Debt settlement service merchants must negotiate with your creditors in accordance with the terms set forth in the contract. The contract must spell out the proposals to be presented to each creditor.

The rules presented in this page apply to merchants who offer either of the following services:

• negotiating a debt settlement with your creditors;
• receiving funds to be distributed to your creditors.

Proposal accepted by a creditor

When a creditor accepts the merchant's proposal, both parties must enter into a written agreement in principal. The merchant then has 15 days to send you a copy of this agreement.

A document must be appended to the copy of the agreement. The following information, as it appears in the contract, must be included in this document:

• the proposal the merchant undertook to make to the creditors, include the terms and conditions of payment; and
• the amount of any payment to be made by the merchant to the creditors, and the frequency and dates of the payments, if applicable.

You can either accept or refuse the proposed agreement. If you accept it, the merchant will ask you for written confirmation.

Proposal refused by a creditor

If a creditor refuses the merchant's proposal, the merchant must immediately notify you of that fact, both verbally and in writing.

The creditor is deemed to have refused the proposal if the merchant has not received the creditor's acceptance of the proposal at either of the following times, whichever comes first:

• when the merchant sends you a summary document, the purpose of which is to notify you of the progress made; or
• within 45 days after entering into the contract.