When you are in financial trouble, you are likely going through a lot of stress. Harassment by debt collectors will only add to that stress. If you are being harassed by debt collection companies, it is important to know what your rights are, as well as the rights of collectors. We often get calls from individuals who are quite upset about what they have been told by collectors. A collection agent cannot garnish your wage or seize your assets without beginning a court action, but that does not stop them from threatening you with these types of action.
There is legislation in each province that governs collection agents and protects the debtor. The following are common in each province:
- Collectors may contact you by telephone, mail or fax, but are not to call at unreasonable times or places. To use one example, in Saskatchewan unreasonable times are before 8 a.m. or after 9 p.m., as well as Sundays or holidays;
- A collector may contact you at work, unless you have told them not to;
- At no time is a collector allowed to discuss your financial situation with anyone other than those responsible for the debt;
- Collectors cannot send documentation that appear to be court documents;
- Collectors cannot harass you, your spouse, family or friends.
If you are dealing with any of these situations, there are agencies in each province where you can report the issue.
What Are Your Options?
When you are faced with a debt load that continues to grow and more of your accounts are being handled through debt collection agencies, it’s time to come up with a plan. If you have one debt that has gone to collection and you have the ability to deal with it, you need to communicate that to the collector. You may be able to make payments or they may offer you a settlement amount in full satisfaction of the debt. In either case, all correspondence needs to be in writing so there will be no confusion at any time. You will want them to provide you with a written document of the agreement. Never pay in cash and keep proof of your payments.
If you feel you can no longer maintain your debt obligations, please contact one of the restructuring professionals at MNP Ltd.
We are here to assist you in developing a plan to stop harassment from debt collectors.
