What must a debt settlement agreement include?
A debt settlement agreement must include your name, address, and phone number. It must also include:
- the credit counsellor or debt settlement company’s name, address, phone number, fax numbers, email address, and website
- their Ontario registration number if they are a debt settlement company
- whether they expect to get a fee from your creditors in exchange for getting you to enter into the agreement
- a detailed list of all services they will provide
The agreement must show the date the agreement was made, and its end date. The end date must not be more than 18 months after the latest of:
- the date you make the agreement
- the last day you make a payment under the agreement
- the last day the credit counsellor or debt settlement company settles a debt under the agreement
The agreement must have information about all the debts covered in the agreement. For example, it must include each creditor’s name, the total amount you owe each creditor, and the interest rate each creditor is charging you.
The agreement must say whether they will offer your creditors an instalment plan or a single payment plan. And when they will make payments to your creditors, or a one-time payment.
Finally, the agreement must say they will give you a written report on the performance of the agreement within 15 days after you ask for one.
Make sure you understand your agreement before you sign it. It’s a good idea to talk to your creditors to make sure they accept your repayment plan.
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