Debt collectors can be rude and this is no secret. At least they aren't going around breaking legs! They can however, make you feel like a criminal and say some pretty harsh things. They just really want their money back and really come close to pushing their boundaries. I'll help explain how far they can actually go. It's important to know your rights if you ever get a call from these guys and feel like you're being harassed.
Why Do I Get These Calls?
People receive calls from collection agencies because they didn't fulfill their end of the agreement on the loan. This could be because of missed payments or the inability to pay because they are insolvent. Now that it's explained, it would appear that the people who borrowed money are the bad guys. Why did they borrow money if they couldn't pay it back? Well, that's because of their own personal reasons but the borrower is definitely showing signs of irresponsible financial actions.Receiving A Call
Should you just ignore it? It depends but generally, no. If you truly want to show good faith towards your lenders, you should communicate with them. You can pretend that you're never available but your debt problems won't go away because of that. You might even get sued and you'll be forced to make payments from your salary. However, be aware that some calls could be fraudulent. Ask questions before giving out any information. You should always verify any information they tell you to ensure it's legitimate and accurate. You should ask and write down questions like:- Who your debt belongs to?
- What is the owing balance of the debt?
- When you started owing?
- The name of the person calling
- A reference or account number
- Contact information for you to reach out to and verify
After receiving the information from your caller, check your records and accounts to verify who you owe and how much. You should also search the contact information you were provided to ensure you're not being scammed. If you cannot verify the contact information they've given you, contact your lender directly. Although most people know that they carry a debt so you should be able to tell if it's fake or not. The right thing to do is to come up with a plan to pay back your debts and contact your lenders. If you can't then consider getting help from a Licensed Insolvency Trustee for a consumer proposal or bankruptcy.
Your Rights
You'll be surprised to learn who collection agencies can contact. You might affect your personal relationships with friends and families if they're receiving calls because you didn't pay off your debts.They ARE ALLOWED to reach out to the following to get your phone number or address:
- Friends
- Families
- Employers (they can also contact your employer to confirm your employment)
- Neighbours
- A co-signer or someone who guaranteed your debt
- Other people if you gave them permission to contact as a condition of your debt
- Add legal fees or fees for non-sufficient payments
- Apply reasonable pressure to you to repay your debts
They ARE NOT allowed to:
- Make suggestions to other parties to pay your debt unless it's a co-signer (including your spouse unless they co-signed with you)
- Make threatening, intimidating or abusive language
- Apply unreasonable pressure to you to repay your debts
- Provide false or misleading information
- Call you on your cell phone unless you provided that number for them to reach you
- Add any collection based cost with the exception of the above listed
Regarding call times, keep in mind there are restrictions as to when they are allowed to call you. They are not allowed to annoy you on holidays because everyone gets a break but they can call you during these times:
- Monday - Saturday between 7AM and 9PM
- Sunday between 1PM and 5PM
Harassment
If your rights are not being respected, you can make a formal complaint about them to the appropriate regulator. I can understand that it's frustrating to receive these calls but there are cases where the individual doesn't fully understand what the collection agencies can and cannot do and they go ahead to make a complaint regardless. Make sure you understand if they are actually acting within their powers before filing a complaint. It may just end up being a waste of time and energy for it to be thrown out because of a misunderstanding on one side. As always, you can read more in detail here.Now's here who to contact if you actually need to make a complaint.
Contact the Financial Consumer Agency of Canada (FCAC) if the collection agency is owned or hired by a regulated financial institution. All the major banks and credit companies are federally regulated.
Contact the Consumer Affairs Office in your Province/Territory if your debt has been sold to a collection agency.
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