delete Orderly Payment of Debts Regulations
Federal regulation governing the orderly payment of debts (OPD) program, a court-supervised debt consolidation system that allows debtors to consolidate debts and pay creditors pro rata over time under Bankruptcy and Insolvency Act authority
The 15% administrative fee extracted from payments adds unnecessary costs, court supervision creates delays and bureaucratic overhead, and the system crowds out more efficient private debt restructuring solutions. This government intervention distorts market incentives—creditors face suppressed returns while debtors may strategically avoid full consequences—and fails to justify its existence when existing contract law and bankruptcy courts already handle genuine defaults. The regulation artificially constrains supply of debt resolution services, increases costs to consumers, and creates moral hazard without addressing any market failure that voluntary agreements cannot solve.