TORONTO, Jan. 12 /CNW/ - If your pile of bills is turning into a mountain

of debt, Consumer and Business Services Minister Jim Watson wants you to be

wary of companies that promise easy loans or quick credit rating fixes.

    "It is illegal in Ontario for loan brokers and credit repairers to take

money before they provide a loan or improve a credit rating," said Watson.

"More than 1,500 charges have been laid against fly-by-night loan brokers and

credit repairers who take consumers' money but fail to deliver on their

promise, so we want people to learn to protect themselves before cash changes

hands."

    Consumers should exercise caution when dealing with companies that claim

they can provide "easy" loans or "fix" a credit rating. The ministry advises

consumers not to pay in advance. A consumer who has already paid "advance

fees" can demand a refund at once. If the company refuses, consumers are

advised to call the ministry's Marketplace Standards and Services Branch.

    Credit repairers are specifically prohibited from stating they will

improve consumers' credit files unless:

    -   The credit repairer has examined the consumer's credit file

    -   Information on the file has been found to be inaccurate or incomplete

    -   The credit record would be "materially" improved - not just

        correcting the spelling of a name or a number - by correcting real

        deficiencies.

    Consumers who have financial problems should seek help from a member

agency of the Ontario Association of Credit Counselling Services (OACCS).

Non-profit credit counselling services are operated by 26 member organizations

at more than 40 locations across Ontario to help people solve their financial

problems. To find the nearest office, call toll free 1-888-746-3328.

    Consumers who want information or advice on how to protect themselves in

the marketplace should call the ministry at (416) 326-8800 in Toronto or toll

free at 1-800-889-9768.