Dealing with Collection Agencies: Harassment and The Collection Agencies Act

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.

Bill Collectors and the Collection Agencies Act - How to Stop Collection Calls

If you default on payments to creditors the first people you are likely to hear from are bill collectors. Bill collectors are collection agents who work for collection agencies. Having a debt in collections can be stressful and may leave you wanting to figure out how to stop the collection calls from bill collectors.

In Ontario, collection services agencies and bill collectors are regulated by the Ministry of Consumer and Business Services are have to follow laws outlined in the Collection Agencies Act. You can view the Collection Agencies Act on the E-Laws website.

The Collection Agencies act was put in place to establish guidelines to put a stop to improper collection action on the part of Collection Agencies. In the past collection agencies would cross the line, harassing people who owed their client’s money, beyond ordinary collection calls to the debtor. This led the government to take action and establish limits for bill collectors.

The first step a collection agency must take when a debt is assigned to them for collection is to send you a written notice through the mail (email doesn’t count). This notice must include:

1.       The name of the creditor (the person or business that says you owe them money)

2.       The amount the creditor says you owe

3.       The name of the collection agency and its authority to demand payment on behalf of the creditor.

There are limits to how, when and how often bill collectors are allowed to contact you. Bill collectors are not allowed to contact you by telephone more than three times in a seven day period without your express permission. This includes speaking with you or leaving you a voicemail.

The Collection Agencies Act also outlines that a collection agency or its bill collectors cannot:

1.       Call you on Sunday, except between the hours of 1 p.m. and 5 p.m.

2.       Call you on any other day of the week between the hours of 9 p.m. and 7 a.m.

3.       Call you on a statutory holiday

4.       Use threatening, profane, intimidating or coercive language, or

5.       Use undue, excessive or unreasonable pressure.

A bill collector representing a collection agency can contact your employer once to obtain your employment information. Otherwise, they cannot contact your employer unless:

1.       Your employer has guaranteed the debt

2.       The call is in connection with a court order or notice of garnishment that has been issued by the creditor they are representing

3.       You have provided written authorization to contact your employer

Under the Collection Agencies Act a bill collector representing a collection agency cannot contact your spouse, a member of your family or household, or a relative, neighbour or acquaintance or any other third party, except to obtain your address and telephone number, unless the person contacted cosigned or guaranteed the debt or you have provided permission for the person to be contacted.

Finally, under the Collection Agencies Act a bill collector representing a collection agency cannot:

1.       Give false or misleading information to any person

2.       Recommend to a creditor that a legal action be commenced against you without first sending you notice.

If you want to stop collection calls there are two ways to do it.

Write to the collection agency and advise them that you only want to receive future communications from them in writing.

If you cannot pay the debt owed to the creditor that the collection agency is representing you can also participate in a Federal Government Program which will not only provide immediate debt relief but will also stop collection calls.

If a bill collector representing collection agency is harassing you or is exhibiting behaviour in contravention of the Collection Agencies Act you can make a complaint against through the Ministry of Consumer and Business Services.

For more information about bill collectors, the Collection Agencies Act and how to stop collection calls please visit www.debtcare.ca or contact Michael Goldenberg at DebtCare Canada by calling 416-907-2582.