Fair Debt Collection Practices

The Collection Agencies Act

Abusive debt collection practices contribute to a number of personal bankruptcies, marital instability, the loss of jobs, and invasions of individual privacy. When one is faced with the challenge of overdue bills, accounts that are behind may be sold to a collection agency. Communication is imperative when in a situation where you are unable to meet your financial obligations. Responsible communication is important on the part of the consumer (you) and of your bank.

The Collection Agencies Act regulates the practices of collection agencies and holds them accountable for their actions.

• The act states that you must be notified in writing that you have a debt to be collected or if any legal action is going to be taken to collect a debt.
  
  
• Collection agencies may not contact you in any way that may be perceived as harassment.
  
  
• They may not call you on Sundays or before or after specific hours on statutory holidays.
  
  
• When contacting you, collection agencies must disclose the bank or company that originally held the debt that you owe.
  
  
• Collection agencies are not permitted to contact friends or relatives of yours unless there are provisions on the account that state otherwise. It is very important that you know your rights when dealing with a collection agency.
  
  

It is also very important that you communicate your situation with your creditors and/or the collection agency. If you have made attempts and you are getting nowhere, contact your local government to file a complaint if the agency is not adhering to the law and then contact Consolidated Credit Counseling Services of Canada, Inc. by calling 1-800-656-3920 for additional assistance.