The Canadian Debtors Association calls for changes to the Bankruptcy and Insolvency Act
Credit, debt and insolvency industry players must work together to strengthen ‘flawed’ law
HAMILTON, ON, February 8, 2022 /CNW/ – The Debtors Association of Canada calls on all parties in the credit, debt and insolvency industry to work together and modernize from Canada Bankruptcy and Insolvency Act (BIA) to help Canadians in financial difficulty.
âA fundamental principle of from Canada insolvency law and policy is to provide a ‘fresh start’ for those burdened with debt,” says Debtors Association of Canada President and CEO Henrietta Ross. âThis principle is widely accepted by legislators, stakeholder groups, academics and insolvency experts. Generally, it is about obtaining relief from existing debt so that debtors can regain control of their finances. .”
But while the BIA intends to make a new start, the debtors see it as a false start, because after having undertaken a BIA-subscribed debt relief solution, debtors encounter problems due to inaccurate insolvency-related reporting on their credit report. These inaccurate reports are widespread and undermine the very foundation of the BIA thwarting the fresh start that Canadians expect and deserve. To resolve this dilemma, new legislation is needed that will stipulate the correct representation of insolvency information in consumer credit reports.
âOver the past few years, there has been an explosive growth in the use of consumer credit and a massive expansion in how consumer credit reports and personal credit histories are used,â says Ross. . “These monumental changes in the volume and use of credit reports affect virtually every important aspect of the daily lives of Canadians.”
Because credit reports wield enormous power, with a significant influence on the livelihoods and well-being of individuals, it is crucial to ensure the accuracy of information. Accurate information is also imperative, as a bankruptcy or consumer proposal is a closely watched part of a consumer’s credit history.
“The BIA must preserve its essential integrity by introducing provisions for clear standards that address information on insolvency filings and regulated measures that ensure the accuracy of such information on consumer credit reports,â says Ross. âNow is the time to strengthen legislation and regulation by adding provisions for insolvency filings to ensure standardization and accuracy of this information on consumer credit reports. Â»
About the Canadian Debtors Association
The Debtors Association of Canada (ADC) is a national, not-for-profit organization committed to creating a better experience for debtors, especially for financially vulnerable individuals and families. CDA’s transformational vision includes introducing better structures, better supports and the care needed for debtors to successfully recover from financial crisis and insolvency. For more information, visit www.debtorsvoice.org
SOURCE Canadian Debtors Association
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