Debt-assistance company has licence revoked
Published Monday, January 12, 2009 6:24PM MST
Canada Debt Assistance has had its licence revoked by the province.
Sandra Burton says the move to shut the company down does not surprise her.
It's the same company she hired to help her consolidate and pay off her $25,000 debt and she says there were signs of trouble back on 2005. That's when Burton says the company failed to pass the automatic withdrawals it took from her account onto her creditors.
Then in 2007, when Burton's debt was supposed to be fully paid off, the company's record showed she still owed money. "We have no idea how bad it is and how much they have and what's been paid out anymore," says Burton.
On December 31st, Service Alberta cancelled the business licence of CDA. When asked, the province said it could not elaborate on the reason for their actions.
CTV's Lea Williams-Doherty did some digging though and found an agreement made between CDA and the province in March. In that agreement, the company admitted to mishandling the trust account where client's funds were held. The agreement also stated if CDA did not meet certain obligations, its licence would be revoked.
CTV News has also learned that CDA has also been shut down in Manitoba and British Columbia.
Williams-Doherty advises anyone who has been wronged by CDA to contact Service Alberta and file a complaint. That way you will be kept in the know about information about the company and what further investigations may turn up.