Canadians struggling with debt might be able to take advantage of a limitation period. I review this topic in a 90-second YouTube video.
There are two ways that a Canadian with unsecured consumer debt might be able to take advantage of a limitation period. Firstly, where a limitation period has expired on a specific unpaid account he or she could choose not to pay the account. Secondly, a consumer might be able to use the expiry of a limitation period as leverage when negotiating a favourable settlement.
Canadians lack of knowledge about limitation periods
Today there are plenty of firms offering to assist consumers deal with their debt situation. One only has to turn on the radio or go online to see an ad for a large non-profit credit counselling agency or a firm of trustees (Licensed Insolvency Trustees). Furthermore, more and more consumers are turning to debt consultants or intermediaries.
Some of these firms are holding themselves out as providing advice and representation to debt-challenged consumers. Unfortunately, many of these firms would never bother to ask a potential client or client about the date of last payment on an unsecured consumer debt. Failure to pursue this line of inquiry would make it difficult to advise a client that he or she might be able to avoid paying a debt because of the expiry of a limitation period.
Limitation period inquiry is necessary for a debt adviser offering unbiased debt advice
It is impossible for a firm that holds itself out as being an independent unbiased debt adviser not to make inquiries to determine whether or not a consumer can take advantage of a limitation period.
Is a firm marketing its debt relief program or is it offering unbiased debt advice?
If a firm holding itself as providing advice to debt challenged consumers is not making inquiries to determine if a consumer can take advantage of a limitation period then one might ask if the firm’s number one priority is marketing its debt relief program and not providing unbiased independent debt advice.
I explore this issue in more detail in a presentation on Slideshare.