361 –  How Not to Get Scammed by a Debt Consultant

361 – How Not to Get Scammed by a Debt Consultant

Author: Doug Hoyes July 31, 2021 Duration: 32:53

Unlicensed and unregulated debt consultants prey on vulnerable, indebted Canadians. They say they can eliminate your debt, but all they really do is charge you a big fee and then refer you to a Licensed Insolvency Trustee to file a consumer proposal. On today's podcast, Ted Michalos and Doug Hoyes discuss how debt consultants work, how to prevent yourself from getting scammed by them, and provide their recommendations on how this unregulated industry should be eliminated. Tune in for a great discussion!

 

Additional Links:

 

Podcast 220: The Cold-Hard Truth About Unlicensed Debt Consultants: https://youtu.be/6ESHYGnwcOU

Ontario Government – search for a collection agency: https://www.ontario.ca/page/search-business-licence-registration-or-appointment

Government of Canada - search for a licensed insolvency trustee: https://www.ic.gc.ca/app/scr/tds/web

How Credit Counselling agencies really work today: https://www.hoyes.com/blog/a-different-view-of-credit-counselling/ and

https://www.hoyes.com/blog/are-not-for-profit-credit-counselling-agencies-now-just-debt-collectors/

Hoyes Michalos Joe Debtor Bankruptcy Study  https://www.hoyes.com/press/joe-debtor/

Ontario Ministry of Government and Consumer Services  https://www.ontario.ca/page/ministry-government-and-consumer-services

Ontario Collection and Debt Settlement Services Act https://www.ontario.ca/laws/statute/90c14

$23 million in fees paid to debt consultants – OSB data: https://www.ic.gc.ca/eic/site/bsf-osb.nsf/eng/br03754.html

 

Time Stamps:

 

3:08 What is credit counselling?

4:42 What is a consumer proposal?

5:50 How 'debt consultants' work

7:59 The debt consultant business model

11:22 What are debt consultant tricks?

13:50 What questions to ask when meeting with a debt professional

23:10 Advice to the Office of the Superintendent of Bankruptcy to better regulate debt consultant scams


Doug Hoyes sits down each week with a different specialist to untangle the complicated feelings and hard numbers around owing money. The conversations in Debt Free in 30 move beyond simple scare tactics or dry theory, focusing instead on actionable strategies for managing debt, rebuilding savings, and making informed investing choices. You’ll hear from trustees, financial planners, and counselors who explain concepts in plain language, stripping away the industry jargon that often leaves people feeling overwhelmed. Whether it’s navigating a consumer proposal, understanding credit scores, or starting to invest with a tight budget, this podcast provides a clear-eyed look at the steps toward financial stability. Doug’s approach is grounded and pragmatic, reflecting his deep expertise in the field, making each episode feel like a direct consultation with a knowledgeable guide. Tuning in regularly offers a consistent source of demystified advice, turning what can be a stressful topic into a manageable process. It’s that blend of expert insight and relatable conversation that defines this particular personal finance podcast.
Author: Language: English Episodes: 500

Debt Free in 30
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