Companies Have Already Found A Way Around Ontario’s New Debt Settlement Law

Settle your debts! Stop collection calls! Avoid bankruptcy!

Those are the types of lofty promises made by debt settlement companies that were supposed to be a thing of the past in Ontario as of July 1.

The province’s Collection and Debt Settlement Services Act, which places strict limits on how much debt settlement companies can charge financially strapped consumers for their services, has already driven some companies out of business. But industry insiders believe others are skirting the rules by continuing to operate without a licence or partnering with law firms, which are exempt from the new legislation.