Farm Debt Mediation Service: Information for creditors

Information for creditors

If you and your client have reached a stalemate in your repayment negotiations, the FDMS provides a mediation process that encourages a mutually agreeable solution. As well, the FDMS develops a recovery plan outlining the steps and the responsibilities of both you and your client.

If you are a secured creditor, Section 21 of the Farm Debt Mediation Act requires you to serve a farmer with a Notice of Intent by Secured Creditor before taking legal action to recover debts. The notice must advise the farmer of the right to make an application for mediation.

You must wait 15 business days after the Notice of Intent by Secured Creditor is deemed to be effected before starting or continuing collection action. The farmer may choose to apply to the FDMS during this period, or at any time afterwards.

If a farmer applies to FDMS and a stay of proceedings is issued, creditors may not recover debts during this period. The administrator will notify all creditors of the farmer's application for mediation, appointment of a guardian and you will be invited to participate in the mediation process.

Participation of creditors in the mediation process is voluntary.

Creditors have the right to appeal the decision of the administrator on the eligibility of a farmer to make an application or the extension/termination of the stay of proceedings.

The FDMS process is confidential. As such, creditors are not permitted to communicate to others that the farmer has made an application to the FDMS. Refer to section 21(1) and section 24(2) of the FDMA for more information.