Yvonne Hutten
Do you have debt that has been transferred to a collection agency? Are you getting phone calls from someone telling you if you don’t pay now, you’ll end up in court?
While it may seem easier to avoid answering the phone, ignoring a collection agency’s attempts to contact you will not help solve the problem!
A collection agency is a company that tries to get payment owed to a third party (such as Bell Canada, Zellers, etc). Once an overdue account officially has been turned over to a collection agency, the person who owes the money would deal only with the collection agency when making arrangements for payment, not the original creditor.
For example, you no longer would call Zellers to discuss your account as your account information is now with the collection agency.
Income from “Ontario Works” (welfare), Ontario Disability Support Program (ODSP), disability pensions (i.e. WSIB), and government pensions is protected from garnishment by collection agencies and other creditors.
If your income is from one of these sources, you should tell the collection agent.
It is possible for a collection agency to take you to court, however, they typically only will start legal action if they have information that you have the ability to pay but you have not done so.
Collection agencies are regulated by consumer protection law in Ontario, and have many rules they must follow. If a collection agency wants to pursue you for payment, they are required to tell you in writing the name of the collection agency and its authority to demand payment, who they are trying to collect money for, and the amount owed or balance owing.
Once a collection agency has spoken with you, they may not contact you (by phone, voicemail, or e-mail) more than three times in any seven-day period on behalf of the same creditor without your consent.
Collection agencies may not call Sundays before 1 p.m. or after 5 p.m., they may not call on statutory holidays or call any day before 7 a.m. or after 9 p.m., and they cannot threaten you or swear at you, mislead you or lie to you.
Collection agencies may not contact your friends, relatives, neighbours, or employer for any information other than your address or telephone number (with limited exceptions, for example, if there is a co-signer on your debt).
A collection agency may contact your place of employment only once to confirm your employment, your home address, and phone number.
Keep in mind that you should deal with a collection agency in a direct and professional manner–treat the agent on the other end of the phone the way that you like to be treated yourself.
Do not let a collection agent bully you into making a commitment you know you cannot keep, and never give personal information such as bank account information or where you work.
Be sure to ask for documents to prove that you owe money and to show how they have calculated the amount owing. If you pay money to a collection agency, always keep proof that you paid (money order, receipt, etc.)
It is best to use a money order so your banking information is not revealed.
If you feel a collection agency is harassing you, keep track of all of their calls as you will need a written record to back up your complaint. Write down the following information for each call: the caller’s name, phone number, the name of the agency, the debt they are calling in regards to, and the time and date of each call.
Make a complaint to the collection agency in writing and keep a copy of your letter.
If the harassment does not stop, you can make a complaint to the Ministry of Government Services at 1-800-889-9768 or through its website at ontario.ca/consumerprotection
How do you avoid having to deal with collection agencies? If you are unable to make payments on your debts, the best thing to do is contact your creditors and tell them your situation as soon as possible.
Most creditors are flexible with payment arrangements, particularly if you have taken the initiative in contacting them instead of waiting until they have to contact you because your account is overdue.
More information on dealing with collection agencies is available from the Rainy River District Community Legal Clinic at 601 Mowat Ave. (274-5327).
