Debt Settlers Now Regulated

The BC government has now followed other provinces and enacted legislation at curtailing the activities of debt settlers. The new rules will hopefully act to limit some of the abuse that is occurring. Debt settlers, who generally have no professional qualifications and until now have been completely unregulated, have been able to prey on unsuspecting debtors at their most vulnerable time.

 

In many instances they have obtained large upfront payments from people in debt distress (or from their families) using false promises that they will “do a deal” with creditors only to string the debtor along for several months before abandoning them when in fact no deal was ever even likely to be achieved. In some instances they will eventually pass the debtor over to a licensed professional such as a Trustee in Bankruptcy who, in exchange for this referral and potential future referrals from the settler, was willing to turn a blind eye to the fact that the debt settler was just a useless middleman that did nothing of value and should never have been paid a cent.

 

As a Trustee in Bankruptcy (soon to be called Licensed Insolvency Trustee) I have no time for any trustee who is willing to sacrifice their professional integrity by effectively sanctioning abuse of people in financial distress, and to facilitate future abuse, in order to obtain work.

 

At G. Slocombe & Associates Inc. our goal is to fully advise debtors of all of their options and help them chose the route that is best for them in dealing with their debt problems, even if some of those options do not require the services of a Licensed Insolvency Trustee. Needless to say, we do not have any business relationships with any debt settlers.