In Canada, if you have a debt that goes into default, your creditor can assign your debt to a collection agency to be collected. The collection agency will then attempt to collect the debt from you. They will do this by calling you, sending you letters, and some creditors will even grant collection agencies the authority to sue you.
Dealing with collection agencies is no fun! When a collection agency is after you they can be ruthless and even harass you. Some people find themselves feeling powerless when dealing with collection agencies.
Dealing
with collection agencies used to be even worse than it is now, but as a result
of public outcry, the government decided to begin regulating them. Collection
agencies are regulated provincially and all provinces have legislation that
regulates the activities and conduct of collection agencies and their
collections. In Ontario, for example, this legislation is referred to as the
Collection Agencies Act and is administered by the Ministry of Consumer
Services.
Although
all provinces regulate collection agencies, with
regulations varying from province to province, here are some things that,
across the board, collection agencies can’t do.
· Ask you
for payment without first having notified you in writing that they have been
retained by your creditor to collect the debt.
· Make phone
calls to you with a frequency that would be considered harassment.
· Make phone
calls to you outside of the days and hours the legislation in your province
mandates.
· Ask you to
pay a debt without having provided you with the name of the creditor and the
total amount owed.
· Provide
personal information to third parties, such as other people in the household,
or leave it on your voicemail.
· Contact
your employer (unless there is a court order), neighbours or friends to obtain
an address or telephone number for you.
Sometimes
life throws us a curve ball and no one wants to end up with a debt in
collections. Having a debt in collections is an indication of an underlying
financial problem. While you may be able to count on things like the Collection
Agencies Act to control the behaviour of your creditor’s collection agencies,
you won’t be able to stop dealing with collection agencies until you
have a plan to deal with your debt.
So many
people get stressed out when dealing with collection agencies that, instead of
facing the debt head on, they alter their lifestyle. They stop opening mail or
answering the phone. Don’t do this!
There are
financial solutions to deal with debt that is in collections and companies that
specialize in these types of problems. Some financial solutions can even reduce
the size of your debt or freeze the interest on your debt, and all financial
solutions will stop collection action!
Just
imagine your life without the phone ringing off the hook every moment. Imagine
being able to rebuild your credit. Imagine having control over your debt. All
is possible – it’s up to you to take the first step.
For more
information about dealing with collection agencies or if you need help with a
financial problem please contact DebtCare Canada at 1-888-890-0888 or
visit www.debtcare.ca.
