HAMILTON, ON, March 24, 2020 /CNW/ - The Canadian Debtors Association (CDA) urges the federal government to immediately declare a national payment pause period due to the massive loss of employment that is lambasting family incomes, while Canadians endure the precipitous impacts of the Covid-19 pandemic health crisis.
"With the sweeping number of Canadians abruptly finding themselves with vastly diminished or no income, coupled with the emotional toll of anxiety, fear and uncertainty for what lies ahead, there is very little chance they will be able to cope beyond putting food on the table" said Henrietta Ross, CDA's President and Chief Executive Officer.
A bold measure to pause payments is required immediately across the consumer credit, housing, utility and insolvency industries; including all debts, rents, mortgages, household utilities and also, the payments for consumer proposals already filed under the Bankruptcy and Insolvency Act, to avoid default into personal bankruptcy.
The moratorium on payments must take place now and remain until three months after the pandemic passes, to allow Canadians to get back on their financial footing. In addition, the collections industry must stop all activity to collect on outstanding consumer debt during the payment pause period.
According to Ross, "Forcing Canadians to individually reach out to their creditors to request payment relief is burdensome and already overwhelming the capacity of creditors to keep up with the demand for relief. This is an untenable process for all concerned and contributes to why a payments moratorium is so important and necessary".
"Canadians with the financial means may continue to make their payments, however, for those thousands and thousands of individuals and families who are experiencing collapse in their household income, a nationally mandated payments pause over the coming weeks and months is a must", Ross added.
Other countries around the world have taken payments moratorium action for their citizens – Canada needs to do this now, as well.
About the CDA
The Canadian Debtors Association is a national non-profit organization that is committed to helping individuals and families, particularly those who are financially vulnerable, to have a better Debtor experience and successful recovery from financial breakdown and insolvency. As the voice of the Debtor, CDA is the industry advocate that supports and acts solely for Debtors. To learn more, see http://www.debtorsvoice.org/
SOURCE Canadian Debtors Association
For further information: Henrietta Ross, E: [email protected], T: 905-296-2775