Debt Consolidation Services
How We Create Better Conditions Guaranteed Via Debt Consolidation Services
Debt buying and selling is a common practice within the finance industry. Debt buyers are companies that purchase debts in the form of “bonds” from creditors or other debt buyers at a discounted price — and this can directly impact your options for debt consolidation.
Debt sellers may choose to sell their debts for various reasons, such as a need for immediate cash, a lack of resources to pursue collections, or a desire to limit their exposure to risk. Debt buyers may then attempt to collect the full amount owed or sell the debt to another buyer for a profit. This debt trading process often complicates repayment, making debt consolidation an attractive option for many Canadians seeking clarity and control. Debt trading can involve various types of debts, including credit card balances, medical bills, and auto loans.
This process is known as “Securitization”
To put it simply, your creditors may have sold your debt without your prior notice or consent! you can verify this by looking for the “Assignment” clause within your Loan/Credit Card Agreement which usually reads along the lines of this clause taken directly from Fairstone’s Loan Agreement
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“17. ASSIGNMENT: We may, from time to time, without prior notice to you or your consent, sell or assign all or any part of the entire New Balance, Debt, and/or any other obligation(s) under this Agreement.”
Due to this wonderful piece of information, Every Canadian is well within their rights to request “Proof Of Ownership Of Debt” from their Creditors before they are legally obligated to payout their outstanding balance, And if your Creditor is unable to do so that would mean, Lawfully they are no longer entitled to the payment of the outstanding balance!
What Documentation Qualifies As “Proof Of Ownership Of Debt”?
Under the Bills of Exchange Act in Canada, proof of ownership of debt can be established through various forms of documentation. These may include:
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Original Promissory Note: A promissory note is a written agreement that acknowledges a debt and includes a promise to pay the debt on or before a specified date. The original promissory note NOT A PHOTOCOPY signed by the debtor can serve as proof of ownership of debt.
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Endorsement: An endorsement is a written statement on a promissory note or other negotiable instrument indicating that the holder of the instrument has transferred it to another person. A valid endorsement can serve as proof of ownership of the debt.
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Assignment: An assignment is a written document that transfers ownership of a debt from one person to another. A valid assignment can serve as proof of ownership of the debt
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A Sworn Affidavit From A Chartered Accountant: A sworn affidavit is a legal document that is signed under oath and is considered a legally binding statement. In this context, a sworn affidavit from a chartered accountant would be a statement made by the accountant under oath, stating that they have checked the ledgers of a particular entity and can confirm that a specific debt has not been sold.
Why Must The Sworn Affidavit Be From A Chartered Accountant?
A chartered accountant is a professional accountant who has completed a specific program of study and professional requirements, and has passed a rigorous examination in order to earn their designation. They are typically seen as experts in financial matters and are often called upon to provide financial advice and analysis.
In this context, the sworn affidavit would be used to provide evidence in a legal proceeding, such as a lawsuit or arbitration. The affidavit would be considered a statement of fact, and if it is determined that the accountant provided false information, they could be subject to legal consequences.
Overall, a sworn affidavit from a chartered accountant that states they checked the ledgers and a debt has not been sold is a legally binding statement that can be used as evidence in a legal proceeding to confirm the status of a debt.
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Why Should I Request “Proof Of Ownership Of Debt”?
Requiring lenders to prove that they own your debt before paying it out can have several benefits – especially if you’re pursuing debt consolidation as part of your financial strategy.
First and foremost, it ensures that you are paying the right party and not a fraudulent or mistaken entity. It also helps prevent errors in the payment process and ensures that the lender has followed proper procedures in acquiring and transferring your debt.
Additionally, holding lenders accountable for proving ownership can help to deter unscrupulous lending practices and promote transparency in the financial industry. Ultimately, this measure can help protect borrowers’ rights and ensure that their financial transactions are handled fairly and accurately.
By requesting proof of ownership, the borrower can ensure that the lender has a legitimate claim to the debt. This ensures transparency and can prevent fraudulent lenders from taking advantage of borrowers.
Requesting proof of ownership also helps to prevent scams. In some cases, scammers may pose as legitimate lenders and offer loans to unsuspecting borrowers. By requesting proof of ownership, the borrower can ensure that they are dealing with a legitimate lender and avoid being scammed.