If you have been served with a written notice from a collection agency stating you owe money for an unpaid debt to a creditor, you should know how to properly deal with it.
There are 7 facts you should know; 3 of which are covered in this blog. The remaining 4 facts will be covered in part 2 of “How to Deal with Collection Agencies” – will be posted next Monday.
Fact 1: Make sure the written notice is sent through the mail (email does not count)
This notice must include:
- the name of the creditor (the person or business that says you owe them money)
- the amount the creditor says you owe
- The name of the collection agency and its authority to demand payment on behalf of the creditor.
After sending the notice, the agency must wait six days before it can contact you in person or by phone.
Fact 2: How often can the collection agency contact you?
The agency has to observe a number of restrictions about how often their agents can contact you and how they communicate with you. For example, after their first conversation with you, the agents cannot contact you more than three times in a seven-day period without your consent, except by regular mail. “Contact” means the agents must actually speak with you, email you or leave you a voice mail. If you don’t answer the phone and the agents don’t leave a message, it doesn’t count as a contact.
In addition, according to the Ministry of Consumer Services, the agency cannot:
- contact you on Sunday, except between the hours of 1 p.m. and 5 p.m.;
- contact you on any other day of the week between the hours of 9 p.m. and 7 a.m.;
- contact you on a statutory holiday;
- use threatening, profane, intimidating or coercive language; or
- Use undue, excessive or unreasonable pressure.
Fact 3: Can collection agencies ask other people about you?
In general, a collection agency can contact your employer once to obtain your employment information. Otherwise, they cannot contact your employer unless:
- your employer has guaranteed the debt
- the call is in respect of a court order or wage assignment given to a credit union; or
- You have provided written authorization to contact your employer.
A collection agency cannot contact your spouse, a member of your family or household, or a relative, neighbour or acquaintance except to obtain your address and telephone number, unless:
- the person contacted has guaranteed the debt; or
- You have given permission for the person to be contacted.
In addition, a collection agency cannot:
- give false or misleading information to any person; or
- Recommend to a creditor that a legal action be commenced against you without first sending you notice.
Stay tuned to the remaining 4 facts of “How to Deal with Collection Agencies – Part 2” It will be posted to our blog page Monday, June 25..
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