Proposal to allow Credit Counsellors to Administer Consumer Proposals is Rejected.
July 7, 2011
The Office of the Superintendent of Bankruptcy (OSB) rejected a proposal that Credit Counsellors be allowed to administer Consumer Proposals.
The report states:
The OSB is clearly concerned with the level of competency and oversight required to operate under the BIA as an administrator of consumer proposals. With respect to licensing administrators outside the scope of provincial government oversight and accountability, it is the Superintendent’s view that there is a much stronger obligation on the part of the OSB to protect the interest of the consumer. Consumers must have access to full, complete and competent assessment and advice, which means there must be substantial training with respect to the BIA, regulations, directives, legal procedures and court processes. The only training program currently approved by the OSB, and available to credit counsellors wishing to operate under the BIA, is offered through CAIRP and it leads to being tested for knowledge and competency as a trustee under the BIA. Counsellors should be able to pursue such training to acquire the skills necessary to operate under the BIA and offer consumer proposals.
The OSB said that it will remove unnecessary barriers that inhibit productive business relationships from being formed between trustees and credit counsellors where each group (trustees and credit counsellors) would be able to integrate their services and expertise to best meet consumer needs by directing consumers to the right expertise, improving their financial literacy and assisting in their financial rehabilitation.
The full report is available at: http://www.ic.gc.ca/eic/site/bsf-osb.nsf/eng/br02662.html