How to deal with collection agencies

What is a Collection Agency?

A collection agency is a business that pursues payment of debts owed by individuals or businesses. Collection agencies are often paid a commission to collect a debt on behalf of a creditor. It is not unusual for a collection agency to purchase an outstanding account from a creditor and then pursue the debtor (you) for payment.

Collection agents are not allowed to harass you or your family. If you believe a collection agency is harassing you a complaint against them may be made.

Collection agencies are not allowed to contact your friends, relatives, neighbors or employer for any information other than your address or phone number. An employer may be contacted to verify your employment only.

Collection agencies are not allowed to call you on statutory holidays, Sundays (except between 1:00pm and 5:00pm), or any day before 7:00am or after 9:00pm.

Managing collection agents:

  • Don’t ignore the phone calls as this could lead to legal action including a wage garnishment.
  • Be sure you owe the debt. If there is any question ask them to forward documentation to prove their claim.
  • Don’t be manipulated into making a commitment you know you can’t keep.

Link to Collection Agencies Act – www.e-laws.gov.on.ca/html/regs/english/elaws_regs_900074_e.htm
Link to A Consumer’s Guide to Collection Agencies – www.ontla.on.ca/library/repository/mon/13000/258363.pdf

How do I stop the calls for good?

Contact a Paddon + Yorke Inc. professional for a free education about available options so you are in a better position to make an informed decision as to how to best deal with your current financial situation.