Collections
Collections refers to the process by which creditors and collectors take reasonable steps to secure the payment of debts owed by consumers who are legally bound to pay or repay the money they owe.
In the event your payment becomes overdue for money owed to a lender or a supplier of goods or services, the creditor may employ the services of a debt collection agency, particularly if a payment is two or more months past due. A collection agency is a third party that intervenes on behalf of a creditor in order to recover money owed by a debtor. In Canada, debt collection is governed according to the different provinces and territories. All provinces and territories have similar laws that attempt to strike a balance between giving creditors a chance to collect the money they are owed and safeguarding of the debtor’s right to be treated with dignity and not be subjected to excessive harassment.
Spotlight on Collections
Outsourcing Collections for Your Business
Many businesses do not have the staff size, time or training to handle collections for their company. In these cases, outsourcing collections for your business can be the best course of action for your bottom line. Outsourcing collections means that you hire a company to deal with collections and... Continue Reading »
Outsourcing Collections for Your Business
Many businesses do not have the staff size, time or training to handle collections for their company. In these cases, outsourcing collections for your business can be the best course of action for your ...
Handling Collection Calls
Any time you are behind on bills, there is the possibility you will receive a collection call. These calls are always a concern if you are low on money and cannot afford to pay the requisite bills. If y...
About Collections
Once a creditor requests for the services of a collection agency, it is the responsibility of the creditor to write you a letter notifying you that your credit file has been handed over to a collection agency. At this point, the best solution would be to pay the amount of money you owe. However, in the event that you can't repay the entire amount at once, you may contact the agency and explain your situation to them. In some cases, you may come to some agreement regarding how you should pay your debt. Should you reach such an agreement, be sure to have it in writing to avoid any complications in future. Never send cash to the collection agency. Instead, you should use a check and ensure that you obtain a receipt of payment from the collection agency.
Canadian regulations on debt collection do not allow unfair treatment of debtors by collection agencies. For instance, a representative of a collection agency is not allowed to make phone calls of such a nature or frequency as to constitute harassment of the debtor or the debtor's family. For this reason, there are times which have been set out as being and not being opportune for a collection agency representative to call the debtor. Moreover, collection agency representatives are prevented from jeopardizing the job of the debtor by pursuing them at their places of employment. Consumers who wish to complain about a particular collection agency may do so by contacting their provincial or territorial office of consumer affairs for assistance. As such, Canadian consumers are adequately protected by law from aggressive debt collectors.