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Difference between revisions of "Dealing with Debt Collectors"
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==What are debt collectors and how do they operate?== | ==What are debt collectors and how do they operate?== | ||
A debt collector is someone who carries on the business of collecting debts for others for a fee. If you bought a suit from a local store and haven't made the payments, the store owner may eventually give up on you and hire a debt collection business to recover the money from you. Normally the debt collection business charges the creditor (in this example, the store owner) a fee related to the amount they recover from you. If the debt collector recovers nothing, they get no fee, so they are more aggressive in their collection tactics than creditors who are doing their own collecting. | A debt collector is someone who carries on the business of collecting debts for others for a fee. If you bought a suit from a local store and haven't made the payments, the store owner may eventually give up on you and hire a debt collection business to recover the money from you. Normally the debt collection business charges the creditor (in this example, the store owner) a fee related to the amount they recover from you. If the debt collector recovers nothing, they get no fee, so they are often more aggressive in their collection tactics than creditors who are doing their own collecting. | ||
The ''Business Practices and Consumer Protection Act'' prohibits debt collectors from suing to collect debts unless the debtor has been given notice that the debt has been assigned to them from the creditor, or the debt collector has given notice to the debtor that they intend to sue. The notice is usually a letter to the debtor demanding payment and describing the debt claim, the nature of the default, the terms for resolution, directions for reply, and a specific deadline for the reply. But if the collection has not been assigned to a debt collector, a creditor can sue without first sending the debtor a letter demanding payment. | The ''Business Practices and Consumer Protection Act'' prohibits debt collectors from suing to collect debts unless the debtor has been given notice that the debt has been assigned to them from the creditor, or the debt collector has given notice to the debtor that they intend to sue. The notice is usually a letter to the debtor demanding payment and describing the debt claim, the nature of the default, the terms for resolution, directions for reply, and a specific deadline for the reply. But if the collection has not been assigned to a debt collector, a creditor can sue without first sending the debtor a letter demanding payment. | ||
==Creditors and debt collectors cannot harass you== | ==Creditors and debt collectors cannot harass you== | ||
The general rule is that anyone collecting a debt—either a creditor or a debt collector—cannot communicate or | The general rule is that anyone collecting a debt—either a creditor or a debt collector—cannot communicate or try to communicate with a debtor or their family, acquaintances, or employer in a way that is harassment. Harassment is defined in the ''Business Practices and Consumer Protection Act'' to include: | ||
* using threatening, intimidating, profane, or coercive language | * using threatening, intimidating, profane, or coercive language | ||
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==Creditors and debt collectors cannot intimidate you== | ==Creditors and debt collectors cannot intimidate you== | ||
A debt collector is not allowed to contact you, your family, or your employer in | A debt collector is not allowed to contact you, your family, or your employer in a way that may cause alarm, distress, or humiliation. For example, they cannot phone your home every ten minutes all day long demanding payment, because it is likely that the tactic will cause distress to your family members. Similarly, they can't stand on your front lawn with a megaphone, demanding payment, for all your neighbours to hear. Those are extreme examples, but many more subtle techniques are also forbidden. | ||
==Creditors and debt collectors cannot mislead you== | ==Creditors and debt collectors cannot mislead you== | ||
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==Only the right amount can be collected, and only from the right person== | ==Only the right amount can be collected, and only from the right person== | ||
Debt collectors cannot | Debt collectors cannot try to collect money from someone who doesn’t owe the money. Nor can they try to collect more money than is owed to the creditor. But interest can continue to accumulate on an outstanding debt, and they can collect that, if it is reasonable. | ||
==If you experience harassment or unreasonable collection practices== | ==If you experience harassment or unreasonable collection practices== | ||
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==If you’re in debt, you have a legal obligation to repay the money== | ==If you’re in debt, you have a legal obligation to repay the money== | ||
You | You must pay the debt, But the ''Business Practices & Consumer Protection Act'' regulates the practices that debt collectors can use in trying to recover their money. | ||
==More information== | ==More information== | ||
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[updated | [updated July 2018] | ||
'''The above was last reviewed for accuracy by | '''The above was last reviewed for accuracy by Bruce Hallsor and edited by John Blois.''' | ||
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