Debt Collection
If you have outstanding loans or credit card debt that you are unable to repay, you could be faced with being contacted by a debt collector or debt collection agency.
It is important to know that if you are approached by such entities, they are obligated to treat you fairly and they are governed by laws that dictate what they can and cannot do when they try to collect the money you owe. Unlike days of old, Canadian laws prevent debt collectors and collection agencies from going too far and physically threatening you or harassing you in other extreme ways.
Debt collection in Canada is in the jurisdiction of the provinces and territories, and while the rules and regulations are similar, each area has it’s own agency or department to deal with such matters.
In this article we look at some of the things in relation to debt collection that are allowed and not allowed, and explore what rights you have that are typically covered by the respective governments we mentioned above.
The laws regarding Canadian debt collection, attempt to find a balance between preserving the debtors’ right not to be excessively harassed and to be treated with dignity, while still giving creditors an opportunity to try to collect the money that is legitimately owed to them. Debt collectors and debt collection agencies can be quite persistent, but they cannot call at unreasonable hours or put the debtor’s job in jeopardy by harassing him or her at their place of work.
Typically, debt collectors and collection agencies are not allowed to:
* Use profanity or other kinds of verbal abuse (shouting or threatening) when they call;
* Speak with your employer (unless it’s to confirm your employment) without your permission;
* Speak with you or your family or your employer such that it would cause humiliation or distress;
* Produce official looking court documents (designed to intimidate) when in fact they aren’t real.
* Make overly frequent harassing calls.
Debt collectors should not be calling call you more than once a day, and in fact, unless there is a good reason, a collector should not need to call you more than once a week or every second week to find out if your financial situation has changed.
When it comes to contacting you, a debt collector has the right to either contact you in person or by using the phone, mail, fax or telegram. But the time at which they contact you should not be unreasonable unless you have agreed to it with them beforehand. So, one who initially contacts you at 7am in the morning or 10pm at night should be asked to return the call again at a time that is more convenient for you. Plus, at no time should a legitimate debt collector be calling you at your place of work without your express permission.
Above we have looked at some of the things involved when it comes to debt collection. It is worth at this time learning more about Fair Debt Collection Practices, to ensure that you know exactly where you stand should you find yourself faced with a debt collector contacting you. If you do find that the collector is not operating within the confines of these Fair Debt Collection Practices, then you should immediately contact the appropriate government agency and file a complaint.
Being in debt does not give anyone the right to threaten or abuse you or jeopardize your ability to support yourself or your family.
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