What You Can Expect from a Debt Collection Agency
If for any reason you fall behind on your monthly payments to creditors, the creditors will pursue you to recover the outstanding debt. Often the creditor will refer your outstanding debt to a collection agency that works on behalf of the creditor to collect the outstanding debt.
In the Province of Alberta, collection agencies must be licenced under the Fair Trading Act and the Collection and Debt Repayment Practices Regulation that outlines the rules by which collection agencies and its employees are governed and the manner in which they are to conduct themselves.
The following is a brief summary of what a collection agency is entitled to do:
- Call you at home between the hours of 7 a.m. and 10 p.m.
- Call your spouse, partner, relative, neighbour or friend to obtain your contact information, such as your address, and your home, cellular or business telephone numbers.
- Call you at your place of employment unless you request they not do so; however, you must make alternate arrangements with them to discuss your debt, otherwise they may continue to contact you at work.
- Contact your employer one time only to obtain the terms of your employment and the address of your employer.
The following is a brief summary of what a collection agency is NOT entitled to do:
- Call you or your spouse, partner, relative, neighbour, friend or employer repeatedly to the point that the number of calls is considered harassment.
- Use language that is offensive, threatening, intimidating, profane or coercive.
- Give any false or misleading information.
- Threaten to pursue legal action where the collection agency has not been provided the required consent to do so from the creditor.
- Discuss your debt or the existence of your debt with any person other than you.
- Discuss your debt with a minor child.
- Call you after you inform the collection agency in writing that you dispute the debt and you want the creditor to pursue recovery of the amount alleged to be owed through the court.
- Call you after you advised the collection agency that you are not the debtor and provide evidence to confirm that you are not the debtor.
- If you enter into a repayment arrangement with the collection agency, the collection agency is prohibited from altering or cancelling the repayment arrangement if you are complying with the terms of the arrangement. We strongly recommend that the terms of any repayment arrangement be documented in writing.
- Make more than three unsolicited contacts with you during any seven consecutive days.
If you are experiencing collection action from a creditor or a collection agency you have the right to protection. Contact a Faber Trustee today to review your legal rights and discuss whether a consumer proposal or personal bankruptcy restructuring plan is appropriate for you. There is no cost for you to talk to us and there is no cost for you or to meet with us, so don't delay, call Faber today.