In our last blog post, “How to Deal with Collection Agencies – Part 1”, the following facts were covered:
- Make sure the written notice is sent through the mail (email does not count)
- How often can the collection agency contact you?
- Can collection agencies ask other people about you?
Now, in accordance with the Ministry of Consumer Services, let’s focus on the remaining 4 facts.
Fact 4: Can a collection agency charge you extra?
No. Collection agencies cannot add any charges. They are allowed to collect only what you owe your creditor. But remember, the amount you owe could continue to grow if interest charges are piling up. This depends on the terms of your contract with your creditor.
Fact 5: Exercise your rights
If you believe a collection agency has violated any of these practices in dealing with you:
- send the agency a letter outlining why you believe they have acted inappropriately and notifying them that you expect them to comply with the law; and
- If their behaviour persists, file a complaint with the ministry.
Fact 6: Deal with the problem right away
If you are contacted by a collection agency, it’s important that you deal with them to resolve your debts as soon as possible. Otherwise, the problem won’t go away and could very well get worse. Your creditor might:
- report you to the credit bureau;
- take you to court and get a judgement against you, allowing them to seize your goods or claim part of your pay cheque; and/or
- Sell your debt to a third party. In this case, the rights available to you under the Collection Agencies Act may not apply.
It’s always best to deal with debts before you get to this point. One way to deal with your debts is to consult a debt relief professional. They can help stop collection agency calls.
Fact 7: What if they’re wrong?
The collection agency cannot continue to contact you if:
- you send a registered letter to the agency saying that you dispute the debt and suggest the matter be taken to court;
- you (or your debt relief firm, or lawyer) send a registered letter to the agency providing your lawyer’s contact information and notifying the agency to communicate only with your lawyer; or
- You have told them that you are not the person they are looking for, unless they take reasonable precautions to ensure you are that person.
These 7 facts in total will properly arm you if and when you have to deal with collection agencies.
For more information about the practices of collection agencies or how to get out of debt, contact a professional and licensed debt relief company ~ OCCA Consumer Debt Relief to resolve your debt and STOP those collection calls. We will help!.
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