Frequently Asked Questions

This is our Frequently Asked Questions Page:

  1. Do I have to walk into your office if I qualify?
    At Canada Debt Settlements, we deal with clients all across Canada via telephone, fax & e-mail. Physically visiting our office is an option of course, but not a necessity.
  1. Is Canada Debt Settlements licensed?
    Proudly licensed by the Ministry of Government and Consumer Services, we realize at Canada Debt Settlements that disclosing personal financial information with anyone in general is definitely not on the top of one's priority list. Simply put, most individuals would rather not discuss their financial hardship unless necessary. We understand it is a very emotional subject and want you to feel completely comfortable when approaching our services. Our clients' funds are fully protected and insured by our Trust Account (Similar to a lawyers) and provincial bonding to ensure that settlements, when approved, are processed efficiently.
  1. Why should I use Canada Debt Settlements to settle my debts as opposed to handling it myself?
    Canada Debt Settlements has extensive experience in negotiating debt and working with creditors. We have established relationships with creditors and collection agencies, which are usually unwavering in negotiating with the consumer directly. Our team has extensive knowledge about consumer debt and the Collection Agencies Act.
  1. When will Canada Debt Settlements begin settling my debt?
    Once you have fully retained our services, your creditors will be notified immediately of our intentions and we will begin the settlement negotiation process. However, Canada Debt Settlements will only settle a debt once the settlement funds are available in your settlement trust account. Our experienced staff will review all possible arrangements for settlement disbursements.
  1. What if my creditors won't settle?
    Creditors will refuse to settle in very few circumstances. In any form of negotiation, one will see both offers and responding counter-offers. A settlement is agreed upon in most instances. Creditors often recognize the effort shown by the applicant and see the approach as more desirable than insolvency alternatives. When a consumer files for bankruptcy protection the creditor may be left with nothing but some physical assets.
  1. Will I still receive harassing Creditor calls?
    Canada Debt Settlements is well-versed in the area of debt recovery legislation. As of the moment a consumer becomes our client, legal documents are faxed to creditors or their agents (collection agencies) to direct all communications, written or verbal, to Canada Debt Settlements on your behalf. Your Debt Consultant will act on your behalf in an attempt to control or reduce undesired communication. It is important to note that swift action is key and inaction may test a creditor's patience.
  1. Do I keep paying my credit card bills?
    Debt settlement companies should never ask you or tell you to stop paying your credit card minimums. It has to be your decision and responsibility to honour your obligations to your creditors throughout the debt settlement process, if you are able to do so.
  1. How does this affect my Credit Report Score?
    Unlike credit counseling or bankruptcy, entering our program is NOT part of your credit report. Your employer, landlord or any other organization who may view your credit report will NOT see that you are in our debt relief program. If your accounts are currently in collections, it will cause no further damage to your credit rating and debts will reamin in their current rating reflecting a 'Settled In Full' status. If your accounts are not in collections the effect on your credit depends upon your current credit score.
  1. Why should I use Canada Debt Settlements instead of a "non-profit" company?
    Most "non-profit" companies ask for a large retainer fee and most of them impose unrealistic budget requirements. You keep paying the overwhelming balance you currently have, with interest, though they may be able to lower your interest by a few points.
  1. Will you share my information with anyone without my explicit consent?
    No. Canada Debt Settlements will NEVER share private consumer information without your written consent.
  1. How long will it take for me to complete the program and be debt free?
    As soon as settlement funds are deposited In Trust, negotiations will commence and it could be within as little as a week before we may present you with letters from your creditors, certifying a settled-in-full status on your accounts. All offers and counter-offers are confirmed with you, our client, prior to any disbursements from Trust.
  1. Does Canada Debt Settlements keep my financial information private and confidential?
    Yes. Your financial information will be kept confidential. Only Canada Debt Settlements licensed staff will have access to your debt reduction account. Only authorized creditors will be informed that we are assisting you with your finances. In addition, Canada Debt Settlements DOES NOT report to the Credit Bureau.
  1. Why do creditors agree to reduce my debt?
    Your creditors are willing to work with us because of the tremendous amount of debt that exists today. Canada Debt Settlements has established excellent working relationships with hundreds of creditors. Creditors prefer for you to seek out voluntary re-payment methods such as the help of a debt reduction company, as opposed to filing for bankruptcy as many Canadians already have.
  1. Is Debt Reduction similar to Bankruptcy?
    Absolutely not! Debt reduction is geared towards individuals who still have the means to repay their creditors. But, due to financial hardships, these individuals seek the assistance of a program to get their creditors to agree to a reduction of their debt. Bankruptcy is designed to absolve you of all your financial obligations and results in long-term negative effects on your credit.
  1. Do I have to give up all my credit cards?
    No. Unlike all Consumer Credit Counseling programs (Non-Profit), with Preferred Financial Services like Debt Settlement, you only have to enroll the debts that you want to be reduced.
  1. How does "Debt Settlement" reflect on my credit history?
    Canada Debt Settlements is licensed under the ‘Collection Agency Act’ via the Consumer Protection Branch, and through our debt-settlement process, the only notation on your credit file is “settled-in-full”. Unlike bankruptcies, consumer proposals, credit counselling and other re-payment programs, ours is not an OPD (Orderly Repayment of Debt) program, and our name does not reflect on our credit file. There is no amount of time that needs to pass by before anything is removed. You can chose whether you want to settle just one, or all of your accounts. Of course, not all applicants qualify for this program and there are variations of this approach, depending on what your exact circumstances are. Are your accounts currently late? Are you a home-owner? Are any of these account jointly-signed? Are you currently working? How many people in your household? What is the total amount of debt that you are looking to reduce? The answers to these questions will allow us to better understand your situation and better assess all of the programs available to you, both private and government.