Collection agencies are either hired by creditors to collect commissions on their own behalf, or collection agencies purchase debts in a discounted rate and maintain the whole amount if they are able to accumulate it. If a collection agency phones you, then this likely means you’ve got more acute financial issues than you believe.
In the event the creditor passed on the debt to a collection agency, and you continue to be not able to pay off the debt, then you may consider charge counselling or may try to negotiate different repayment conditions, or repayment of a diminished lump-sum sum together with the collection agency.
When dealing with collection agencies, Be Certain to keep a written record of every time You’re contacted and comprise:
The name and phone number of the individual calling and the Agency they work for,
the time and date of each phone,
that the particular debt they are calling about, also
the details of what is discussed, for example repayment provisions or settlement offers.
What a collection agency could do
In Ontario, the Collection and Debt Settlement Services Act (Act) governs what a collection agency can, and cannot do. Though collection agencies can be very persistent, the law places limitations on their behavior. There are procedures, a collection service must follow.
Underneath the Act, group agencies should send you a written note through the mail. This note must include:
The name of the creditor (the person or company that says that you owe money),
the amount the creditor says you owe, and
the name of the collection agency and evidence of its authority to require charge on behalf of the creditor.
After sending the notice, the agency should wait six days before it can contact you.
Just what a collection agency cannot do
Even the Act lays out quite a few restrictions on the behavior and authority of group agencies.
They cannot continue to contact you if:
You send them a registered letter saying that you dispute the debt and also indicate the issue be taken to court;
You or your attorney send them a registered letter supplying your lawyer’s contact information and advising the bureau to communicate just with your lawyer; and
You are not the individual they are searching for and you’ve told them so.
In addition, a collection agency cannot:
Contact you on Sunday, except between the hours of 1 p.m. and 5 p.m.
contact you on every day of the week between the hours of 9 7 and pm a.m.
touch you on a holiday vacation
use profane, intimidating or coercive language, or threaten you in any way, including by mail, email, text, over the telephone, or even in person
tell you false or deceptive information
tell you they have begun a court action when they have not
include any extra charges or numbers to this money you owe
contact you anymore if you have gone bankrupt and your authorized bankruptcy trustee has informed them of the fact
Creating a deal with a collection service
If you reach an agreement with a collection agency Concerning the debt owed, make sure you:
Talk to a Business law Attorney or Firm first to confirm the details
Set any offers made by either party, such as payment terms or settlement offers, in composing as proof of their negotiation provisions;
put the final agreement in writing and signed by you and also the collection agency earlier you make any obligations, along with
when you do make payments, even never invest in money. Always have evidence of the payment, such as a cheque.
The group agency ought to quit calling after an agreement is in place.
You could also be entitled to bring an action against them in Small Claims Court.
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