Avoiding Unlicensed Debt Professional Pitfalls – Aimee’s Story

Aimee found herself drowning in $55,000 of credit card debt, desperately seeking a way out. Like many people in her situation, she turned to the internet for guidance, searching for “help with debt.” Among the search results, she came across an unlicensed debt consultant promising a solution. The cost? A seemingly reasonable fee of $1,300, in addition to a monthly payment of $260 for a consumer proposal.

Feeling the weight of her financial burden, Aimee quickly signed an agreement with the unlicensed debt consultant, believing she had found a lifeline.

Thankfully, while exploring her options, Aimee also filled out a form on our website, prompting one of our Licensed Insolvency Trustees to reach out to her.

Throughout the free consultation. The Trustee let Aimee know about the risks of her current path. Unlike the unlicensed consultant, a Licensed Insolvency Trustee doesn’t impose upfront fees, abides by strict ethical guidelines, and is regulated by the federal government.

Not to mention, the consumer proposal being pushed on her was not the most suitable option considering her financial circumstances.

After her consultation with Smythe Insolvency, Aimee severed ties with the unlicensed consultant. She had to cut her losses with the $180 installment that she had paid towards her fees, but the remainder of the unnecessary fees, that would drain her already tight budget, were halted.

The Licensed Trustee presented Aimee with a clear understanding of both consumer proposals and bankruptcy, empowering her to make an informed decision.

Given Aimee’s financial constraints as a recipient of social assistance, bankruptcy emerged as the more viable solution. In just nine months, we eliminated her $55,000 debt at a total cost of $1,800—only $500 more than the upfront fees she was initially prepared to pay.

Aimee’s journey serves as a powerful lesson for anyone grappling with debt: always conduct thorough research and never engage with unlicensed debt professionals. A Licensed Insolvency Trustee, like those at Smythe Insolvency, offer free consultations and adhere to transparent fee structures, ensuring clients receive the support they need without undue financial strain.