{June 9, 2011} VICTORIA,  BC – Consumer Protection BC refunded a total of $8,900 to four consumers who did not have their money forwarded to their creditors by RAFP Canada Credit Services Inc. (RAFP), operating as Canada Debt Assistance, as required by the Business Practices and Consumer protection Act. The company was licensed with Consumer Protection BC until 2008 when the business closed.

A debt pooler is a person who accepts and distributes a client’s money to their creditors in accordance with an agreed upon repayment program.   Under the law in BC, debt poolers must be licensed with Consumer Protection BC and are required to maintain a trust account and provide security to safeguard consumer money.  The security is used to compensate debtors if the funds collected by the debt pooler are not forwarded to creditors, as in this instance.

By law, debtors have two years from the date the debt pooler stopped operating to make a claim against the security held by Consumer Protection BC.  That period expired December 31, 2010 and all four consumers have now received their reimbursements. 

Consumer Protection BC is reminding consumers and businesses that debt poolers are required to do the following:

• Provide a written contract between the debt pooler and the consumer which must be signed by the consumer.
• Hold consumer money in a trust account and provide security to Consumer Protection BC.
• Distribute the money received from the consumer to the creditor(s) within 30 days following the end of the month when the money is received.

You can view the BC law regarding debt in full by clicking here.

Consumer Protection BC is a not-for-profit corporation that was created to strengthen consumer protection in BC and enforce consumer protection laws. We balance the interests of all parties to promote a marketplace that is fair for both BC consumers and BC businesses. We license and inspect specific industries, respond to inquiries through our Inquiry Centre, investigate alleged violations of consumer protection laws, and educate consumers and businesses about their rights and responsibilities under the law.  For more information about our organization, please visit our corporate website at www.consumerprotectionbc.ca.

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