Consumer Debt: Misrepresentation Uncovered

Consumer debt is not only a hot media trend, it is also a reality for a large number of Canadians. The stigma of consumer debt is usually associated with people who are incompetent, but, that is far from the truth.

An article from Macleans covers an interview with a debt consultant. The debt consultant describes a few individuals whom you would never expect to be in debt. A teacher with 8 payday loans. A senior financial analyst with 7 credit cards, all carrying high balances. Then there is a TTC driver with 2 mortgages and $100,000 in credit debt.

The individuals in the Macleans article possess reputable jobs. At the same time, all of those individuals are subjected to consumer debt. Debt can be a slippery slope, for example, once you are approved for a higher credit limit, it is easy to justify spending more money.

Consumer Debt

It is not easy running away from debt.

How To Protect Yourself From Consumer Debt?

One way to protect yourself is to have Ontario’s Consumer Protection Act uncover misrepresentations of contracts. To continue with last weeks’ topic, Ontario’s Consumer Protection, we will cover another tip that can give you more financial stability.

Ontario’s Consumer Protection Act enforces a policy the prevents the false representation of information. The act makes it illegal for a business or an individual to give false information about themselves or the product/service they offer.

Some examples give a better idea of how misrepresentation of information can occur include when a business or individual:

  • Claims they have licences, accreditation or certification when they do not
  • States that their product is of a certain grade, style, model, or quality when it is not
  • recommends unnecessary repairs or replacements

On a positive note, if you sign a contract under pretense, you can withdraw from the contract within 1 year. The Ontario Consumer Protection act can only protect you from debt, it will not get you out of debt. If you are facing a similar situation like the individuals mentioned in the Macleans article, then it is time you seek professional advice.

We are Licensed Insolvency Trustees with the knowledge and experience in addressing the financial issues mentioned above. Our expertise can address any financial challenges you may face, including managing credit and most importantly finding a way to reduce or eliminate overwhelming debt.

If you need help, contact us by emailing or call us at 416 736 4357 (HELP). You can also book a free consultation with no obligations by filling out the contact form on our home page.

Make an appointment today for a custom-tailored solution specific to your situation. We look forward to assisting you.