
WHY AND HOW TO BECOME A MEMBER OF THE ASSOCIATION?
November 16, 2023
BRANCH MEETING – webinar
December 6, 2023Click here for attachment: RC NCR Reckless Lending Guidelines – edit 02112023 Ryan Lepart
We attended a meeting with all the parties involved in the industry on December 5th, 2023. We have attached the original document that all parties provided comments on and discussed.
DCASA highlighted the importance of protecting the interests of all parties involved and ensuring that the guidelines do not alter the rights and responsibilities established by the Act. While it is important for Debt Counsellors to avoid submitting reckless applications for investigations without proper consideration, Credit Providers should also fulfil their obligations by providing the required documents according to the statutory obligations of the Act and acting in good faith.
We also discussed the assertion that a Debt Counsellor is only required to raise the issue of reckless credit at the form 17.2 stage, after which the Credit Provider is not obligated to assist in the process and provide any documents. We believe that the case law referenced in the attached document has been misinterpreted, but we are seeking confirmation from all parties on whether this should be removed. We believe that there are other prescribed laws and remedies that may prevent a consumer from alleging reckless credit if it does not align with the Act, but a consumer should not be limited to the 17.2 timeline.
DCASA also seeks clarification on why the NCR has stated that they will not assist in compelling Credit Providers to provide documents if they fail to do so. We believe that the current process of having to resort to court to access documents is not ideal, and Consumers and Debt Counsellors should be able to seek assistance from the NCR, as outlined in the Act.
Furthermore, we have requested that the Reckless Credit Fee and the timing of its payment be transferred to the DC Fee review subcommittee for further discussion, as these terms were not included in the original terms of reference and discussion.
The points mentioned above are the relevant issues that we raised, and we now await feedback from the NCR and all other parties after they have consulted with their respective associations.