Debt Collection Agencies And Your Rights
Your rights when dealing with a debt collector
You have rights when it comes to dealing with a debt collector, such as how it’s collected and what a debt collector can do on behalf of the financial institution, to which you owe money. If you have questions or concerns that your rights are not being respected, contact GEM DEBT LAW.
So what is a Debt Collection Agency?
A Debt Collection Agency and their Agents also referred to as debt collectors, recovers past due debts. It is easier for financial institutions or lending companies to hire a debt collector, rather than pursuing borrowers themselves.
What happens when your account gets sent to a Collection Agency?
A Collection Agency will have a notice sent to you with the amount of debt owing, before calling for the money. The notice will include the name of the Collection Agency, the source of your debt, and the amount that you owe.
Who a debt collector can contact?
In order to find your phone number or address, a debt collector can contact your friends, employer, family or neighbors.
When will a debt collector contact you?
According to Ontario’s Collection and Debt Settlement Services Act, a debt collector can only call you between the following times:
● On a Sunday between 1 p.m. and 5 p.m. local time;
● On a Monday to Saturday, between 7 a.m. and 9 p.m. local time;
● You won’t be contacted on holiday.
Other Provincial laws and regulations have similar restrictions, such as BC’s Debt Collection and
Repayment Regulation and Alberta’s Collection and Debt Repayment Practices Regulation.
What a debt collector can’t do?
It’s against the law for a debt collector to use threatening, intimidating, or abusive language. A debt collector should not provide misleading or false information and suggest to your friends, family, or employer that they should pay your debts. Unless any of these individuals co-signed your loan. Lastly, a debt collector should not call your cell phone, unless you provided the number to reach you.
What to do when a debt collector calls?
First, you want to check that the person calling is trustworthy and that the amount you owe is correct.
Make sure to conduct the conversation by asking the following:
● Name of person calling
● The company they work for
● On behalf of what creditor (bank, loan company, etc.) are they calling
● The amount of debt that you owe (starting date, interest, etc.)
● A call back number
Do not give out additional information.
Tell the debt collector that someone will call them back and end the call, even if they try to keep you on the line. Otherwise, you may disclose vital information to the Agent that could prompt a lawsuit or further enforcement action against you.
Next, get proper advice with a FREE CONSULTATION from GEM DEBT LAW.
When you find out a debt collector is looking for you, it is critical that you are proactive and take control before the situation becomes urgent. If you bury your head in the sand, you may end up with thousands of dollars in interest, lawsuits, and other complications.
We’re happy to help!