NOTE: This post was originally published on September 27, 2011. Updated information was added on February 1, 2012 as noted below (updates appear in italics).
Who are these Cambridge Debt Solutions guys? That’s a question I’ve heard a lot lately from people meeting with me in my Cambridge bankruptcy and consumer proposal office. They advertise a lot on the radio, so I decided to check them out.
I started with a visit to the Cambridge Life Solutions website. I clicked on their Better Business Bureau link and it says that “this business is not BBB accredited”, which seemed strange to me (why would you put a link on your website if it doesn’t go anywhere?).
February 1, 2012 update: according to the Cambridge Life Solutions website, in a post dated January 3, 2012, “Cambridge Life Solutions is proud to announce that the BBB has given us an “A-” rating. Cambridge Life Solutions is very confident upon accreditation that our rating may become an “A+”.”
(For the record, here’s the link to the Hoyes Michalos Cambridge Office listing at the Better Business Bureau; we are rated A+).
Then I looked at their Debt Options page. They listed lots of options, like doing nothing or getting a debt consolidation loan, but they didn’t mention filing a consumer proposal. I found it strange that they wouldn’t list one of the most powerful options open to consumers today.
(For the record, here’s the link to the Hoyes Michalos main website where we list debt management options).
I kept digging, and arrived at their FAQ page.
One of the questions is “Can my creditors pursue litigation against me?”, and the answer is, in a debt settlement, “yes”.
(For the record, if you file bankruptcy or a consumer proposal you get legal protection, so your unsecured creditors, like credit cards, bank loans, and income taxes cannot sue you).
Another one of the questions is “will creditors keep calling me?”. They answer that:
Once a creditor has been notified by Cambridge that we have been given permission to communicate with them and see the limited power of attorney we have to communicate and arrange settlements on behalf of your enrolled debts only they will be notified to only contact you via mail. The law clearly defines this in The Business Practises & Consumer Protection Act, Section 116, Subsections 4(a)(i) and 4 (a)(ii)
I’ve been in this business for about 25 years, but I had never heard of the “Business Practises & Consumer Protection Act”, so I googled it, and discovered that this is legislation in British Columbia. It doesn’t apply in Ontario, and certainly not in Cambridge, Ontario.
Strange that a company advertising as “Cambridge” is not in Cambridge, Ontario, or even in Ontario. Sure enough, on the Contact Us page they list an office at 1100 – 1200 West 73rd Ave., Vancouver, British Columbia. Obviously that’s not in Ontario. In fact, it’s hard to see how big the office is, because it appears that that office is an “Execushare” type office, where anyone can rent a room. There’s nothing wrong with that; many new businesses rent smaller space to start; it’s just surprising that they can have lots of staff in a small office like that.
Even stranger, when they issued a press release in July they listed their address as Cambridge Life Solutions, 2416 Main Street, Suite 398 Vancouver, British Columbia, which, according to Google Maps, is a post office box!
Again, it’s not illegal to use a post office box as your main mailing address, but it is strange. It makes me wonder where all of their staff are? They do list a “U.S. Enrollment Centre”, so perhaps all of their staff are in California?
(For the record, at Hoyes Michalos I have about 60 people working for me; that’s how many people it takes to talk to creditors and negotiate settlements in consumer proposals, and to give us the staff to meet with people in person across Ontario).
Fortunately they do list an Ontario address, at 1 Yonge Street in Toronto. I know the building well; it happens to be the Toronto Star building.
I asked one of my Toronto office team members to pay them a visit. Here’s the picture they took of the office directory on September 1, 2011:
1 Yonge Street, 18th Floor, Office Directory
Here’s a close up of the “C’s”, with Cambridge nowhere to be found.
Cambridge Directory - Close Up View
Surprisingly, Cambridge Life Solution’s name doesn’t appear anywhere on the directory. The 18th floor is another Executive Office arrangement, where many businesses can rent rooms or offices and share a receptionist. When we asked the receptionist if they were in, she said “no” without even looking at a schedule, which leads me to believe that they are very rarely ever there.
Cambridge Life Solutions Directory Listing - February 1, 2012
UPDATE: I am posting this update on February 1, 2012. We paid another visit to 1 Yonge Street in Toronto, and the directory sign now does contain Cambridge Life Solutions’ name.
When we asked the receptionist if we could talk to someone from Cambridge Life Solutions she said “of course”, and a pleasant gentleman by the name of Philip M. Allopenna introduced himself. According to his business card he is the Branch Manager for Ontario.
I am therefore happy to report that in fact since my previous investigation Cambridge Life Solutions now has an office that is staffed with people here in Ontario.
I was still curious as to what exactly Cambridge Life Solutions does, so I went back to the internet, and went to the Ontario government’s Ministry of Consumer Services website, and on the Consumer Protection Branch page I did a search for Cambridge Life Solutions and I discovered that Cambridge Life Solutions Negotiation Services, is actually CLS Negotiation Services Inc., and they are actually a collection agency!
Wow! Why would a company that helps you negotiate a debt settlement register themselves as a collection agency? Isn’t a collection agency someone who collects debt?
Again, maybe it’s not a big deal. At least they are registered with the government, which gives them some credibility. To find out more, I reviewed the Collection Agencies Act of Ontario, which regulates all collection agents. Paragraph 1 states that:
“collection agency” means a person other than a collector who obtains or arranges for payment of money owing to another person, or who holds out to the public as providing such a service or any person who sells or offers to sell forms or letters represented to be a collection system or scheme;
That makes sense. Anyone who “arranges for payment of money owing to another person” is a collection agency, so on that basis, Cambridge Life Solutions is a collection agency.
Section 12.2.a of the Collection Agency Regulations says:
(2) No person shall be registered as a collector unless the person,
(a) is an individual who is a Canadian citizen or has been lawfully admitted to Canada for permanent residence and who is ordinarily resident in Canada.
I have no idea how many employees they have in Canada, but you must have Canadian employees to legally negotiate debt settlements in Canada. It appears from their website that at least some of their debt negotiation work is done from California. That’s fine. They have Canadian employees, so that’s perfectly legal. Here’s my question for you:
Do you want to deal with a company in California? Or would you prefer to deal with someone local?
So, what’s my conclusion?
First, Cambridge Life Solutions has nothing to do with the city of Cambridge, Ontario. They are not located in Cambridge, Ontario.
Second, before you hire anyone to do any work for you, check them out. Ask your friends for a referral. Check out their web site, or their Better Business Bureau listing. Find out how they are regulated.
Third, ask where their debt negotiators are located. Even if you don’t want to deal with me or my firm, there’s lots of expertise here in Cambridge, and throughout Ontario; you can find someone local.
Finally, before you hire anyone to deal with your debt problems, meet with them. Do your research. Talk to them on the phone. Talk to my competitors on the phone. Visit their websites. But before you agree to part with your hard earned money, have a face to face meeting with your advisor. Look them in the eye, and decide whether or not they are who you want to use to best represent your interests.
(Obviously I’m biased. I have about 60 team members working at 20 offices across Ontario; we will meet with you in person, and we will meet with you at least twice before we will let you sign anything, or pay anything. You alone will decide when and how we proceed. You will get no high pressure over the phone sales tactics from any member of my team).
There are solutions to debt problems, but the best solution often involves dealing with a competent, honest professional.
Here’s a video of me, Doug Hoyes and Ted Michalos discussing Debt Consultants:
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