Debt collectors.
Their job is to make you so miserable that you will pay off the amount they are attempting to collect. Last week we discussed debt issues that become so serious they’re referred to collection agencies. For many Canadians living paycheque to paycheque, any unexpected expense that comes up can disturb a very delicate balance and before you know it, you’ve missed a payment or defaulted on a loan. This triggers an unfortunate series of events and now in addition to the serious debt, you are being pursued by debt collectors from the collection agency. Some of them can make your life very unpleasant but you do have rights.
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What are your rights? Collection agencies are regulated and each province has its own rules and regulations. In Ontario, the Ministry of Consumer Services regulates collection agencies through the administration of the “Collection Agencies Act”. If a collection agency behaves inappropriately, file a complaint with the Ministry. You have rights:
- You must be notified in writing through the mail (not email) that your file has been given to a collection agency before they can start calling
- The notice must include the name of the creditor (the person or business that says you owe them money), the amount the creditor says you owe, and the name of the collection agency and its authority to demand payment on behalf of the creditor
- After sending the notice, the agency must wait 6 days before they can contact you in person or by phone.
The collection agency cannot:
- Contact you on Sunday, except between the hours of 1 PM and 5 PM
- Contact you on any other day of the week between the hours of 9 PM and 7 AM
- Contact you on a statutory holiday
- Use threatening, profane, intimidating or coercive language
- Use undue, excessive or unreasonable pressure
The collection agency cannot continue to contact you if:
- You send a registered letter to the agency saying that you dispute the debt and suggest the matter be taken to court.
- You (or your lawyer) send a registered letter to the agency providing your lawyer’s contact information and notifying the collection agency to communicate only with your lawyer.
- You have told them that you are not the person they are looking for unless they take reasonable precautions to ensure you are that person.
What should you do? The best thing to do about a collection agency and its debt collectors calling you is to deal with not only the people from the collection agency are trying to collect, but all of your debts. The best time to deal with them ideally is once you sense there is a problem and before they are referred to a collection agency.
If the debt collectors are calling you, it’s not too late to call a trustee. Ira Smith Trustee & Receiver Inc. is full-service insolvency and financial restructuring practice serving companies and individuals throughout the Greater Toronto Area (GTA) facing financial crisis or bankruptcy that need a plan for Starting Over, Starting Now. Contact us today for a solid plan for dealing with your debts so that you can get back on track to living a debt free life.
