Consumer alert: Debt reduction companies

Beware of "too good to be true offers"

OTTAWA, January 10, 2012 /Canada NewsWire/ - The Financial Consumer Agency of Canada (FCAC) today issued a Consumer Alert on debt reduction companies. FCAC is warning Canadians: Be very cautious about companies that claim they can negotiate a deal with your creditors so that you will have to pay only part of your debt. This process is often called "debt reduction," "debt settlement," "debt relief" or "debt negotiation."

Consumers who are looking for information on dealing with their debt will find tips on getting out of debt on FCAC's website at fcac.gc.ca.

About FCAC

With educational materials and interactive tools, the Financial Consumer Agency of Canada (FCAC) provides objective information about financial products and services to help Canadians increase their financial knowledge and confidence in managing their personal finances. FCAC informs consumers about their rights and responsibilities when dealing with banks and federally regulated trust, loan and insurance companies. FCAC also makes sure that federally regulated financial institutions, payment card network operators and external complaints bodies comply with legislation and industry commitments intended to protect consumers.

You can reach them through the FCAC Consumer Services Centre by calling toll-free 1-866-461-3222 (TTY: 613-947-7771 or 1-866-914-6097) or by visiting their website: fcac.gc.ca.