Rely On Accredited Financial Professionals

Credit counselling agencies are found throughout Canada and have many different names. You should look closely at any agency before seeking help.

Our not-for-profit agency Credit Canada, a registered charity, is well known. We have been helping people with debt problems for more than 40 years. All our counsellors are highly trained and certified. We are trusted in Canada. We are a long-time member of an official association called Canadian Association of Credit Counselling Services (CACCS) – known regionally as the Ontario Association of Credit Counselling Services (OACCS). Also, for the last three years running, we have won Canada’s Consumers' Choice Award.

Avoid "Debt Settlement Programs" and Other Quick Fixes

Be careful that you don’t confuse credit counselling services with people offering something called “debt settlement programs” – often seen in TV commercials. They claim you can pay a lot less to settle your debts, but the debt settlement programs do not always work as promised and you may be left with a bad credit rating. For guidance and help, rely only on accredited, qualified financial professionals.

Many credit counselling agencies provide valuable advice, education and assistance, but consumers need to be wary of the "quick fixes" offered by some organizations. Consumers can help protect themselves from deceptive credit counselling practices by knowing how to choose a credit counsellor. If you are in need of credit help, a counselling agency may be able to work out a Debt Management Plan for you. Credit counselling agencies negotiate special programs with creditors that are not available to the general public. 

Choosing an honest reputable credit counselling agency can be one of the most important personal finance decisions of your life. Use the following as a guideline to help you choose wisely:

• Check with the Better Business Bureau to find out if consumers have filed complaints about the provider you are considering. Most importantly, find out if the issues have been resolved.
• Know your rights under the Financial Consumer Agency of Canada
• Make sure to use a registered charitable organization. A non-profit status alone does not insure that the organization will do a good job, but coupled with fair fees and educational material it is a good indication of a reliable organization.
• Remember that credit counselling agencies cannot erase your credit history. If an agency claims to be able to do so, do not work with them. Under the Credit Reporting Act, accurate information about your accounts can stay on your credit report for up to seven years.
• Find out what other sources of funding they receive, who regulates and audits their operation, if their counsellors are trained and by which association, and if there is a formal written agreement.
• Ask if you will continue to receive statements from your creditors showing what interest rates you are paying and the reduction of your debt each month.
• What is the monthly maintenance fee?

Make sure your creditors are willing to work with the agency you choose. If they are, follow up with those creditors regularly to make sure your debt is being paid off.

What Should You Expect From a Counsellor?

A trained counsellor will:

• Do your budget, including your expenses and income.
• Figure out the total amount of debt you owe.
• Arrive at a figure you can pay each month toward that debt while satisfying your creditors' requirements.
• Review all relevant debt repayment options.