Information for debt settlement service providers

The Collection and Debt Settlement Services Act provides more protection to debtors when dealing with debt settlement services providers by:

  • prohibiting debt settlement providers from charging fees until a debtor begins making payments to creditors, other than a one-time fee of no more than $50 where the debt is repaid in installments
  • limiting the total amount of fees a debt settlement provider can charge
  • giving debtors a 10-day cooling-off period during which the debt settlement services contract can be cancelled, without a reason
  • requiring a “what you need to know” cover page for each one-time debt settlement or debt repayment contract with a debtor
  • ensuring that all advertising indicates the registered name and registration number of the debt settlement services provider

Cover pages

All new debt settlement contracts must include a mandatory cover page that outlines the debtor’s rights.

The service provider must:

  • attach the page to the debtor’s contract before signing
  • add the service provider name, contact information and registration number to the bottom of the page
  • complete the box that lets a debtor know how much they have to save before the provider will negotiate with creditors (where applicable)
  • secure the debtor’s signature and date on the cover page

The service provider may not make any modifications to the document (including changes to the page size).

Settling debt

This cover page must be the first page of all one-time debt settlement contracts.

Repaying debt and credit counselling

This cover page must be the first page of all debt repayment contracts.

Information for Businesses