Regulation - LGIC

Proposed Rules for Debt Settlement Services Providers

Regulation Number(s):
Bill or Act:
Collection Agencies Act (Collection and Debt Settlement Services Act)
Summary of Proposal:
Help Improve Debtor Protection

The Stronger Protection for Ontario Consumers Act (Bill 55) which received Royal Assent on December 12, 2013, protects vulnerable debtors who use debt settlement services.

This act will amend the Collection Agencies Act, changing its name to the Collection and Debt Settlement Services Act (CDSSA). These new rules: ban providers from charging fees before they deliver services; offer debtors a 10-day cooling-off period during which contracts can be cancelled for any reason, and ban false advertising.

Regulations must be developed so the new debt settlement services rules can operate. This paper proposes rules that would become part of Regulation 74 under the CDSSA.

How You Can Help

The Ministry of Consumer Services wants your help as we write these new rules about debt settlement services. These new rules will apply to companies that offer debt settlement services, including credit counselling organizations. This paper explains and sets out proposals for:

1. Prohibited representations
2. Required representations
3. Fee limits
4. Contracts
5. Prohibited practices
6. Record keeping
7. Existing rules
8. The in-force date

We are looking for your feedback on these proposals.

You may submit your comments and ideas: to the Regulatory Registry; by e-mailing them to; consumerpolicy@ontario.ca with "Debt Settlement" in the subject line; or by mailing them to:

Debt Settlement Consultation
Consumer Policy and Liaison Branch
Ministry of Consumer Services
5th Floor, 777 Bay Street
Toronto, ON M7A 2J3

You may submit them directly or use the feedback form provided.

Thank you for taking the time to review these proposals. We look forward to your response.
Further Information:
Proposal Number:
14-MCS007
Posting Date:
March 20, 2014
Comments Due Date:
April 30, 2014
Contact Address:
Ministry of Consumer Services
Policy Branch
777 Bay Street, 5th Floor
Toronto, ON M7A 2J3
Attention: Debt Settlement Consultation