July 15, 2009

Resources for clients with credit/debt issues

In these tough economic times, you probably have lots of clients asking you for information about credit and debt issues. Here are a few current print, Web, and telephone resources that you could refer them to.

LSS has three useful publications:

• Consumer Law and Credit/Debt Law: This manual for advocates, lawyers, counsellors, and other intermediaries contains useful sections on bankruptcy, creditors, debtors, and mortgages and foreclosures, among others. This manual is currently being revised; if you would like to provide feedback on the content, please fill out our survey.
• Can’t Pay Your Mortgage: What You Can Do If You're Facing Foreclosure: This booklet is available online only, but is currently being revised and will be available in print later this year.
• Aboriginal People and the Law in BC: This manual for legal advocates contains sections on bankruptcy, debt, and consumer issues for Aboriginal people.

For clients who owe money to ICBC, see When ICBC Does Not Issue or Renew a Driver's Licence due to "Motor Vehicle Indebtedness" on the Office of Superintendent of Motor Vehicles website.

For clients who have been charged with shoplifting and received associated "civil demand recovery" letters, see the links provided on the LawLINE FAQ page on the LSS website.

The Bankruptcy and Insolvency Canada website contains useful information. See also the Business Practices & Consumer Protection Authority website.

The Canadian Bar Association has some useful scripts on the Dial-A-Law page of their website. In particular, see scripts #252: "Harassment by Debt Collectors" and #253: "When You Can’t Pay Your Debts." You can also listen to these scripts over the phone by calling 604-687-4680 or 1-800-565-5297 (call no charge, outside the Lower Mainland).

The online UBC Law Students Advice Manual contains useful information in Chapter 10: "Creditors’ Remedies & Debtors’ Assistance."

The Credit Counselling Society is a good resource for anyone who needs help with debt problems. Call 604-527-8999 or 1-888-527-8999 (no charge). They might help create a budget and make a payment plan for debtors. Sometimes they can negotiate that the principal only is payable on a debt. They can help to consolidate debts and will often help by distributing one monthly payment that the client makes to them to the client's various creditors. The first session is free, and after that there is a small charge for their services. They also have a useful website.

Clients who have taken out payday loans should get some legal advice before instructing their bank to stop payment on a cheque, closing the account that the payday loan company knows about, or cancelling a wage assignment that they may have already signed. At present, payday lenders cannot pursue Small Claims Court actions, but this could change in the future.

For more information, call LawLINE or check out the Clicklaw website.