When you fall behind on your monthly payments, creditors will usually pursue you to collect the outstanding debt. In most cases, the creditor will refer your outstanding debt to a collection agency that works on behalf of them. Once your debt is in their hands, a collection agency is legally entitled to:
- Call you at home between the hours of 7am and 10pm.
- Call your spouse, partner, relative, neighbour or friend to obtain your contact information, such as your address, and your personal or business telephone numbers.
- Call you at your place of employment, unless you make alternate arrangements with them to discuss your debt.
- Contact your employer once to get the terms of your employment and address of your employer.
It’s also important to know the legal boundaries of what is not permitted so you can record these instances for your records. A collection agency is not entitled to:
- 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 intimidating.
- 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, including minors.
- 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 alleged amount owed through the court.
- Call you after you advised the collection agency that you are not the borrower, and provide evidence to confirm this.
- Altering or cancelling any repayment arrangement made with the collection agency, if you are complying with the terms of the arrangement. We strongly recommend the terms of any repayment arrangement be documented in writing.
- Make more than three unsolicited contacts with you during any seven consecutive days.
Have collection agencies calling you?
If you are experiencing collection action from a creditor or a collection agency, you have the right to protection. Give us a call to review your legal rights and discuss whether a consumer proposal or personal bankruptcy restructuring plan is right for you.
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