The Rules and Regulation that Collection Agencies in Canada Follow

Collection agencies in Canada are allowed to get in touch with the debtors regarding debts that have been forwarded to an agency. Prior to any collection schemes such as when a collection agency calls a client which they usually do, the debtor must be warned in writing that the collecting agency will handle such account. The techniques that collection agencies utilize to gather the debt are regulated by the Canadian government.

Collection Agencies must Identify Themselves

Collection agencies have to at all times be truthful when collecting a debt from consumers. When a collection agency agent calls the debtor, he is obliged to identify himself and the collection agency he is affiliated with. Providing false name or false agency contact is prohibited. Additionally, the representative must inform the debtor how much debt is owed on the account, and from whom the money is owed to. A collection agency is not allowed to pretend to be a law office, law enforcement agency or any other government official. Informing the debtor that he will be detained for not paying off the debt owed is known as an intimidation. Threats are not allowable to be done by collection agencies. Producing physical coercion to a debtor, the family members or friends is also against the law.

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Regarding with Calling Times

The period where a collection agency is allowed to call a debtor differs from one province to another. The hours and the number of times a collection agency is acceptable to call a debtor are regulated. Thus, it does not turn out to be harassment to a debtor and his family. According to Credit Counseling Services, collection agencies are just allowed to call a debtor three times in a seven-day period, along with voice messages. Calls may be done to a debtor between the hours of 7 a.m. and 9 p.m. Monday through Saturday and between the hours of 1 p.m. and 5 p.m. on Sunday. It is prohibited for a collection agency to call a debtor to collect, or mail a written message or telegram regarding the amount needed to be settled.

Privacy Rules that must be abided

The privacy of debtors in Canada is being safeguarded. Even if, a collection agency has the capability to call the references, family members, friends and neighbors to find a debtor, the agency is not allowed from revealing whichever information about the debt. The representative from the collection agency is only allowed to inquire for the debtor's present address or telephone number. If the reference or contact person is on the account or a co-signer, the collecting agency has the right to talk to the person regarding the debt. An employer should only be called to confirm the debtor's employment, job title and work address. It is unlawful for a collection agency to give away false information to references or contacts that could hurt the debtor and his family in whichever way.

See Also

Canadian-Money-Advisor FAQs

Debt Settlement Canada Signup

Canadian Debt Settlement

External Links

Prlog.org

Curadebt.com

Debtprison.net