What is a Collection Call

A collection call happens when a collection agent, working at a collection agency calls a debtor who is behind on payments as according to the terms and conditions of the credit agreement.

Who Makes Collection Calls?
Only Provincially licensed collection agents who are working at Provincially licensed collection agencies are allowed to make collection calls.

These third party collection agencies should have written agreements with creditors to collect debts that are past due or where payments have stopped

Who Receives Collection Calls?
An individual who is behind in making payments, or stopped payments altogether will receive notifications by telephone, or mail from a licensed firm.

In the agreement the debtor signed, they've allowed the creditor to use a third party bill collector should they not make payments up to date and as agreed to.

Where is a Collection Call Made to?
A collection call can be made to the individual's home, or to their place of employment. Agents will call all sorts of places trying to locate the debtor, if the debtor's contact records are out of date.

Usually a collection call is made to the debtors home, and there are rules and regulations that need to be followed by the debt manager. Each province has regulations that limit where and when a call can be made.

When is a Collection Call Made?
Contacting a debtor should usually be done at reasonable hours. Usually the hours are between 8 am and 9 pm, the same times that telephone solicitors are allowed to call.

Each province has different regulations on when collection calls are allowed. Most times collection personnel are not allowed to call on weekends or holidays and at certain hours.

Why are Collection Calls Made?
There is an agreement set in place between the debtor and the creditor. In short, the debtor borrows money from the creditor and agrees to make interest and principal payments at agreed times.

If these payments are not made, that usually triggers collection activities.

As to why the borrower isn't making payments could range from pure neglect to the fact that they just lost their job, or acquired an illness and their cash income has been cut off.

A creditor's income is the interest it charges to the borrower. It must be able to control the payments coming in from it's customers.

Understanding that it's customers payments are not always going to be smooth and steady, it has to use a system to encourage prompt payments. This ensures that the creditors cash flow is in tact.

How are Collection Calls Made?
When the payments are not made by the debt, the creditor's computer system flags the late payments automatically and then these database records are sent (hopefully securely) to the collection agencies computer system.

These days, collection agencies are usually automated with powerful computer systems and data management systems.

Many times collectors are based in call centers with several employers. Using an automated dialling system, the collection agent makes several calls over the course of a day. The more efficient the telephone and data system, the more calls can be made by the debt management company.

Collection calls are regulated by each province. If you're having more questions or problems please contact your local consumer protection for advice on how to deal with individuals and companies that work for creditors to herd in their payments.