What To Do if You're Contacted By a Debt Collector

Previously, we looked at who can be a debt collector and what they can and cannot do when contacting you for payment. This week, we look at what you can do if you are contacted by a debt collector.

The rules differ from province to province so please get in touch with us at LegalShield Canada. We can make this sometimes scary and complicated process easier to understand and work through.

10 top tips to follow if you're contacted by a debt collector

1. Do not ignore the debt collector. While it is perfectly legal to hang up or not respond to a collector, doing so will not erase your debt and in fact, it may just make it worse. And if you owe money to a finance company or a bank, you might find your property being seized and other unpleasant actions you don't want to deal with.‍

2. Keep a detailed record of all your communications, whether by phone or email or anything else.

‍3. Make sure the person contacting you is legit. Ask for their name. Check their address, check their credentials, and if it's an agency, make sure they are licensed.

‍4. Ask for details of your debt in writing.

‍5. Send the debt collector notice in writing that you no longer want to be called by the agency. This will not stop the debt, of course or possible legal action against you but may give you some peace!

‍6. Take your time in coming up with a reasonable payment plan to get rid of the debt. Don't be threatened into something you cannot afford. And make sure that once you put forth a plan, you ask for written confirmation of the amount and confirmation that your debt will end once it is paid.

‍7. If your debt is relatively small, then the likelihood of you being sued may be generally lower than if you owe a lot of money.

‍8. If your debt is more than two years old, it's possible that legal action is no longer an option for the debt collector in your province, no matter what they say. In Ontario, for example, you can't be sued if the debt is more than two years old.

‍9. Know the details of your case! Come to LegalShield Canada for advice. We will read all the fine print and advise you of the best actions to take moving forward. We can guide you through all the options and explain your rights.

‍10. And if you need the services of a debt collector, we can help there, too, by carefully explaining the process to you.

If you feel like you are being harassed, you can complain

Every province has its own complaints process. If you feel like you are being intimidated or hurt in any way or you believe the person is not following the strict rules of the profession (i.e., calling after hours, not respecting your written notices), file a complaint with your provincial body. Make sure your evidence is in order, which is where your record of communications comes in handy. Be detailed. Consumer Protection BC, for example, will have a complaints manager assess your case and if it has merit, they will intervene on your behalf, which can range from ordering the collector to stop contacting you to having their license revoked if there are multiple complaints.

The takeaway

Our legal professionals can help you and guide you should you be contacted by a collection agency or a debt collector. There are strict rules for them to follow and harassment and intimidation are not among them. As your partner, we will work together to make sure you are comfortable with any payment or settlement plan that is proposed. And if you require a service to recoup a debt, we can go over the rules and make certain it is done professionally. Join the more than 4,400,000 people already protected by LegalShield and sign up today!

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‍Articles on the LegalShield.ca website are for informational purposes only and do not constitute legal advice or opinion in any manner. Laws mentioned in the articles vary from province to province. Any links to third-party sites in our articles are for general information purposes only and LegalShield is not affiliated with, nor does it endorse, the content of linked sites. It is always advisable to seek legal counsel and LegalShield can help.