Collection Agencies – Information and Advice
If you owe money to a creditor and have stopped making your payments then debt collectors and collection agencies might start calling you to recover the money owed.
Tips for Dealing With Collections:
• If possible, your best course of action would be paying the amount you owe;
• Contact the collection agency and explain your situation and make a fair offer to repay the debt if you are unable to pay the complete amount you owe in full;
• Make sure to get any agreements made with the collection agency in writing;
• Get receipts for all payments to the collection agency as proof of your payment (never send cash);
• You will receive written notification when your debt has been sold to a collection agency.
What if I’ve Been Treated Unfairly?
There are rules and regulations as to what a collection agency can do and you have certain rights in regarding as to how debt can be collected from you.
For example, a debt collector representative will not be allowed to contact you and use abusive language or contact you to early in the morning.
A debt collection agency is sometimes called in to deal with uncollected debt.
Businesses will hire a collection agency if they have trouble collecting from a debtor.
Often credit bureaus will note such a collection activity in your credit report, which could have a severely negative impact on your credit score.
Need Help Reviewing Your Financial Situation?
Contact a Licensed Trustee for a Free Debt Relief Evaluation
There are specific rules regarding what a debt collector working at an agency can or cannot do by province.
Various Debt Collection Rules by Province:
Newfoundland and Labrador
Prince Edward Island
Les comptes en souffrances (French Only)