Frequently Asked Questions
When it comes to debt and money management, people often have a lot of questions. Here are a some of the most common questions we hear:
Money Mentors is the only Alberta-based not-for-profit credit counselling agency. We offer FREE credit counselling, financial assessment services, budgeting workshops, and money coaching. We are also the only exclusive provider of the Orderly Payment of Debts program on behalf of the government of Alberta.
We provide:
- Unbiased advice and information
- A fixed 5% interest rate
- Legal protection from creditors
- Collection calls are eliminated
- All unsecured debts are covered, including Income Tax and Student Loans
- A government approved program
- A choice of in-person, telephone or Skype credit counselling appointments
The Alberta Government privatized the Orderly Payment of Debts (OPD) Program in 1997 by funding Money Mentors to administer the program. The majority of our funding comes from a mandatory fee charged to the creditors. Clients are required to take three education sessions and take part in a final appointment with their credit counsellor before successfully completing the OPD Program.
The Orderly Payment of Debts (OPD) program allows Alberta residents to consolidate all unsecured debts into one affordable payment with a fixed interest rate of 5% regardless of credit rating. The OPD program is available to all residents of Alberta with a current Alberta address at the time of application.
- Credit cards
- Personal loans
- Overdrafts
- Lines of credit
- Unsecured loans
- Utility and cell phone bills for discontinued services
- Student loans
- Payday loans
- Income tax and over-payment of social services
- Term loans
- Arrears for existing services (including utilities and rent)
- Corporate taxes and/or GST for a current business
- Court-ordered payments such as spousal or child support
- Secured loans such as car loans/leases or mortgages
- Debts incurred as a result of fraud
No, because the Orderly Payment of Debts (OPD) program is covered under federal legislation, ALL unsecured debts are consolidated into one program.
Hence, debts from companies such as Bell and Virgin are mandated to be included in the program.
The OPD program helps you pay your creditors 100%, you get to keep your assets and it remains on your credit report for 2 years after completing the program.
Once protected by the Orderly Payment of Debts (OPD) program, all collection calls should stop. In the event of continued calls, all creditors or collection agencies can be referred directly to Money Mentors. Additionally, once protected by the OPD program, a creditor cannot take legal action in pursuit of outstanding debts.
Debts protected under the OPD program are typically reflected on a client's credit report as R7, because the account is being paid under the protection of a debt consolidation order. The R7 is typically removed 2 years following the successful completion of the OPD program. During the repayment period, the creditor may report a debt as R9 at the creditors' discretion even though the client is participating in the OPD program.
Yes, because you are not paying your account as originally agreed. The OPD program will report on your credit for 2 years after completion. However, with a good history of payments in the program, you can get a reference letter to take to new lenders. We also offer free financial seminars on how to rebuild your credit.
Once protected by the Orderly Payment of Debts (OPD) program, a client will make regular monthly payments directly to Money Mentors, which is then disbursed to the client's creditors on a pro-rated basis. This payment disbursement continues until all creditors are paid in full.
The length of time information stays on your credit report depends on the type of entry it is. Here’s a guideline:
- Inquiries from creditors stay on your credit report for at least 3 years. Getting a copy of your own credit report will not show up to future creditors.
- Debts that go into collections will stay on your credit report for 6 years from the day of the last payment.
It’s a really good idea to keep up to date on your credit report. Contact Equifax at 1-800-465-7166 or TransUnion at 1-800-663-9980.
We offer FREE credit counselling and financial assessments to meet your financial needs; to book your free consultation, please call us at 1-888-294-0076 or email CSRmail@moneymentors.ca. Our Client Services will then connect you with a counsellor near you.
Applicants who are currently protected by Canada's Bankruptcy Act are not additionally eligible for the OPD program, but are eligible for free Money Mentors credit counselling and financial assessment by appointment. Also, if a person has been discharged from bankruptcy, he/she could go on OPD if the need arose.
If you suffer from any of the following debt symptoms, call us immediately. We can help!
- Trouble making ends meet
- Irritating collection calls
- Increased stress
- Difficulty sleeping
- Strained relationships
