What are credit counsellors and debt settlement companies not allowed to do?
They’re not allowed to:
- say they are a charitable or not-for-profit organization if they are not
- claim that their programs are approved by the government if they are not
- promise results that are better than what they actually got for other clients within the last year
- promise results that are not in their control, for example, promising they can stop a creditor from trying to collect a debt
They’re also not allowed to charge you:
- an up-front fee for a making repayment plan, except for a $50 set-up charge
- more than 10% of your debt in a single payment plan
- more than 15% of your debt for each debt payment in an instalment plan
- any fee before they have made an agreement with your creditors and made payments to those creditors
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