Recently, the OSB issued a report into its Review of Licensed Insolvency Trustee business practices in relation to the administration of consumer insolvencies. It followed that up in its recent newsletter that it was planning certain regulatory initiatives to address its findings. That article can be found here.
It is clear from both of these publications that the OSB is taking steps for LITs to become more responsible for the entire insolvency process. The OSB was also concerned that debtors were paying too much for debt services that they don’t need.
The OSB has published articles on why debt advisors/credit counselors are not required. That article can be found here.
It has published articles on what an LIT does and why people in financial difficulty should use them and no other service provider. That article can be found here.
They have a search feature on their website that allows you to search for an LIT who has a license. That page can be found here.
To get to my point and the headline, it is clear that Licenses Matter.
When dealing with debt, LITs are the go to professionals. LITs add value to the system of dealing with debt. LITs are highly trained individuals, can provide you with a range of options, and they are the only professionals who can provide access to regulated insolvency options, such as consumer proposals and bankruptcies. Licenses Matter!
If you are in debt and the company or individual you are dealing with doesn’t have a license issued by the OSB, they cannot help you file a proposal or bankruptcy. All they can do is refer you to an LIT for a fee. A fee you don’t have to pay.!