Your Rights When Dealing With Collection Agencies

There are many reasons people don't pay their debts — financial setback, poor repayment habits, overspending or sometimes they're just not happy with a product they bought.

Whatever the reason, it's important to communicate with the person who is owed money. When creditors understand the problem, chances are they will work out a reasonable, manageable way for the consumers to repay debts.

The Collection Agencies Act prohibits collection agencies from doing certain things.
A collection agency may not:

• Contact you until six days have passed from sending you written notice of the following:
  • The name of the creditor
  • The balance owing
  • The name of the agency and its authority to demand payment
• Continue to contact you if you did not receive the notice unless a second copy of the written notice is sent to an address provided by you, and then contact may only be made six days after sending notice.
• Contact you if you send a registered letter to the agency saying that you dispute the debt and suggest the matter be taken to court.
• Contact you if you and/or your lawyer notify the agency by registered mail to communicate only with your lawyer, and you provide the lawyer's name, address and telephone number.
• Contact you on Sunday, except between the hours of 1 p.m. and 5 p.m., and on a holiday.
• Contact you other than by ordinary mail more than three times in a seven-day period without your consent, once the agency has actually spoken with you.
• Use threatening, profane, intimidating or coercive language, or use undue, excessive or unreasonable pressure.
• Continue to contact you if you have told them that you are not the person they are looking for unless they take reasonable precautions to ensure you are that person.
• Give false or misleading information to any person.
• Recommend to a creditor that a legal action be commenced against you without first sending you notice.
• Contact your employer except on one occasion to obtain your employment information, unless your employer has guaranteed the debt, the call is in respect of a court order or wage assignment or if you have provided written authorization to contact your employer.
• Contact your spouse, a member of your family or household, or a relative, neighbour or acquaintance except to obtain your address and telephone number unless the person contacted has guaranteed the debt or you have given permission for the person to be contacted.

If a collection agency has engaged in any of these prohibited practices in dealing with you, file a complaint with the Consumer Protection Branch.

Read more about this topic on the Ministry of Consumer Services website.