Step 1: Get the Facts About Collection Agencies
If you are falling behind with payments to creditors you will begin to receive collection calls. At first these calls will be coming from the original creditor. If an amount owing falls far enough into arrears the original creditor will write the account off then decide whether to send the account to a law firm to file a lawsuit against you, or to send the account to a third-party collection agency.
What is a Collection Agent Allowed To Do?
- A collection agent is allowed to contact you regarding the debts that you owe, and is allowed to use reasonable means to get you to pay the debt.
- A collection agent is not required to tell you what your rights are. It is up to you to find that out for yourself.
What is a Collection Agent NOT Allowed To Do?
- A collection agent can't make charges or threats that have nothing to do with the collection of the debt.
- They can't make abusive calls in which they lose their temper or use profanity or other verbal abuse.
- They can't talk to your employer without your permission, other than a single call to confirm your employment.
- They can't make frequent calls that constitute harassment.
- They can't call at times that are prohibited for calling under the provincial Collections Act. (These times vary from province to province.)
- They can't give you a document that is made to look like an official court document when it is not.
Hear our clients talk about how Credit Canada helped them stop collection calls.
Step 2: Learn About Your Rights
It is important to learn about your rights – including your right to make a complaint – when dealing with collection agencies. For Ontario residents, contact the Consumer Protection Branch, part of the Ontario Ministry of Consumer Services. They can be reached as follows:
- Phone: Toll-free at 1-800-889-9768; Toronto area at 416-326-8800
- Website: http://www.sse.gov.on.ca
Step 3: Take Action to Deal With Your Debts
Ultimately, the only way to stop collection calls is to deal with the debt.
If Possible, Pay The Money You Owe
If paying at once is not possible, determine whether it is possible to offer an alternative method of payment, such as a series of monthly payments. Make this offer to the collection agency in writing, and provide a good-faith payment.
Never Pay Cash
Always have some record (such as cancelled cheques) of any payments you have made to the collection agency.
Put It in Writing
Any offers – whether made by you or by the collection agent – should be put in writing before being acted on. Remember this: If it's not on paper, how can you prove that an agreement exists?
Keep a notebook by your phone, and when a collection agent calls, write down the following:
- The agency's name
- The agent's name, phone number, and extension
- The time and date of the call
- The debt that they are calling about
- Any other information that is discussed in the course of your call, such as settlement offers and plans for payment