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Tag: collection agency harassment

  • Back to Basics: Collection Agency Harassment and Your Rights

    debt1When you have debts that you are unable to pay, your creditors will not just sit back and wait for you to find the money. Creditors have resources available to them to retrieve what is owed, and most will take advantage of them within a very short period of time. The most common is a collection agency – a company that intervenes on your creditor’s behalf to recover money owed. Unfortunately, even though these agencies are regulated, collection agency harassment is quite common.

    Here are some things you may not know:

    • As soon as your account goes to a collection agency, you must be notified in writing.
    • Once you receive this letter, if possible, pay the amount that you owe.
    • If you are unable to pay it all at once, contact the agency and explain – don’t just hope the issue will go away on its own.
    • If you reach an agreement with the agency, get it in writing.
    • Never send cash. Make sure that you obtain a receipt for your payment from the agency.

    This is often an oversimplification of the entire process, and since collection agencies are aggressive, their tactics to get you to pay are often intimidating and stress-inducing.

    That being said, you have rights. Knowing them is important.

    Each province has its own set of regulations pertaining to collection agencies. You can visit the Office of Consumer Affairs to find out more about your own province here: https://www.ic.gc.ca/eic/site/oca-bc.nsf/eng/h_ca02149.html.  These regulations are put in place to protect you – and any breach is a violation of these regulations.

    In Ontario, for example, a collection agency can’t:

    • contact you on a Sunday, except between 1 pm and 5 pm
    • contact you on any other day of the week between 9 pm and 7 am
    • contact you on a holiday
    • use threatening, profane, intimidating or coercive language
    • use undue, excessive or unreasonable pressure or harass you
    • charge you any fees

    If you feel as though a collection agency is not adhering to these rules, you have the right to defend yourself and speak out.

    If you’re drowning in debt, dealing with collection calls that, although adhering to the regulations, are causing you to lose sleep at night, and you don’t know where to turn, it might be time to seek out some help.

    Did you know DebtCare offers a credit repair program?

    We can help stop the collection calls and get your debt cleared up. Call us today to find out about your options: 1-888-890-0888.

     

  • Getting Out of Debt Blog Series #1: Consumer Proposal

    Getting Out of DebtWith summer winding down and consumer debt levels remaining at all-time highs, we thought it was a good time for a back-to-basics ‘getting out of debt blog’ to help you ease into fall with less worries on your plate. This first blog in the series will talk about the consumer proposal, giving you the ins and outs to help you better understand your options for getting out of debt. Other blogs in this series will focus on debt consolidations, debt settlement and bankruptcy.

    What is a consumer proposal? In a nutshell, a consumer proposal is a proposal that is administered by a trustee where you offer your creditor(s) a sum of money to be repaid over a term of 5 years. This sum could be less than the total debt you owe. Also, a consumer proposal will stop legal action being taken against you by unsecured creditors who are included in the proposal, stop collection agency harassment and freeze the interest accumulating on your debt.

    A consumer proposal has to be conducted by a licensed trustee in bankruptcy – you cannot negotiate one on your own. A financial consultant can consult with you on your financial options and if a consumer proposal is the solution you elect, he or she can co-ordinate a fair deal for you with a trustee.

    Unlike bankruptcy, once a consumer proposal is in place you have no ongoing obligation to the trustee whatsoever – you simply have to make your monthly payment. Consumer proposals can be repaid in full at any time. This is a major plus for folks who want to rebuild their credit quickly. A consumer proposal will be completely removed from your credit report 3 years from the date it has been paid in full. Beginning with a secured credit card or RRSP loan, those who make consumer proposals have many options available to them for rebuilding credit.

    With anything there are caveats. A consumer proposal must be accepted by your majority creditor. Because trustees represent you and your creditors it is important to understand how consumer proposals work and to have your own representation through the process. Negotiating a proposal that is accepted by your creditor(s) and that is the best deal for you is key. Having representation ensures that you have someone who has expertise in this area to ensure that you do get the best deal and that all aspects of your financial situation have been considered.

    Filing a consumer proposal is, for many people, a smart solution for getting out of debt. That being said, it needs to be approached correctly, and you will need the help of a professional to carry it out.

    For more information about consumer proposals or other ways of getting out of debt, please contact DebtCare Canada by calling 1-800-890-0888.

  • Collection Agency Harassment: How to Stop the Calls

    collection agency harassmentCanadians have become so accustomed to carrying debt, and for some being in debt has become the norm. It is true that the vast majority of Canadians do have debt and when debt accumulates to the point where you are defaulting on monthly payments, the debt you have can be the source of considerable stress. This is especially true if your creditor has sent your debt to a collection company resulting in collection agency harassment!

    Collection agency harassment comes in many forms, but the most common is phone calls demanding payment for uncollected funds. These calls can come during the day, in the evening, on the weekends – when you are at home and at work. If you have been receiving these calls, or are nervous that they may begin in the very near future, it is best not to avoid the issue. The calls are not going to stop just because you don’t answer the phone – if anything they will increase in frequency. The collection agency may also pursue other methods to make contact with you that can be the source of embarrassment.

    In provinces like Ontario collection agencies are regulated by the appropriate ministry. In Ontario that ministry is the Ministry of Consumer Services (MCS). Reading your province’s legislation that deals with the regulation of collection agencies is your first step towards stopping collection agency harassment. If an agent called you at a time he or she wasn’t supposed to or disclosed information about you or your debt to a third party such as a family member or co-worker, you may file a complaint with the government to stop the collection agency harassment.

    Formulate a plan to deal with the debt. It won’t go away by itself and as long as it sits in collections it will accumulate very high interest, can be damaging to your credit and the collection agency will continue to pursue you. Speak with a financial consultant who has experience stopping collection agency harassment for help and also to learn about programs that can help you deal with the root problem – the debt itself.

    There are several very effective forms of debt relief in Canada, most common among them are debt settlements, consumer proposals, debt consolidation, mortgage refinancing and bankruptcy. All of these approaches have different benefits. While a consumer proposal can reduce your debt and freeze interest, it can also impact your credit in the short-run. While mortgage refinancing will enable you to rebuild credit faster, you will have to pay closing costs and interest to use your home equity to consolidate your debt. Only a skilled financial consultant can help you to review your options and help you choose the one that will best help you achieve your personal financial goals.

    If you are facing collection agency harassment it might be time to get the ball rolling and seek out debt relief from a professional organization experienced in dealing with collection agencies and helping individuals get rid of their debt. Get control of your debt – don’t let your debt control you!

    For more information about debt relief to stop collection agency harassment please contact DebtCare Canada today by calling 1-800-890-0888.