If you are experiencing debt trouble, live in accordance with Ontario legislation, and wonder how your creditors will handle your outstanding bills, you should be aware of what creditors can and cannot do to collect.
The creditor will endeavor to obtain payment on an outstanding bill.
If you have fallen behind in your payment, a creditor will usually send you a notice of your late payment by mail. Subsequently, you may receive an “Urgent Reminder” about your outstanding bill payment by mail or phone. If the creditor does not receive a response, their collection department will start calling you by phone.
If the creditor cannot obtain payment, a collection agency steps in.
If no satisfactory payment arrangements are made, the creditor will retain a collection agency to collect its debt. Collection agency practices are strictly regulated by the Ontario government. The Collection Agency Act’s regulations forbid collection agencies from:
- Contacting a debtor until six days have passed from sending the debtor written notice of the following:
- the name of the creditor
- the balance owing
- the name of the agency and its authority to demand payment
- Contacting a debtor on Sunday, except between the hours of 1 p.m. and 5 p.m., and on a holiday
- Contacting a debtor, other than by ordinary mail, more than three times in a seven-day period without consent, once the agency has actually spoken with the debtor
- Using threatening, profane, intimidating or coercive language, or using undue, excessive or unreasonable pressure
- Continuing to contact a debtor if he or she has told them that he or she is not the person they are looking for unless they take reasonable precautions to ensure he or she is that person
- Giving false or misleading information to any person
- Contacting a debtor’s employer except on one occasion to obtain employment information, unless the employer has guaranteed the debt, the call is in respect of a court order or wage assignment or the debtor has provided written authorization to contact the debtor’s employer
- Contacting a debtor’s spouse, a member of the debtor’s family or household, or a relative, neighbour or acquaintance except to obtain the debtor’s address and telephone number unless the person contacted has guaranteed the debt or the debtor has given permission for the person to be contacted.
The Act also enforces limiting contact with debtors who have referred the matter to their legal counsel or who suggest the matter be taken to court.
If you experience any problems with a collection agency that is not acting in accordance with the Collection Agency Act, you should file a formal complaint with Ontario’s Consumer Services Bureau.
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