Alberta debt and money questions

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 (OPD) program on behalf of the government of Alberta. Through that, we provide:

• Unbiased advice and information
• A guaranteed 5% interest rate on your consolidated debt
• Legal protection from creditors
• The elimination of collection calls
• Coverage of all unsecured debts, including Income Tax and Student Loans
• A choice of in-person, telephone or virtual credit for required 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 the levy deducted in accordance with the Bankruptcy and Insolvency Act. 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 home 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 can be consolidated into one program.

Hence, debts from companies such as Bell and Virgin are mandated to be included in the program.

The Orderly Payment of Debts (OPD) program helps you pay your creditors 100% of what you owe, and you get to keep your assets. It remains on your credit report for two years after completing the program. Bankruptcy stays on your report for six years after discharge. Learn more about your debt consolidation options.

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 Orderly Payment of Debts (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 after two 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 Orderly Payment of Debts (OPD) program will show on your credit rating for two 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 three years. Requests for copy of your own credit report will not be seen by future creditors.
• Debts that go into collections will stay on your credit report for six 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 give us a call or send us an email. Our Client Service team 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 Orderly Payment of Debts (OPD) program, but are eligible for free Money Mentors credit counselling and financial assessments, by appointment. Also, once discharged from bankruptcy, people can go on the OPD program if the need arises.

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
• Decline in mental health

If you have questions about bankruptcy, debt consolidation, your credit report or your personal finances in general, please call Money Mentors for a FREE credit counselling and financial assessment at 1-888-294-0076.