Four consumers, including one from Squamish, were recently refunded a total of $8,900 after a debt pooling company did not have their money forwarded to their creditors as required, Consumer Protection B.C. officials said in a statement issued on Tuesday (June 7).
The firm, RAFP Canada Credit Services Inc., operating as Canada Debt Assistance, was licensed with Consumer Protection B.C. until 2008, when the business closed, officials said.
A debt pooler is a person who accepts and distributes clients' money to their creditors in accordance with an agreed-upon repayment program. By law, debt poolers must be licensed with Consumer Protection B.C., a not-for-profit corporation that helps with enforcement of the province's consumer protection laws.
Consumer Protection B.C. officials reminded consumers and businesses that debt poolers are required to provide a written contract that must be signed by the consumer, must hold consumer money in a trust account and provide security to Consumer Protection B.C., and must distribute the money received from the consumer to the creditor(s) within 30 days after the end of the month in which the money is received.
For information about B.C.'s Business Practices and Consumer Protection Act, or about Consumer Protection B.C., visit www.consumerprotectionbc.ca.
