of “debt settlement” as a whole.  Most of what is discussed on the internet is directly related to the “bad apples” or “scam” companies in the United States and only recently have these companies tried to cross the boarder and operate in Canada (such as Cambridge Life Solutions and Vortex).  These companies have scammed people and caused some very serious harm.  So caution is essential.  This should be considered for every industry.  In fact, bankruptcy trustees have been litigated against, and some credit counselling and consolidation companies have had serious reports of unethical and illegal behaviour as well.

As a Canadian debt settlement company, K&G Debt and Credit Professionals considers educating consumers as one of their most prominent responsibilities.  In considering debt settlement as an option, recognize that a legitimate debt settlement company will provide a free initial assessment of your circumstances.  They will conclude that assessment by providing you with education on all the options available to you in Canada or provincially, their recommendation will include supportive reasoning, and any further education in reference to your rights and risks.  Debt Settlement is a fantastic option for some, but another option may better suit someone based on their specific circumstances.  No matter what option is chosen, there are scams and unethical companies that should be avoided.

When seeking a company to represent you in negotiating with your creditors, consider the following:

1. Trust your gut.  Do you feel pressured?  Do they seem genuine?  Does it sound like a sales pitch?  Do they provide a free consultation that describes all your options and other services available in Canada?  This is your first line of defence.  Scam companies are easily picked out by intuition.
2. Get it in writing.  Be clear as to their fees, policies, etc.  Read the small print.
3. Check their credibility.  Are they members of the BBB or other association?  Who are they linked with (other service providers etc.).  Are there any complaints against them?
4. Confirm that they are truly Canadian.  Does this debt settlement company have a head office in Canada?  Call the phone number for the head office and ask where they are located.
5. Remember that big corporations or companies are not always the most credible.  Consider smaller companies.  Some of the best debt settlement companies in Canada operate small.  They do it because they believe in it and are tenaciously motivated.
6. Ask how settlement funds are managed.  What happens if you change your mind and later decide to leave the program?

Debt settlement will always exist and for many will be the best possible option. As with ALL debt relief programs, there are pros and cons to debt settlement. For example, there is some criticism that debt settlement ruins your credit report (note: credit counselling and bankruptcy cause more damage to a credit report than debt settlement. Contact Equifax with further questions). A legitimate debt settlement company will tell you that their primary objective is to get you out of debt. They will not claim to protect your credit report. Unfortunately, most creditors will not consider a settlement if a consumer continues to make their monthly payments. Therefore, most consumers stop making payments as a result of their overall circumstances, and this can cause damage to a credit report. The majority of individuals who are in financial trouble already have damage to their credit reports or anticipate damage from missed payments. If a consumer needs to maintain a good credit rating, the debt arbitrator will recommend other options.

Debt settlement companies that have scammed consumers (primarily non-Canadian companies) have stated some or all of the following:

1. They guarantee a settlement and a specific amount (there are no guarantees, it is like a lawyer representing you and stating that you have a “good case” then the negotiations begin. Most creditors will try and counter offer a settlement. Therefore you may offer 20% and they may counter offer at 25% for example. You may or may not agree to accept the counter offer).
2. They promise that you will not have damage to your credit report. Your credit report can have damage, particularly from missed payments. Some individuals receive very little damage to their credit report, but an ethical company will not make this kind of promise.
3. They will require front loaded payments towards their fee. Many of the untrustworthy companies operate this way. Their primary goal is to get paid. It is not proof that they are unethical, but may be considered as a warning. Many Canadian companies will work on contingency and not require a fee until they have been successful.

Credit card companies, banks and other lending institutions, as well as lawyers will often send out settlement offers (typically unreasonably high), and their debt collectors will also offer a settlement to you as well. Debt settlement companies are not reinventing the wheel they are representing you to get the best possible settlement, and to educate you on your rights and risk factors. Creditors and their agents DO and always WILL accept settlements and forgive remaining debts. This is a Fact.

So, do your homework and seek a company that you believe is trustworthy. Consider this with all debt solution companies, not just debt settlement.

Bonnie is a certified Debt Arbitrator, and is renowned as a leading expert in debt settlement in Canada. Bonnie holds a Masters of Education, and a Bachelors in Psychology, and as the founder and CEO of a debt settlement consulting firm, K&G Debt and Credit Professionals, has successfully assisted her clients in reducing and eliminating their unsecured debt. Bonnie has authored many articles, and has been featured in several newspapers and magazines nationally.

Bonnie Krisher, the founder of the debt Settlement Company K&G Debt and Credit Professionals, urges those consumers who are already struggling financially to educate themselves on the debt reduction services available to Canadians and the pros and cons of each.  “Many consumers often allow their financial situation to become irreparable before they research solutions for their debt.  By doing so, they can unknowingly minimize their options,” says Krisher.

According to Krisher, there are four types of debt reduction programs available to Canadians:

• Debt settlement, also known as debt negotiation or debt arbitration.
• Credit counselling.
• Debt consolidation.
• Bankruptcy/bankruptcy proposal.

Statistics Canada reports that the Canadian debt to disposable income ratio has risen to a record high.  For some, debt solutions can begin with a new budget, additional income, and thrifty money managing such as couponing or negotiating better interest rates.  For others, a debt reduction plan may require the help of a debt arbitrator or bankruptcy trustee.  Consumers should use the resources available to them to understand their true financial circumstances, what their options are for debt reduction, and how they may be affected by any changes to their interest rates.  With a plan in place, fewer Canadians will find the need for extreme measures as a result of a financial crisis.

For more information, contact Bonnie Krisher of K&G Debt and Credit Professionals at (250) 871-6000 or go to www.kgdebt.ca.

About Bonnie Krisher

Bonnie is a certified Debt Arbitrator, and is renowned as a leading expert in debt settlement in Canada.  Bonnie holds a Masters of Education, and a Bachelors in Psychology degree, and as the founder and CEO of a debt settlement consulting firm, K&G Debt and Credit Professionals, has successfully assisted her clients in reducing and eliminating their unsecured debt.  Bonnie has authored many articles, and has been featured in several newspapers and magazines nationally.

Once payments are missed creditors like MBNA, TD, Scotia or your local credit union quickly begin to make their phone calls.  Once they realize that there is no way that you can continue to pay them, and their considerable net profit on your account is threatened, they start to send nasty letters.  The most common question for a consumer (debtor) is “what can they do to me?”

Creditors have three options:

1. Send the account to collections (in house and then third party):
2. Settle the account for less than what is owed: or
3. Proceed with legal action.

Why would your creditor prefer to settle?

• Collection companies are limited (prohibited collection practices).
• The consumer can legally have the phone calls stopped, as well as limit the collectors in other ways (i.e. denying that they are the right debtor, etc.).
• Proceeding with legal action is expensive and creditors are not guaranteed to be successful.  Some complications for them include:

1. Provincial court does not often award the return of legal costs, therefore the cost of proceeding with legal action should not be more than the debt amount or they could lose even more than your debt is worth.
2. If the creditor has not retained a copy of the original credit application or agreement, then they can loose in court or provide for a lengthy court battle since they cannot “validate” the debt.
3. The consumer can be “judgement” proof.  Meaning, even if the creditor wins in court, they may not have any means of collecting on the debt (i.e. the debtor is unemployed, does not own any assets, has a joint account).
4. Another possibility is that a creditor could accumulate substantial legal

costs and then the consumer could decide to claim bankruptcy.

There are several reasons why legal action would not be considered a viable option and since collection companies are limited as well; the best option is typically Debt Settlement.  With debt settlement both parties win.  The creditors get some funds and saves time and money trying to collect on the debt, and the consumer wins because they can pay a small portion that eliminates the total debt and stop the vicious cycle of compound interest, providing a fresh start.

The end of the email read “Thanks for your call and making me not feel bad for what we have to do.” This is a direct quote from a gentleman in his mid-fifties needing help with his debt.  During our initial phone conversation, he told me that his children were grown and did not know that he and his wife were in financial trouble.  He didn’t want to worry them, and felt ashamed.  As a Debt Arbitrator, I can safely say that this is one of many conversations that I have had over the past seven years with individual’s middle aged and older.  This secrecy has been difficult to witness.  Older generations tend to consider debt as a reflection of them selves and personalize it, while more recent generations consider debt a problem in and of itself.

Fortunately, in the past couple of years we have noticed an increase in children who are calling in and asking for help on their parents behalf.  Perhaps this is a result of children paying more attention to what is going on with their parents, or, perhaps, parents are increasingly confiding in their children.  Either way this recent intermingling of two financially distinct generations is changing how people face hardship and debt.  Through advocacy, children are able to be more proactive and have a greater impact on the health and happiness of their parents.  Particularly, how their parents health and happiness is affected by financial stress.

Studies have shown that stress is directly linked to health issues.  In fact, the stress associated with debt has been shown to be a significant factor in many areas of life including divorce, depression, suicide, criminal behaviour, and disease.  After several recent studies, the Institute of Science, Technology and Public Policy released this statement, “Ninety percent of disease is caused or complicated by stress. Cost-effective, scientifically proven solutions exist that can alleviate this enormous strain on our country’s human and financial resources.”

Furthermore, “Some of the leading conditions that cause the greatest health burden in this country — heart disease, stroke, cancer, and severe depression — are linked to stress, and to a large extent are preventable. Research has found that cardiac patients who learn to manage stress reduce their risk of having another heart attack or heart problem by 74%, which suggests that stress management is more effective than even exercise in preventing heart disease (The Congressional Caucus on “Stress Prevention: Its Impact on Health and Medical Savings“, Institute of Science, Technology and Public Policy).”

As a debt arbitrator, I would like to make these recommendations.  Parents, recognize how your debt may be causing you stress and/or hardship, and reach out for help.  Your children will welcome the opportunity to work with you to overcome these obstacles.  They are young, very resourceful, and are likely to be much less judgmental than you imagine.  Overcoming a hardship as a family can often draw you closer together.  Your children want to give back to you, and, from my experience, want to help.  The vast majority of Canada is in debt with the average Canadian carrying $25,709.00 in debt.  It is an issue in and of itself.  Creditors are increasingly being held accountable for how they are causing consumers to be entrapped in an increasing cycle of debt.  This is evident in the new legislative changes that have clamped down on how creditors are doing business.  For instance, creditors are now required to obtain expressed consent for credit limit increases, to lower interest costs by mandating allocations of payments in favour of the consumer, and are prohibited from charging over-the-limit fees solely arising from holds placed by merchants (for a full list of regulations visit www.fin.gc.ca).

Children, pay attention to your parents financial situation and ask them questions.  If you sense that they are under stress then let them know that you want to help.  There is nothing more debilitating than feeling alone and isolated.  Reassure them that this can happen to anyone (and believe me, I have represented all demographics).  Finally, do your homework.  I will start you off with a few tips:

1. Consider the options, there are typically four:  debt settlement/arbitration, credit counselling, debt consolidation, and bankruptcy/proposals.
2. Call anyone else that may relate, such as a mortgage broker, financial planner, accountant, lawyer etc., as these people can be useful.  For example, if one of your parents has debt in their name only, and the other parent has their name on the assets (i.e. the house), and the law considers them separate entities, then one cannot be held accountable for the other.
3. Do not give any information to the banks until your parents know how they plan to proceed.  This information is usually documented and can be used against them later on.
4. Research the legislation.  It is typically easy to read and can even be found on line (verify the source of course).  There is the Debt Collections Act, and the Credit Reporting Act, to name a couple).
5. Check out the Statute of limitations for debt collection in your province.  Did you know that in some provinces that if a creditor does not take a debt to court within 2 years, they can NEVER sue that person?  (this is not legal advice of course).  This is important if your parents are already delinquent and it is in collections.
6. Make a list of the pros and cons for each of the four debt management options that I mentioned above.  Remember, that it must make sense.  If the company tells you that your parents are going to pay their debt in full, along with their fee, and end up with a damaged credit report, oh and they are non-profit because the creditors pay them, then perhaps this is not the best option.  Ask about how their fee is paid, what happens to your parent’s credit report, whether they share private financial information with the creditors, and what the consequences are if your parents decide to back out later on.  Finally, check the company’s credibility and read the small print in their contracts.
7. Call K&G Debt and Credit Professionals if you have any questions.  Trust me; we are a pillar of information.

The stress of debt can be inhumane, but families have a chance to use their humanity to overcome it.

Bonnie Krisher, CDA
K&G Debt and Credit Professionals
Ph: (250) 871-6000

What is a Collection Agency?

A collection agency is a business that obtains or arranges for payment of money owed to either a person or a company. When you have an account with a business that is “past due” or in default, the business may turn your account over to a collection agency.

How do I Deal with Collection Agencies?

• In most provinces and territories you must be notified in writing that an account has been turned over to a collection agency. (Agencies are required to do this or to make a reasonable attempt to do so.) The agency will contact you to attempt to collect the money you owe to its client.
• Once the account has been officially turned over to a collection agency, you’ll be dealing only with that agency when making arrangements for payment. It may be best not to contact the original business—this just creates confusion—unless there’s an error in the account. When this is the case, advise both the business and the collection agency.
• When possible, pay the money you owe. You won’t have to deal with the agency once you have paid back the full amount. The agency is not allowed to collect more than the amount you owe and cannot charge for its costs to collect the debt.
• When it’s impossible for you to pay the full amount right away, explain why.
• Offer some alternative method of repayment, either a lump sum at a later date or a series of monthly payments.
• Never send cash. Always make payments in such a way that you have a receipt— either a cancelled cheque from your own bank or a receipt from the agency.
• Always be sure to have enough money in your account to cover any cheques you write to pay back your debt and never miss payments.
• When your financial circumstances change, contact the collection agency immediately and explain how things have changed. Follow up in writing.

Do not treat debts lightly. Leaving them unpaid long enough can result in court action, which
could lead to money being taken from your paycheque and/or your assets being seized.

I Feel I’m Being Treated Unfairly by a Collection Agency

While rules vary across Canada, generally collection agencies are forbidden from doing the
following:

• Trying to collect a debt without first notifying you in writing or making a reasonable attempt to do so.
• Recommending or starting legal or court action to collect a debt without first notifying you.
• Communicating with you or your family such that the communication amounts to harassment, or calling to collect a debt at certain prohibited times (which vary from one province or territory to another).
• Implying or giving false or misleading information to anyone.
• Communicating or attempting to communicate with you without identifying themselves, saying who is owed the money and stating the amount owed.
• Continuing to demand payment from a person who claims not to owe the money, unless the agency first takes all reasonable steps to ensure that the person does, in fact, owe the money.
• Contacting your friends, employer, relatives or neighbours for information, other than to get your telephone number or address. An exce ption would be if any of these people have guaranteed the debt or if you have asked the agency to contact them to discuss the debt or, in the case of your employer, to confirm your employment, your job title and your work address.

If you have concerns about the actions of a collection agency, contact your provincial or territorial consumer affairs office.

Provincial and Territorial Consumer Affairs Offices

Alberta
Website: www.servicealberta.ca

British Columbia
Website: www.consumerprotectionbc.ca

Manitoba
Website: www.manitoba.ca/fs/cca/cpo

New Brunswick
Website: www.gnb.ca/0062/rentalsman/index-e.asp

Newfoundland and Labrador
Website: www.gs.gov.nl.ca/consumer/consumer_affairs/index.html

Northwest Territories
Website: www.maca.gov.nt.ca/operations/consumer_affairs/index.html

Nova Scotia
Website: www.gov.ns.ca/snsmr/consumer/abstracts.asp

Nunavut
Website: www.gov.nu.ca/english/

Ontario
Website: www.ontario.ca/consumerprotection

Prince Edward Island
Website: www.gov.pe.ca/oag/ccaid-info/index.php3

Quebec
Website: www.opc.gouv.qc.ca

Saskatchewan
Website: www.justice.gov.sk.ca/cpb

Yukon
Website: www.community.gov.yk.ca/consumer/index.html

Your credit report is a snapshot of your credit history. It is one of the main tools lenders use to decide whether or not to give you credit.

Your credit report contains information about your past and present personal financial situation, including information about any credit you may currently have, such as a loan or credit cards, banking information, whether you have ever had a debt referred to a collection agency and details of any enquiries anyone has made about your credit.

Your credit report also lists your credit rating on a scale from 1 (you pay your bills within 30 days of the due date) to 9 (you never pay your bills at all or have made a consumer debt repayment proposal to a lender). The report also includes a chart showing your payment history over the last two years and a scale that shows the number of times you paid your bills 30, 60 or 90 days after the due date.

You should check your credit report every year. To get a copy of your credit report, contact each of Canada’s major credit reporting agencies (Equifax or TransUnion). Check that the report is accurate. If there are mistakes you can’t fix yourself through the credit bureau, contact your provincial or territorial consumer affairs office for help.

You might see or hear advertisements from companies that promise to clean up or erase your bad credit report. They charge high fees, usually hundreds of dollars, but may not deliver on their promises. In fact, no credit repair company can do anything you can’t do yourself.

No one can force a credit bureau to remove accurate negative information before the legal time that it must appear on your credit report is up. There are no loopholes or laws that credit repair companies can use to get correct information off your credit report. The only way to repair bad credit is with good credit practices over time.

To learn more about your credit report and credit score, consult Understanding Your Credit Report and Credit Score, produced by the Financial Consumer Agency of Canada (FCAC). It can be found under the Consumer Publications section of their website.

Credit Reporting Agencies

TransUnion Canada
Website: www.tuc.ca

Equifax Canada Inc.
Website: www.equifax.ca

Financial Consumer Agency of Canada (FCAC)

Website: www.fcac-acfc.gc.ca

Provincial and Territorial Consumer Affairs Offices

Alberta
Website: www.servicealberta.ca

British Columbia
Website: www.consumerprotectionbc.ca

Manitoba
Website: www.manitoba.ca/fs/cca/cpo

New Brunswick
Website: www.gnb.ca/0062/rentalsman/index-e.asp

Newfoundland and Labrador
Website: www.gs.gov.nl.ca/consumer/consumer_affairs/index.html

Northwest Territories
Website: www.maca.gov.nt.ca/operations/consumer_affairs/index.html

Nova Scotia
Website: www.gov.ns.ca/snsmr/consumer/abstracts.asp

Nunavut
Website: www.gov.nu.ca/english/

Ontario
Website: www.ontario.ca/consumerprotection

Prince Edward Island
Website: www.gov.pe.ca/oag/ccaid-info/index.php3

Quebec
Website: www.opc.gouv.qc.ca

Saskatchewan
Website: www.justice.gov.sk.ca/cpb

Yukon
Website: www.community.gov.yk.ca/consumer/index.html

Office of the Superintendent of Bankruptcy

National Headquarters
Website: www.ic.gc.ca/osb

Provincial/Territorial Offices of the Superintendent of Bankruptcy

Alberta
Standard Life Tower, Calgary
Telephone: 403-292-5607

Canada Place Building, Edmonton
Telephone: 780-495-2476

British Columbia
Vancouver
Telephone: 604-666-5007

Manitoba
Winnipeg
Telephone: 204-983-3229

Nova Scotia
Maritime Centre, Halifax
Telephone: 902-426-2900

Ontario
Place Bell Building, Ottawa
Telephone: 613-995-2994

Toronto
Telephone: 416-973-6486

Federal Building, Hamilton
Telephone: 905-572-2847

Federal Building, London
Telephone: 519-645-4034

Québec
Québec City
Telephone: 418-648-4280

Montréal
Telephone: 514-283-6192

Saskatchewan
Regina
Telephone: 306-780-5391

Saskatoon
Telephone: 306-975-4298

Provincial and Territorial Consumer Affairs Offices

Alberta
Service Alberta, Consumer Contact Centre
Website: www.servicealberta.ca

British Columbia
Consumer Protection BC
Website: www.consumerprotectionbc.ca

Manitoba
Consumer Protection Office, Manitoba Family Services and Consumer Affairs
Website: www.manitoba.ca/fs/cca/cpo

New Brunswick
Department of Justice and Consumer Affairs
Website: www.gnb.ca/0062/rentalsman/index-e.asp

Newfoundland and Labrador
Consumer Affairs, Department of Government Services
Website: www.gs.gov.nl.ca/consumer/consumer_affairs/index.html

Northwest Territories
Consumer Affairs, Department of Municipal and Community Affairs
Website: www.maca.gov.nt.ca/operations/consumer_affairs/index.html

Nova Scotia
Service Nova Scotia and Municipal Relations, Public Enquiries
Website: www.gov.ns.ca/snsmr/consumer/abstracts.asp

Nunavut
Consumer Affairs, Department of Community and Government Services
Website: www.gov.nu.ca/english/

Ontario
Consumer Protection Branch, Ministry of Consumer Services
Website: www.ontario.ca/consumerprotection

Prince Edward Island
Consumer Services, Office of the Attorney General
Website: www.gov.pe.ca/oag/ccaid-info/index.php3

Quebec
Office de la protection du consommateur
Website: www.opc.gouv.qc.ca

Saskatchewan
Consumer Protection Branch, Ministry of Justice and Attorney General
Website: www.justice.gov.sk.ca/cpb

Yukon
Consumer Services & Infrastructure Development, Department of Community Services
Website: www.community.gov.yk.ca/consumer/index.html

A payday loan is a loan that you have to pay back out of your next paycheque. The companies that offer these loans require you to prove that you have a steady source of income, usually a job, although some lenders also accept proof that you are receiving government benefits or have another type of income.

Lenders usually let you borrow up to an amount that equals a certain percentage of your next paycheque, generally somewhere between 30 and 50 percent. In return, you have to give the lender either a cheque for the amount of the loan and all of the associated fees (postdated to your next payday) or permission to withdraw the total amount from your bank account on your next payday.

Payday loans usually cost much more than any other type of loan, so before deciding to get one, think about whether you have cheaper options. Alternatives include obtaining another kind of loan, such as a credit card advance or a line of credit from a bank or credit union, asking friends or family for help, or finding some way to delay your expenses until you get paid.

Payday loans should be your last resort. Because of the high cost, and because you must pay any loan off in full on your next payday, you may find yourself with even deeper money troubles when that time rolls around. After all, once the loan and the fees are paid off, the amount you have to live on for the next pay period will be significantly reduced. This can lead to a cycle in which you once again have to resort to a payday loan.

If you do decide to get a payday loan, read the loan agreement carefully and make sure you understand the true cost of the loan. Lenders often break down the cost into categories such as "interest" and "administration fees", among others. Regardless of what all of the fees are called, the key is to understand the total amount that the loan will cost you.

Before signing the agreement make sure you understand it and remember to take a copy with you.

Several provinces have passed new legislation to regulate the interest rates of payday loans.

Check with your provincial or territorial consumer affairs office to find out whether there are any rules payday lenders have to follow where you live.

For other information on payday loans, you can also visit the Financial Consumer Agency of Canada (FCAC) online at www.fcac-acfc.gc.ca to find The Cost of Payday Loans.

Financial Consumer Agency of Canada (FCAC)

Website: www.fcac-acfc.gc.ca

Provincial and Territorial Consumer Affairs Offices

Alberta
Service Alberta, Consumer Contact Centre
Website: www.servicealberta.ca

British Columbia
Consumer Protection BC
Website: www.consumerprotectionbc.ca

Manitoba
Consumer Protection Office, Manitoba Family Services and Consumer Affairs
Website: www.manitoba.ca/fs/cca/cpo

New Brunswick
Department of Justice and Consumer Affairs
Website: www.gnb.ca/0062/rentalsman/index-e.asp

Newfoundland and Labrador
Consumer Affairs, Department of Government Services
Website: www.gs.gov.nl.ca/consumer/consumer_affairs/index.html

Northwest Territories
Consumer Affairs, Department of Municipal and Community Affairs
Website: www.maca.gov.nt.ca/operations/consumer_affairs/index.html

Nova Scotia
Service Nova Scotia and Municipal Relations, Public Enquiries
Website: www.gov.ns.ca/snsmr/consumer/abstracts.asp

Nunavut
Consumer Affairs, Department of Community and Government Services
Website: www.gov.nu.ca/english/

Ontario
Consumer Protection Branch, Ministry of Consumer Services
Website: www.ontario.ca/consumerprotection

Prince Edward Island
Consumer Services, Office of the Attorney General
Website: www.gov.pe.ca/oag/ccaid-info/index.php3

Quebec
Office de la protection du consommateur
Website: www.opc.gouv.qc.ca

Saskatchewan
Consumer Protection Branch, Ministry of Justice and Attorney General
Website: www.justice.gov.sk.ca/cpb

Yukon
Consumer Services & Infrastructure Development, Department of Community Services
Website: www.community.gov.yk.ca/consumer/index.html

Advance Fee Scams

Be cautious about advertisements promising guaranteed jobs, guaranteed loans, credit repair,
debt consolidation or similar claims. In many cases, you will be asked to send money in
advance to a company but will receive little or nothing in return.

There have been a number of cases where consumers have being contacted via email and through the mail by bogus retailers attempting to fraudulently obtain credit card information and other personal data. More information on common scams can be found on the Fraud Prevention section of Competition Bureau’s website.

Consumers should be aware of the following:

• Be cautious when responding to advertisements, particularly those that use 1-900 telephone numbers. You can be charged large amounts for calls to 1-900 numbers.
• Be careful about giving out any of your personal information, including your social insurance number, credit card numbers and bank account numbers. Fraudulent businesses could use this information to make unauthorized charges to your credit card or to withdraw money from your bank account. In the case of your social insurance number, while there are no laws preventing businesses from asking for it, you are only required to give it out for a very few specific reasons, such as for tax purposes. Go to the website of the Federal Privacy Commissioner for more information.
• Before you make any payment, ask the business to send you a contract and other information stating the terms of the service and whether you may cancel the service and get a refund.
• Ask how long the firm has been in business and, if required, whether it is licensed in your muncipality, province or territory.Review all contracts carefully. If you are unsure about a contract, take it to a lawyer or trusted advisor for his or her opinion before you sign.
• Contact your provincial or territorial consumer affairs office or the Better Business Bureau to find out about legislation governing business practices where you live.
• When you suspect that advertising is fraudulent, contact the local police, your provincial or territorial consumer affairs office or the Competition Bureau.

You can also learn about consumer scams and find advice on how to deal with them on the Royal Canadian Mounted Police website.

Contact your provincial or territorial consumer affairs office or the Better Business Bureau to find out about legislation governing business practices where you live.

Competition Bureau Canada

Website: www.competitionbureau.gc.ca

Royal Canadian Mounted Police (RCMP)

RCMP Public Affairs and Communications Services
Website: www.rcmp.gc.ca

Office of the Privacy Commissioner of Canada

Telephone: 613-995-8210
Toll Free: 1-800-282-1376

Provincial and Territorial Consumer Affairs Offices

Jump to list below

Misleading Advertising

As part of its goal to ensure consumers have competitive prices and product choice, the Competition Act prohibits a number of marketing practices.

• Misleading advertising occurs when a claim about a product or service is materially false or misleading, in an attempt to persuade the consumer to buy it.
• Double ticketing occurs when a seller puts two or more prices on a product or service, and the consumer is not charged the lowest price.
• Pyramid selling is a multilevel marketing plan that uses certain specific deceptive means to obtain money (see also "Multi-Level Marketing and Pyramid Selling Schemes").
• Bait and switch occurs when a seller attracts customers by advertising a certain product or service at a bargain price and then persuades the customer to purchase a more expensive item, since the seller does not have reasonable quantities of the advertised item in stock.

Consumers may complain to the Government of Canada about any of these practices even when they have no intention of buying the product. Consumers may contact the Competition Bureau to file a complaint or obtain additional information. When the matter relates to labeling or advertising of food, contact the Canadian Food Inspection Agency. You may also contact your provincial or territorial consumer affairs office.

You may also complain to Advertising Standards Canada about misleading advertising. This non-governmental body is made up of advertisers, representatives from advertising agencies and the media, and consumers. It discourages false or misleading advertising by its members through codes of conduct.

See also, "Advance Fee Scams," "Consumer Privacy," "Contracts,"and "Unfair or Deceptive Business Practices".

Competition Bureau Canada

Website: www.competitionbureau.gc.ca

Canadian Food Inspection Agency

Website: www.inspection.gc.ca

Advertising Standard Canada (ASC)

Website: www.adstandards.com

Provincial and Territorial Consumer Affairs Offices

Alberta
Service Alberta, Consumer Contact Centre
Website: www.servicealberta.ca

British Columbia
Consumer Protection BC
Website: www.consumerprotectionbc.ca

Manitoba
Consumer Protection Office, Manitoba Family Services and Consumer Affairs
Website: www.manitoba.ca/fs/cca/cpo

New Brunswick
Department of Justice and Consumer Affairs
Website: www.gnb.ca/0062/rentalsman/index-e.asp

Newfoundland and Labrador
Consumer Affairs, Department of Government Services
Website: www.gs.gov.nl.ca/consumer/consumer_affairs/index.html

Northwest Territories
Consumer Affairs, Department of Municipal and Community Affairs
Website: www.maca.gov.nt.ca/operations/consumer_affairs/index.html

Nova Scotia
Service Nova Scotia and Municipal Relations, Public Enquiries
Website: www.gov.ns.ca/snsmr/consumer/abstracts.asp

Nunavut
Consumer Affairs, Department of Community and Government Services
Website: www.gov.nu.ca/english/

Ontario
Consumer Protection Branch, Ministry of Consumer Services
Website: www.ontario.ca/consumerprotection

Prince Edward Island
Consumer Services, Office of the Attorney General
Website: www.gov.pe.ca/oag/ccaid-info/index.php3

Quebec
Office de la protection du consommateur
Website: www.opc.gouv.qc.ca

Saskatchewan
Consumer Protection Branch, Ministry of Justice and Attorney General
Website: www.justice.gov.sk.ca/cpb

Yukon
Consumer Services & Infrastructure Development, Department of Community Services
Website: www.community.gov.yk.ca/consumer/index.html

Telemarketing

In general, telemarketing refers to the selling of goods or services, for example anything from magazines to chimney and carpet cleaning services, photocopier toner, and even the solicitation of charitable donations over the telephone.

Canadians can sign up for the National Do Not Call List (DNCL) which may help them reduce the number of telemarketing calls they receive and maintain their personal privacy. Canadians can make a complaint about telemarketers who violate the DNCL rules by contacting DNCL operators via their website or by telephone.

The Canadian Marketing Association (CMA) offers a Do Not Contact Service which allows consumers to reduce the number of marketing offers they receive by mail. Visit www.thecma.org for more information on this service. Both these services are free of charge.

Deceptive Telemarketing Practices

While many legitimate businesses use the telephone to make their sales, so do an increasing number of fraudulent companies.

To report deceptive telemarketing practices, contact the Competition Bureau or your provincial or territorial consumer affairs office. You may also contact the Canadian Anti-Fraud Centre.

You can also learn about consumer scams and find advice on how to deal with them on the Royal Canadian Mounted Police (RCMP) website.

Tips for Smart Telephone Shopping

• When you are told that you have won a prize, do not commit to purchase any product or pay any additional fee in order to collect your prize.
• Always keep a record of the name, address and phone number of the person and the company you dealt with, the goods you ordered, the date of your purchase, the amount you paid (including shipping and handling) and the method of payment.
• Keep a record of any delivery date that was promised.
• If you are told that the shipment will be delayed, write the date of that notice in your records along with the new shipping date, if you’ve agreed to wait longer.
• Use Caution and Common Sense
• Don’t be pressured into acting immediately or without having all the information you need.
• When an offer sounds too good to be true, think twice before making your final decision.
• Shop around and compare costs and services.
• Check with your provincial or territorial consumer affairs office or the Better Business Bureau to see whether there have been any complaints about the company.
• Even if you have signed up for the National Do Not Call List (DNCL), registered charities are still allowed to call for donations, and certain other organizations-such as companies conducting polls or surveys, political parties, and newspapers looking for subscriptions-can also continue to contact you. As well, if you’ve done business with a company in the last 18 months, that company is consi dered to have a relationship with you and is allowed to call.
• Deceptive notices of winning a prize may constitute an offence under the Competition Act. To report a deceptive notice of winning a prize, contact the Competition Bureau.

Vishing

Vishing, or voice phishing, occurs when a fraudulent company uses a new technology called Voice over Internet Protocol (VoIP) through the telephone system to falsely claim to be a legitimate enterprise in an attempt to scam people into disclosing personal information. For example, some people may pretend to be calling from governments, financial institutions, as well as online auctions and their payment services.

Typically, there is a recorded incoming message that uses a fraudulent caller ID that matches the identity of a misrepresented organization. The message directs unsuspecting users to another telephone number, and they are then told to enter their personal information using their telephone keypad. Criminals can then capture the key tones and convert them back to numerical format, stealing the information.

Vishing is used to target any numerical data, such as credit card information, personal identification numbers (PIN), social insurance numbers (SIN), dates of birth and bank account numbers.

Being aware of such fraudulent practices is the greatest form of protection, so always be suspicious when you receive unsolicited incoming communications. Never provide personal information over the phone and do not rely solely on caller ID as proof of an organization’s legitimacy.

For more information on vishing, visit the Scams/Fraud section of the RCMP website.

National Do Not Call List

National DNCL Service
Website: www.LNNTE-DNCL.gc.ca

Canadian Radio-television and Telecommunictions Commission

Website: www.crtc.gc.ca

Canadian Marketing Association

Website: www.the-cma.org

Royal Canadian Mounted Police (RCMP)

RCMP Public Affairs and Communications Services
Website: www.rcmp.gc.ca

Competition Bureau Canada

Website: www.competitionbureau.gc.ca

Provincial and Territorial Consumer Affairs Offices

Alberta
Service Alberta, Consumer Contact Centre
Website: www.servicealberta.ca

British Columbia
Consumer Protection BC
Website: www.consumerprotectionbc.ca

Manitoba
Consumer Protection Office, Manitoba Family Services and Consumer Affairs
Website: www.manitoba.ca/fs/cca/cpo

New Brunswick
Department of Justice and Consumer Affairs
Website: www.gnb.ca/0062/rentalsman/index-e.asp

Newfoundland and Labrador
Consumer Affairs, Department of Government Services
Website: www.gs.gov.nl.ca/consumer/consumer_affairs/index.html

Northwest Territories
Consumer Affairs, Department of Municipal and Community Affairs
Website: www.maca.gov.nt.ca/operations/consumer_affairs/index.html

Nova Scotia
Service Nova Scotia and Municipal Relations, Public Enquiries
Website: www.gov.ns.ca/snsmr/consumer/abstracts.asp

Nunavut
Consumer Affairs, Department of Community and Government Services
Website: www.gov.nu.ca/english/

Ontario
Consumer Protection Branch, Ministry of Consumer Services
Website: www.ontario.ca/consumerprotection

Prince Edward Island
Consumer Services, Office of the Attorney General
Website: www.gov.pe.ca/oag/ccaid-info/index.php3

Quebec
Office de la protection du consommateur
Website: www.opc.gouv.qc.ca

Saskatchewan
Consumer Protection Branch, Ministry of Justice and Attorney General
Website: www.justice.gov.sk.ca/cpb

Yukon
Consumer Services & Infrastructure Development, Department of Community Services
Website: www.community.gov.yk.ca/consumer/index.html

Most provinces and territories have laws that protect consumers from unfair or deceptive business practices. Generally, an unfair or deceptive practice takes the form of a claim that would likely mislead the average person.

When you believe you have been deceived, contact the Competition Bureau, the Better Business Bureau or your provincial or territorial consumer affairs office. When the complaint relates to labelling or advertising of food, contact the Canadian Food Inspection Agency (CFIA).

Consumers are also protected against Misleading Advertising.

Competition Bureau Canada

Website: www.competitionbureau.gc.ca

Canadian Food Inspection Agency

Website: www.inspection.gc.ca

Provincial and Territorial Consumer Affairs Offices

Alberta
Service Alberta, Consumer Contact Centre
Website: www.servicealberta.ca

British Columbia
Consumer Protection BC
Website: www.consumerprotectionbc.ca

Manitoba
Consumer Protection Office, Manitoba Family Services and Consumer Affairs
Website: www.manitoba.ca/fs/cca/cpo

New Brunswick
Department of Justice and Consumer Affairs
Website: www.gnb.ca/0062/rentalsman/index-e.asp

Newfoundland and Labrador
Consumer Affairs, Department of Government Services
Website: www.gs.gov.nl.ca/consumer/consumer_affairs/index.html

Northwest Territories
Consumer Affairs, Department of Municipal and Community Affairs
Website: www.maca.gov.nt.ca/operations/consumer_affairs/index.html

Nova Scotia
Service Nova Scotia and Municipal Relations, Public Enquiries
Website: www.gov.ns.ca/snsmr/consumer/abstracts.asp

Nunavut
Consumer Affairs, Department of Community and Government Services
Website: www.gov.nu.ca/english/

Ontario
Consumer Protection Branch, Ministry of Consumer Services
Website: www.ontario.ca/consumerprotection

Prince Edward Island
Consumer Services, Office of the Attorney General
Website: www.gov.pe.ca/oag/ccaid-info/index.php3

Quebec
Office de la protection du consommateur
Website: www.opc.gouv.qc.ca

Saskatchewan
Consumer Protection Branch, Ministry of Justice and Attorney General
Website: www.justice.gov.sk.ca/cpb

Yukon
Consumer Services & Infrastructure Development, Department of Community Services
Website: www.community.gov.yk.ca/consumer/index.html