Debt Repayment

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As a consumer, when you are looking for help to manage your debt, it can be difficult to choose between the different options.  Some business models are licensed and regulated by Consumer Protection BC while some are not.

Debt repayment agents are licensed and regulated in BC. 

The Debt Collection and Repayment regulation includes an official definition of a “debt repayment agent”.  In general terms, a debt repayment agent is anyone who acts for or represents a debtor in arrangements or negotiations with a debtor’s creditors, for a fee. 

In addition to licensing requirements, the law also states that:

  • Debt repayment agents must provide written contracts with specific contract disclosures, such as a list of all fees to be paid by the debtor and when they must be paid.
  • Certain terms and conditions are not allowed in contracts with debtors, such as not allowing the debtor to communicate with their creditors.
  • A debt repayment agent can’t charge up-front fees until a repayment proposal has been agreed to by both the debtor and creditor(s).
  • A debt repayment agent must account for and pay the money collected, to the proper creditor within a specific time frame
  • If the debt repayment agent is unable to locate the creditor they must provide the money back to the debtor within 60 days.
  • Debtors must be notified within 30 days when a creditor has declined or not responded to a debt repayment proposal.

To better understand the regulated business models and their fees, please click here.

There’s more to know about your rights and responsibility when it comes to debt repayment. For more information please read the debt collection and repayment regulation in full.