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Collection agents have begun calling me constantly demanding payments. Do they have a right to do this?
Unfortunately they do. It is important not to get over anxious about the situation, as the people you owe money to have a right to try to collect the money. If they never try to contact you, how will they be able to understand your financial situation?
But why do they call so often?
Most collection agents receive commission for every dollar they collect from you. Therefore, the more times they call you, the greater their chances of getting money from you and earning commission.
Do collection agencies have any rules?
They certainly do. Below is a list of some of the collection agency rules in St. John’s:
- You must be notified in writing when a company gives your overdue account to an agency for collection. You are responsible for ensuring that your creditors are made aware of address changes, so that you will receive the appropriate notices.
- Collection agencies are not permitted to make phone calls often enough that they constitute harassment. This might include repeated calls while you are at work. If you feel at all harassed by a collection agency, be sure to document each incident in case you choose to make a formal complaint in the future.
- Collection agencies cannot call you on Sunday or any other statutory holiday. They also may not call you before seven in the morning, or after nine at night on any day of the week.
- Collection agencies are not permitted to contact your friends, family members, neighbours, or employers for any information other than your contact information with limited exceptions. An exception might include when someone has cosigned something you have purchased.
What do I say when the collection agency calls?
It is important to refrain from being rude, despite how irritated you may be. Remember to speak in a professional and direct manner, and treat them in a way that you would like to be treated. Do not let yourself get intimidated into making commitments you cannot keep. Explain your reasoning to the collection agency clearly.
What will happen if I ignore the collection agency?
It is not wise to ignore the collection agency, as they may be able to pursue legal action against you if they are unable to contact you.
Are there ways to get the collection agency to stop calling me?
There are several ways to get a collection agency to stop calling you, but the easiest way is to get a handle on your financial situation. We recommend contacting a licensed bankruptcy trustee in St. John’s, Newfoundland, so they may review the available alternatives, and help you get on the right track. It may be necessary for you to file a consumer proposal, or possibly even a personal bankruptcy. To find a licensed bankruptcy trustee in St. John’s, click here.
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