Debtors are the anchor and backbone of the consumer credit industry. The Canadian Debtors Association strongly believes in the rights of Debtors and has established the Debtor Bill of Rights as a framework for the protocols that Debtors should be entitled to.
Debtors are the foundation upon which the Canadian consumer credit industry is built and supported. This industry includes a vast array of direct and affiliated businesses that operate profitably; such as, grantors of credit, collectors of debt, insolvency practitioners, identifiers of potential risk losses and credit reporting agencies, to name but a few. Without Debtors, there would be no consumer credit industry nor the affiliated businesses that are associated with it.
Even though Debtors are the anchor and backbone of the consumer credit industry, the Debtor has historically had no collective voice, has often been shunned and has suffered disrespect in a myriad of disempowering ways by the industry itself – an industry that is totally dependent on the Debtor in order to exist and prosper.
Debtors in financial crisis are at the mercy of systemic flaws within the credit and debt industry where no one is legally prescribed to represent the interests of the Debtor. Organizations that offer options for Debtors to resolve a financial crisis either have a fiduciary duty to the creditors or are funded by the creditors. This unfairly tilts the playing field to advantage the creditors – and fails those that need support the most – the Debtors.
In recent decades, there has been a massive expansion in how consumer credit reports and personal credit history is used. Monumental shifts in the utilization of Debtors’ data has contributed to the exploitation of Debtors’ information. This is due to the vast use of the credit report data and the credit scores of Debtors. This use is well beyond the traditional use purposes of evaluating the Debtor prior to extending credit and during the management and collection of debt.
The credit report data of Debtors has become the profitable basis for wide ranging information gathering, extensive product development and a deep source to support decision-making by both the industry and many businesses outside of it and, frequently takes place for non-credit related purposes. Although Debtors provide this foundational wealth of data, they derive no financial benefit when their valuable information is used for purposes that are unrelated to them.
As the root provider that drives and creates significant business value through the use of their data, Debtors are deserving of a higher economic status for their role in contributing to the success of the industry and many other businesses, as noted above.
So, how is the Canadian Debtors Association going to do that?
The Canadian Debtors Association will shine a light on elevating respect for the Debtor through promoting the Debtor Bill of Rights.
We see a future where these Debtors Rights are fully supported and widely embraced by every aspect of the credit industry.
Canadian Debtors Association will work hard to advocate for universal acceptance of the Debtor Bill of Rights for Canadians.
I welcome you to support and endorse the Debtor Bill of Rights. With wide acceptance of these Debtor Rights, the Debtors’ journey will be vastly smoothed from the current rocky path that Debtors often traverse and must endure. A smoother path provides better footing; not just for Debtors – but for everyone in the credit and debt industry.
Henrietta Ross
CDA President and CEO