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If you are in debt and have fallen behind in your payments, you may have received phone calls or letters demanding payment. If you’re far enough behind, you may even be threatened with court action, or the seizure of your car or furnishings. Sometimes you might even receive calls about a debt that isn’t yours. If so, you should know your rights.
If you're behind on debt payments, there are laws to protect you from harassment by collectors. For example, collectors can’t use threatening language or contact you during certain times of day.


==The law protects debtors from unreasonable collection practices==
==Understand your legal rights==
Without debt collection laws, there is the potential for abuse by people trying to collect a debt, including midnight phone calls demanding payment, complaints to a debtor's employer about the debt, and threats of terrible consequences. The law protects debtors (people who owe money) from these types of unreasonable collection practices.


==How does the ''Business Practices & Consumer Protection Act protect debtors''?==
===The difference between a collector and a collection agent (and why this matters)===
In British Columbia, the ''[http://www.bclaws.ca/civix/document/id/complete/statreg/04002_00 Business Practices and Consumer Protection Act]'' (administered by [https://www.consumerprotectionbc.ca/ Consumer Protection BC]) ensures the collection of debts is reasonable. The Act has two important aims:
Under the [https://www.canlii.org/en/bc/laws/stat/sbc-2004-c-2/latest/sbc-2004-c-2.html#sec113_smooth law in BC], a '''collector''' is a person who is collecting or attempting to collect a debt. BC debt collection laws apply to any person or business that fits this description. It could be a retail business you bought furniture from, a cellphone company you signed a contract with, or a collection agency that has taken over your overdue credit card debt.


* to license debt collection businesses and collection agents
A '''collection agent''', meanwhile, is someone who in the course of business collects debt for other parties. A party who is owed money (a creditor) might decide to “sell” the debt to a collection agent. In exchange, the collection agent typically promises to give the creditor a portion of the debt the agent is able to recover.
* to regulate the conduct of creditors and debt collection businesses


The Act recognizes that creditors have a right to collect money owing to them and outlines how and when a collector may contact a debtor, but at the same time, it recognizes that debtors should be protected from unreasonable debt collection activities.  
====Why this matters====
Collection agents have no special legal powers to collect from a debtor. They are like any other creditor. That said, collection agents are known for their aggressive tactics. (Agents make money only if they recover some of the debt, which can lead to more aggressive tactics.) Some collection agents contact debtors often and use intimidation to scare debtors into paying. Many of the laws we explain here are designed to protect debtors from these types of tactics.  


==What are debt collectors and how do they operate?==
====Collection agents must be licensed====
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.
As well, collection agents must be licensed by [https://www.consumerprotectionbc.ca/ Consumer Protection BC]. If a collection agent is treating you badly, Consumer Protection BC has more scope to penalize them.  


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.
===A collector can’t harass you===
Under the law in BC, a collector (including a collection agent) can’t communicate with a debtor in a way that amounts to '''harassment'''. Examples of harassment include:
*using threatening, profane or intimidating language
*exerting excessive or unreasonable pressure
*publishing or threatening to publish a debtor’s failure to pay


==Creditors and debt collectors cannot harass you==
For example, a collector can’t phone your home every hour demanding payment. This would be exerting excessive or unreasonable pressure.
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
This rule also covers a member of the debtor’s family or household, a relative, neighbour, friend or acquaintance, or the debtor’s employer.
* exerting excessive, undue, or unreasonable pressure
* publishing or threatening to publish the debtor’s failure to pay what they owe the creditor


The ''Business Practices and Consumer Protection Act'' also prohibits debt collectors from continuing to communicate with a debtor directly, once the debtor has told the debt collector to communicate with the debtor’s lawyer and provided the lawyer’s address.
As well, under [http://canlii.ca/t/7vf2 Canada’s criminal laws], a collector mustn’t:
*threaten to harm a debtor or their property
*abuse its authority to get money from a debtor
*convey false information with the intent to alarm a debtor


Beyond the ''Business Practices and Consumer Protection Act'', the ''Criminal Code'' also prohibits direct threats of harm to persons or property, extortion, and conveying false messages with intent to alarm.
A collector can’t be deceptive. For example, they can’t send you letters that look like they come from the government when they don’t. That’s considered false information designed to scare you.  


==Creditors and debt collectors cannot intimidate you==
==How a collector can contact you===
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==
====The collector must first send you written notice====
Creditors and debt collectors can’t use forms or documents that look like they come from a court or the government. For example, they can’t mail you a letter that looks like a court summons or document and demands payment because that would be misleading.
Under the [https://www.canlii.org/en/bc/laws/stat/sbc-2004-c-2/latest/sbc-2004-c-2.html#sec115_smooth law in BC], a collector can’t try to collect payment of a debt until they’ve sent the debtor written notice. This notice must include:
*The name of the creditor (both the original creditor and the current one if it’s different).
*The amount of the debt (both on the date it was first due and the amount currently owing).
*The collector’s identity, and its authority for collecting the debt.


==Can creditors and debt collectors contact your employer?==
However, a collector can call a debtor before sending the notice if the collector is only trying to find out the debtor’s home address or email.  
Yes, but creditors and debt collectors must be careful when contacting your employer. They can do so only to confirm your employment. So they can’t harass your boss, or harm your reputation by suggesting that you should be fired because of your debts. But a creditor or debt collector can make one attempt to collect a debt from you while you’re at your place of work, if they can’t reach you at home or if you won’t respond.


==Only the right amount can be collected, and only from the right person==
====What time of day a collector can contact you====
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.
Under [https://www.canlii.org/en/bc/laws/stat/sbc-2004-c-2/latest/sbc-2004-c-2.html#sec118_smooth BC law], a collector must '''not communicate''' by telephone or in person with a debtor:
*from Monday to Saturday before 7 am or after 9 pm
*on a Sunday before 1 pm or after 5pm
*on a statutory holiday at any time


==If you experience harassment or unreasonable collection practices==
This rule also applies to:
You have three options:
*a member of a debtor’s family or household
*a relative, neighbour, friend or acquaintance of the debtor
*the debtor’s employer
*any guarantor of the debt


* complain
===When a collector can contact you at work===
* accept only written communications
Under [https://www.canlii.org/en/bc/laws/stat/sbc-2004-c-2/latest/sbc-2004-c-2.html#sec116_smooth BC law], a collector can only contact a debtor at work in one of the following situations:
* ask the creditor to sue you
*The collector doesn’t have the debtor’s home address, phone number or email, and is only trying to get that information.
*The debtor permits the collector to contact them at work.
*The collector has attempted to contact the debtor at home, by phone or by email, but has failed to connect. In this case, the collector must not make more than one verbal attempt to contact the debtor at work.


==Complain==
===You can request a collector contact you only in writing===
Ask to speak with a supervisor at the debt collection agency. If that gets you nowhere, you can [https://www.consumerprotectionbc.ca/consumer-help/start-a-complaint/ complain to Consumer Protection BC]. They can explain how to deal with the complaint directly with the debt collector. If the unreasonable collection behaviour continues, Consumer Protection BC may investigate and stop the debt collector or creditor. To make a complaint, call Consumer Protection BC at 1.888.564.9963 (toll-free).
Under [https://www.canlii.org/en/bc/laws/stat/sbc-2004-c-2/latest/sbc-2004-c-2.html#sec116_smooth BC law], a debtor can request that a collector communicate with them only in writing. (The debtor must provide their mailing address.)  


==Accept only written communication==
Alternatively, you can request that a collector communicate directly with your lawyer. 
If the type or frequency of the collection telephone calls is upsetting you and the calls won’t stop, you can request that all future communication be in writing only. It’s an offence if a debt collector doesn’t follow your request. Put your request in writing and keep a copy for your records.
[https://www.consumerprotectionbc.ca/ Consumer Protection BC] provides forms you can fill out and give to a collector to [https://www.consumerprotectionbc.ca/wordpress/wp-content/uploads/2017/06/Communication-in-writing-only.pdf request communication in writing] or [https://www.consumerprotectionbc.ca/wordpress/wp-content/uploads/2017/06/Notify-a-collection-agency-you-wish-for-communication-to-be-done-through-your-lawyer-only.pdf through a lawyer].


==Ask the creditor to sue you==
===You can dispute the debt===
If you disagree with the debt, you can notify the creditor and debt collector that you dispute the debt and want the creditor to sue you so a court can rule on whether you owe money. Once they receive your written notification, they must stop all other types of collection. Keep a copy of your communication to the creditor and debt collector for your records. A debt may still show on your credit report while you are disputing it.
Under the [https://www.consumerprotectionbc.ca/wordpress/wp-content/uploads/2017/06/Notify-a-collection-agency-you-wish-for-communication-to-be-done-through-your-lawyer-only.pdf law in BC], you can '''dispute a debt''', inviting the creditor to take the matter to court. You might dispute a debt where:
*the debt was already paid
*it’s someone else’s debt
*the collector is asking for more than what’s owed


==What if you’re contacted about a debt that isn’t yours?==
Once you notify the collector and the creditor that you dispute the debt, a collector must stop communicating with you.  
Tell the debt collector that you are not the debtor. If the calls continue, contact Consumer Protection BC, who can help you.


==If you’re in debt, you have a legal obligation to repay the money==
To dispute a debt, you must contact the collector and the creditor in writing. Consumer Protection BC offers a [https://www.consumerprotectionbc.ca/wordpress/wp-content/uploads/2017/06/Debt-in-dispute.pdf form you can use to dispute a debt]. 
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.
 
==Common questions==
 
===Can a collector contact my family and friends?===
Only in very limited circumstances. Under the [https://www.canlii.org/en/bc/laws/stat/sbc-2004-c-2/latest/sbc-2004-c-2.html#sec117_smooth law in BC], a collector can contact a debtor’s friends or family members only to request the debtor’s home address, phone number or email. Two exceptions to this rule are when:
#The person being contacted has guaranteed the debt, and is being contacted about the guarantee.
#The debtor has given permission to the collector to contact the person about the debt.
 
It’s illegal for a collector to harass a debtor’s friends or family members. See above for a description of what amounts to harassment.
 
===Can a collector contact my boss?===
Only in two circumstances:
#For the purpose of confirming your employment, work title and work address. In this case, the collector must first give you notice they intend to bring legal action to recover the debt.
#If you authorize (in writing) the collector to contact your employer.
 
Otherwise, a collector must not communicate with your employer.
 
As well, it’s illegal for a collector to harass a debtor’s employer. For example, a collector can’t repeatedly call your boss to try to get you fired over an unpaid debt. 
 
===My child owes money, and the collector is coming to me for payment. Can they do that?===  
No. A collector cannot try to collect a debt from someone who doesn’t owe the money. Consumer Protection BC offers a [https://www.consumerprotectionbc.ca/wordpress/wp-content/uploads/2017/06/Not-the-debtor.pdf form to advise a collector you are not the debtor]. 
 
If you ''are'' responsible for the debt, things are different. For example, if you [[Co-Signing or Guaranteeing a Loan (Script 248)|guaranteed or co-signed a loan]], a collector can come to you for payment. In such a case, the collector would still need to follow the rules explained here. 
 
==Get help==
 
===With an unreasonable collector===
'''Consumer Protection BC''' licenses collection agents in the province and oversees debt collection practices. They can help if you have a complaint about debt collection.
:Toll-free: 1-888-564-9963
:Web: [http://www.consumerprotectionbc.ca/ consumerprotectionbc.ca]
{| class="wikitable"
|align="left"|'''Tip'''
People’s Law School’s information on [https://www.peopleslawschool.ca/everyday-legal-problems/money-debt/dealing-debt/dealing-debt-collectors dealing with debt collectors] includes step-by-step guidance on making a complaint about a collector.
|}
===With managing your finances===
The '''Credit Counselling Society of BC''' is a non-profit society that helps people better manage their money and debt.
:Toll-free: 1-888-527-8999
:Web: [http://www.nomoredebts.org/ nomoredebts.org]


==More information==
* See the [https://www.consumerprotectionbc.ca/consumer-help/ consumer help section] of [http://www.consumerprotectionbc.ca/ Consumer Protection BC], Or call 1.888.564.9963 (toll-free).
* If you are in financial difficulty or have trouble paying your bills, check script [[When You Can't Pay Your Debts (Script 253)|253]] on “When You Can’t Pay Your Debts”.




[updated July 2018]
[updated July 2018]


'''The above was last reviewed for accuracy by Bruce Hallsor and edited by John Blois.'''
'''The above was last reviewed for legal accuracy by [http://creaseharman.com/r-bruce-e-hallsor/ Bruce Hallsor QC], Crease Harman.'''


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