Collection Agency Rules

stevewelker 13.11.2015
bankruptcy bill collectors collection agencies collection agency Consumer Proposal rules

Nearly everyone struggling with debt suffers from daily calls from bill collectors.  While our services are a great way to stop these calls once and for all, it’s important to understand some of the rules that collection agencies must follow regardless of whether or not you file a consumer proposal or assignment in bankruptcy.

Rule #1

Before a collection agency can contact you they need to send you a written notice by regular mail (email doesn’t count).
The notice must include:

  • The name of the person or business you owe money (known as the creditor)
  • The amount of money that the creditor says you owe
  • The name of the collection agency and a statement that the creditor has asked them to collect the debt

The agency must wait 6 days before they can contact you after sending the notice

Rule #2

A collection agency can’t contact you more than 3 times in a 7 day period without your consent.
“Contact” is defined as a collection agent speaking with you, emailing you or leaving a voicemail for you.
If the agents doesn’t leave a message, it doesn’t count as a contact. Also, a letter doesn’t count as a contact as either.

Rule #3

A collection agency can’t:

  • Contact you on a holiday
  • Contact you on a Sunday, except between 1pm and 5pm
  • Contact you on any other day of the week between 9pm and 7am
  • Charge you any fees
  • Use threatening, profane, intimidating or coercive language
  • Use undue, excessive or unreasonable pressure or harass you
Rule #4

A collection agency can only contact your employer once to get your employment information.
They can’t contact your employer unless:

  • Your employer has guaranteed the debt
  • It’s about a court order or an automatic deduction from your salary (also called an assignment of wages or garnishment)
  • You have given them written permission to contact your employer
Rule #5

A collection agency can’t contact your spouse, family member, relative, neighbour, or friend except to get your address and phone number unless:

  • The person has guaranteed the debt, or
  • You permit the collection agency to contact them so that they may act on your behalf.

Keep in mind that a collection agency can’t:

  • Give false or misleading information to any person
  • Take legal action against you without sending you a notice first
Conclusion

When dealing with a collection agency it’s important to know the rules.  If a collection agency doesn’t play by the rules, you are able to file a complaint with the Ministry of Government and Consumer Services.  For tips on doing so, follow this link.
If collection agencies are stressing you out, then give us a call.  We stop all calls within a matter of days, and can solve your debt problem once and for all.  We can diagnose most situations over the phone, or in person within a matter of minutes.