SORELY LACKING POST-INSOLVENCY SUPPORT FOR DEBTORSĪfter insolvency, helping debtors to acquire sustainable financial stability is critical and this is also important to our national economy. Long before reaching the state of insolvency, Canadians have an urgent need for credible and impartial financial information and advice that is tailored to their own unique circumstance.ģ. Overwhelming debt is, however, an evolving circumstance, not just a point in time that begins and ends when an insolvency claim takes place.Īlthough the FCAC’s mandate is to promote financial literacy and a general understanding of financial products, incorporating the basic fundamentals of financial literacy into daily life alludes many Canadians. STRUCTURAL INSUFFICIENCIES IN THE OSB AND FCAC ROLESĬurrently, the OSB’s role commences when an insolvency claim is filed. In addition, it precludes our country from designing effective interventions while also severely limiting the ability to forecast and or insulate Canada against future potential economic shocks.Ģ.
This is highly problematic because it prevents developing an understanding of the various root causes of how Canadians come to carry excessive debt and how this debt becomes overwhelming. The necessary capacity to accurately model potential insolvency and insolvency outcomes does not exist. The data that is collected is compiled and held by different entities and jurisdictions and not shared. There is little comprehensive data on Canadian debtor behaviour. Specifically, our concerns fall into the following four areas:ġ. As these witnesses described our national preparedness to meet and recover from the economic crisis created by the pandemic, we became disconcerted that our country is not well prepared to address a potentially vast insolvency crisis that, we believe, may come in the months ahead. Judith Robertson and the Superintendent of Bankruptcy (OSB), Ms.
We observed the testimony of the Commissioner of Financial Consumer Agency of Canada (FCAC), Ms. We keenly follow the government response in all aspects to the pandemic. Over our long history, we have assisted more than 51,000 Canadians to overcome their crushing debt loads and recover their financial health.Ĥ Pillars Consultants hold a deep concern for the unprecedented and difficult moment that Canadians currently find themselves in and what the financial future holds for them as a result of COVID-19. 4 Pillars has been in the business of supporting Canadians facing insolvency for nearly 20 years and we have offices throughout Canada. My name is Reg Rocha and I am writing to you on behalf of 4 Pillars Debt Consultants. Following their testimonies, I sent the Chair of the Committee, Wayne Easter, the following letter sharing my perspectives and what 4 Pillars is hearing on the ground in communities right across the country. Their testimonies revealed the extent to which key Federal regulators know (and don’t know) about what’s to come for Canadians during this public health and economic crisis. On July 7, the House of Commons FINA Committee called the Superintendent of Bankruptcy and Commissioner of the Financial Consumer Agency of Canada as witnesses to discuss their responses to the COVID-19 pandemic.
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