The Truth about Credit Counseling and Consumer Proposal
There are many companies currently advertising to consumers that they can reduce your debt by committing to a consumer proposal which is a 5 year program.
Consumer proposals and credit counseling services place your Credit Portfolio on hold because they damage your credit for combined 8 years all together. (5 years proposal/credit counseling) + (3 years after proposal/credit counseling completed that negative information R7 drops off your credit report) 5+3=8 years
Every 6 years negative information must drop off your credit report allowing for the 7th year restart because it's the Law. 6 years is calculated from the last date of activity; which is the last date you made a payment to the derogatory account.
Which means that if you haven't made a payment in 5 years on an account (Trade Line) and decide to enter a Consumer Proposal or Credit Counseling Service at the 5 year mark; you restart the 6 years because you changed the Last Date of Activity.
Doing this would damage your credit for 13 years. Where as if you allowed the negative Trade Line to drop off, or negotiate to settle the debt with a letter of deletion your credit portfolio would be in good standing 1 year later instead of 13 years later based on this particular scenario.
It is illegal for a creditor to change your Last Date of Activity without you making a payment: doing so resets the Last Date of Activity causing negative information to stay on your credit report longer than 6 years.
We are the only company that protects your credit portfolio when negotiating to restructure and settle debts.
Your Credit is Important.