Your Path to Debt Freedom
Credit Card Collection
Collection Agencies are paid based on how much they can collect from you. The only way to stop harassing collection calls is to either (a) pay off all your debts; or (b) file a consumer proposal or an assignment in bankruptcy.However, collection agencies have certain rules and regulations that they must follow and you have certain rights as a debtor.
Collection Agency Rules – What Are Your Rights?
- A collection agency must be legally registered in Ontario.
- Collection agencies cannot attempt to collect any interest or additional monies in excess of the original debt.
- The collection agency must notify you in writing of the debt outstanding.
- They cannot contact you in a way that incurs a cost for you (ie a cell phone call).
- Collectors are not, generally, allowed to contact a debtor’s friends, employer, relatives or neighbors for information other than the debtor’s telephone number or address.
- Collectors cannot harass you or anyone you know regarding the debt. A complaint can be brought against an agency for harassment (ie excessive phone calls, threats, etc).
Links on How To Deal with Collection Agencies
- The Ministry of Consumer and Corporate Relations brochure
“A Consumer’s Guide to Collection Agencies“
- The Collection Agencies Act of Ontario.
Handling Collection Agencies on Your Own
Collection Agencies must be handled with diligence and care. Ignoring them could result in grave consequences such as wage garnishments. It is best to deal with them promptly. It is important that you have received written notification of the debt, and if not, confirm the mailing address where the notification was sent and ask for another one if the address was incorrect. You are legally entitled to written notification/proof of the debt. Only agree to a repayment schedule that is plausible and if you need to default on this schedule, notify them immediately. Never send cash as this can be lost/misplaced and offers no proof of repayment.