For those of you who may not have seen this, this is the BC Business Practices and Consumer Protection Act:
http://www.qp.gov.bc.ca/statreg/stat/B/04002_00.htm
Specifically, Section 7 deals with Debt Collection:
http://www.qp.gov.bc.ca/statreg/stat/B/04002_07.htm#part7
Some things people aren't aware of include sections that state if you request in writing that the collection agency only contact you in writing, they must comply. Failure to do so is an offense.
Also, a collection agency is only allowed to contact your employer ONCE for the purpose of verifying your employment or home address. They are not allowed to mention the debt, or call again.
If a collection agency calls you more than once per day, that is defined as harassment; Relief is provided for this harassment, up to and including the agency losing their license.
Anyway it's a neat document to look through. You need to deal with the collections agency sooner or later, but better to do it in writing. And always be curteous and explain that you are looking forward to resolving the "alleged debt". If you don't plan on paying the debt off, for example it's 5+ years old and you're just waiting for the statute to expire, never ever admit to the debt in writing. That will reset the 6 year statute.
If you find the collections agency is calling frequently on a very old item, chances are they either just bought it at a deep discount because it's about to surpass the statute, or they've had it for a long time and they've just realized that if they don't get some activity on the file, it will be past the statute shortly.
For those debts that you want to pay off, write a letter to the agency first asking what they are willing to settle at. You would be amazed at 20-50% discount if you can afford and agree to pay the debt all at once. I have helped a friend pay off a $4000 credit card debt for $2200. All he had to do was ask, and he saved $1800.
If all you can afford is a monthly payment, budget out what you can afford and stick to it. If you can only afford to pay $25, tell them that. Do it in writing and save it. If you have documented proof of your willingness to voluntarily pay off the debt, in the form of a courteous letter - it will make it all the more difficult for that collection agency to try and get a judgement against you.
I am not a lawyer, so take this with a grain of salt, but it is my understanding that generally judgements are granted in cases where the creditor can prove that the debtor had the ability to repay and chose not to.
Anyway, kind of rambling on here. I believe that 90% of people who have collection problems are good people who have fallen behind or have had unseen circumstances befall them. I can guarantee that 100% of the readers on this forum fall in that category because deadbeats don't spend time on forums figuring out how to deal with their debt.
To that end, remember: You are not a bad person. Collection Agencies are for-profit companies that buy up your debt at a discount in the hopes of turning a profit. It was their choice to pick up that debt. The under-educated collections "officers" are working on a small base with a sizeable commission; that commission is based on weekly take. The more people they can get to send in a payment by Friday, the more money they get. And so they use as many scare tactics they can, including screaming, yelling, threats, verbal abuse, etc... One case of harassment is enough to launch an investigation with the BCPCA:
http://www.bpcpa.ca/index.php?option=com_content&task=view&id=145&Itemid=75
And because the majority of the public has no idea what their rights are, they jump to and empty their chequing account to appease the collector and stave off the impending legal hurricane....
Do not let a collector make you feel like you are harming them in some way. You are responsible for your debt, but NO ONE has the right to make you feel bad about it.
Ok everyone, be good, stay happy!
Godsall