Can I get out of a debt settlement or credit counselling agreement?

Tell them you want to cancel your agreement

If you received a copy of your agreement within the last 10 days, you have the right to cancel it. You do not have to give a reason. This is called a 10-day . If you cancel the contract, they must give you back any money you gave them.

You can still cancel it within one year of signing it if:

  • the or counsellor didn't give you a copy of the agreement, or
  • the agreement does not include the information required by law.

Cancellation letter

You must send a letter to the debt settlement company or credit counsellor if you want to cancel the agreement within one year. In your letter, include:

  • your name and address
  • the date
  • the name of the company
  • their address
  • the date of your contract
  • other important details
  • the fact that you want to cancel, and what else you want to them to do

Clearly tell the company how you want to resolve the problem. For example, ask for your money back. Be sure to include:

  • your contact information
  • the date by which you want to hear from them (3 weeks is reasonable)
  • copies (keep the originals) of receipts, invoices, contracts, or other important documents

Make sure you sign and date your letter. Keep a copy of it, and write down the date you sent it, and whether you mailed, emailed, or faxed it.

If you do not write a letter, it can be difficult to prove that you cancelled the contract. Make sure you have a copy of the letter, in case the company says you did not cancel the contract.

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