• What is Collection Agencies Act? 2

    Wikipedia says that a collection agency is a business that pursues payments of debts owed by individuals or businesses. Most collection agencies operate as agents of creditors and collect debts for a fee or percentage of the total amount owed. There are many types of collection agencies. First-party agencies are oftentimes subsidiaries of the original company the debt is owed to. Third-party agencies are separate companies contracted by a company to collect debts on their behalf for a fee. Debt buyers purchase the debt at a percentage of its value, then attempt to collect it. Each country has its own rules and regulations regarding collection agencies.

    Pls See: en.wikipedia.org

    This article gives information regarding the following:

    1. Information about Collection Agencies in Canada

    2. Rights of Consumers

    3. Rights of Collection Agencies

    What is Information about Collection Agencies in Canada?

    The Office of Consumer Affairs says that the collection agency is a company that intervenes to recover money owed by people in debt. Your creditors — the people to whom you owe money — pay these agencies to recover the amounts you owe them. If you owe money to a company or a supplier and have not recently sent in your payment, that company or supplier can turn your file over to a collection agency.

    Here are some useful tips about collection agencies:

    1. You must be notified in writing that your file has been given to a collection agency. Don't panic. The agency is trying to recover the money you owe its client.

    2. If possible, pay the amount you owe.

    3. If you are unable to pay it all at once, contact the agency and explain.

    4. If you reach an agreement with the agency, get it in writing.

    5. Never send cash. Make sure that you obtain a receipt for your payment from the agency.

    Do you feel you have been treated unfairly by a collection agency? Although the regulations differ slightly across Canada, a collection agency is usually only allowed to do certain things. Find out more so that you will be able to protect yourself from aggressive debt collectors The complete list of what debt collectors can and cannot do, as well as contact information, are available in the Canadian Consumer Handbook.

    Pls See: ic.gc.ca

    What are the Rights of Consumers?

    Canada maintains a rightful balance between creditors and debtors by implementing the Collection Agencies Act. This Act ensures the rights of consumers to be protected and governs the actions of collection agencies when attempting to collect a debt. Consider the following rights of consumers under this Act:

    Consumers have a right to dispute any debts they are allegedly believed to owe to a creditor appointed collection agency.

    Consumers have a right to seek a lawyer to handle contact with collection agencies. Once a lawyer is appointed, collection agencies must seize contact with the consumer and only contact the attorney.
    Consumers have a right to receive notice of a debt owed and notice that legal action may be taken via mail before further action can be taken by the collection agency.

    Consumers should not be abused through intimidation, threats and the use of profane language directed toward them from the collection agency.

    Consumers should not be contacted more than three times over a seven day period once the consumer has spoken with you in person unless it is via mail.

    What are the Rights of Collection Agencies?

    All Collection Agency employees must be licensed in accordance with their province's regulatory laws regarding debt collection agencies. Penalties could result in a fine of not more than $1,000 per unlicensed employee.

    Collections Agencies have a right to contact any party or parties responsible for accruing outstanding debt once permitted and appointed by the original creditor. However, collection agencies must first send a notice to the debtor(s) and wait a period of 6 days upon sending the notice to initiate further contact.

    Likewise, collection Agencies have a right to seek necessary legal action against the debtor or debtors in order to collect adequate monies owed to creditors.

    Pls See: ehow.com

    Proper Balance

    The Collection Agencies Act is a protection both for consumers and collections agencies. This is meant to give both parties the opportunity to resolve these problems in payment collections without having to undergo unpleasant incidents.

    Article Created: 2012-07-09
    Article Updated: 2013-08-05

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