New consumer protection legislation takes effect in New Brunswick today that will regulate credit reporting agencies and restrict the activities of credit repair firms.
The Financial and Consumer Services Commission (FCNB) says it will begin administering and enforcing the legislation on Oct. 1.
The Credit Reporting Services Act aims to enhance consumer protection by requiring credit reporting agencies and debt settlement firms to be licensed, and setting standards in these industries.
“These new rules improve consumer protection in New Brunswick by providing clarity for consumers around what to expect from a credit reporting agency,” says Alaina Nicholson, the FCNB director of consumer affairs, in a statement. “The new act and rules also set out rules and restrictions on the activities of credit repair agencies in areas such as contract cancellation and charging advance fees to the consumer for their services.”
“We are pleased with these additional rules and amendments as they increase protection for New Brunswick consumers,” adds Nicholson. “By clearly outlining consumers’ rights and responsibilities, and defining what these agencies are and are not allowed to do, New Brunswickers will be in a better position to make positive financial decisions.”