We did not sign up for the consumer proposal

I had contacted a company about debt problems concerning two credit cards. I did my homework, and this company had an excellent rating. We were told that we could settle this for $260.00 a month for 60 months and that our credit would be repaired in one year. I have the paperwork to prove this; she said that it would be a consumer proposal, which we did not understand, and it was not explained (the seriousness of doing this). After they had got almost a $1000.00 out of us, she told us that it was going to be $355.00 a month for 60 months which is almost $100.00 a month more for five years, which we could not agree to because we would never be able to keep up with these payments. We had 2, 5 min meetings with her; we did not sign up for the consumer proposal, and there was no assessment done yet either. Are we entitled to a refund since we never even entered into a contract with this company?

One Response to “We did not sign up for the consumer proposal”

Desmond West-Chow, CIRP, Trustee said...

It’s difficult to say what exactly happened here as it doesn’t appear you’ve dealt with a trustee. Trustees are currently the only individuals allowed to administer consumer proposals, so in order for you to have filed a proposal you should have met with a trustee. One of the issues that arises with companies helping people out with debt, is that if they’re not trustees there’s no regulatory body or licencing that must be adhered to, as there is for trustees in Canada, who are regulated and licences (as trustees and not just a business in general) by the Office of the Superintendent of Bankruptcy, a division of Industry Canada. You may not have any specific recourse for what’s gone since the company you were dealing with may not be regulated. I would recommend contacting the Office of the Superintendent of Bankruptcy with your concern.