In the current economic context, many families are struggling to pay their monthly installments. So much so that some people have to voluntarily give up certain possessions. In the Rimouski region, bailiffs say they are overwhelmed by the large number of “voluntary surrender” files.
“We are seeing an increase of about 30% in the car trade. We are getting rid of cars, sometimes luxury cars, large pickups, and there are also second and third chances on credit as people paid a lot of money to get a 2018 Toyota Corolla and now they no longer have the means,” he explained. Pierre Blier, bailiff at Blier et Boulanger in Rimouski.
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Consumers who decide to hand over the keys to their cars do so in order to pay off their debts to their creditors. These cars are collected by bailiffs who then send them to the auction or to the dealership.
According to David Tessier, also a bailiff in the Rimouski region, the increase in this type of cases has been rapid since 2021. Three years ago, it was the pandemic that disrupted the economy, and in 2024, it is rather the rise in interest rates that is pushing consumers to the wall.
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“Now, we are witnessing another “explosion,” but for a different reason: rising interest rates. If I don't have it [personnel] Internally to manage the reception and follow-up of these files, I did this nine hours a day. He imagined it at this point.
Louise Gagnon, a licensed insolvency trustee, confirms that an increase of approximately 30% in voluntary transfers can be observed throughout the province.
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“Housing loans or mortgages are becoming more expensive, but we don't have a choice in housing, and groceries are also becoming more expensive, but we don't have a choice in eating, so we try to find a place to cut down on our expenses and more often than not, we cut back on the car,” she explained. The woman who also serves as vice president at debt solutions firm BDO.
“Impatient” creditors.
Creditors, who are often financial institutions, were more lenient during the pandemic, but after losing patience, they are now demanding what they are owed.
“When we go to an address, people often want to pay, but the creditor tells us that no agreement is possible,” confirmed David Tessier.
“Often, there has been no payment for 6, 7 or 8 months, and these balloons become very large. “We make them understand that it is in their best interest to put the property in question voluntarily, and in most cases, this leads to the erasure of the debt,” noted Pierre. Blair.
Since the rubber band has been stretched to the limit, financial institutions often demand quick results from bailiffs.
“They are in a hurry and we see that in the follow-ups they ask us as well. When we receive the file, we are asked to respect the deadlines,” stressed Mr. Tessier.
This proliferation of voluntary surrenders will never end. Even if a decline in interest rates is expected, the effects of this reduction will take time before they appear.
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