Credit Problems? How to legally reduce or eliminate all your debts.

WHAT COLLECTION AGENCIES

CAN AND CAN NOT DO

Since collection agencies only get paid when they collect these debts, they can be very persistent. While you are responsible for paying money that you owe, the Collection Agencies Act says that all collectors must be licensed. This means there are rules that collection agencies must follow when they contact you.

The rules:

Collectors must contact you by mail before making any contact by phone or otherwise.

Collectors cannot collect more money than you owe the business or person who hired them.

Collectors are responsible for making sure that you actually owe the money. They must tell you who is looking for repayment when they contact you.

Collectors may not make collect calls to you to demand repayment.

You may ask collectors to only contact you through a lawyer.

Collectors may not threaten or intimidate you or use abusive language.

Collectors may not call so often or in such a way that you or your family feels harassed.

Collectors may not call on a Sunday, or between 9 p.m. and 8 a.m.

Collectors may not lie about you (directly or indirectly) to your family members or to anyone that you owe money to.

Collectors may not give information, or threaten to give information, to anyone that could affect your employment.

Collectors may not contact your employer, friends, acquaintances, family or neighbours unless they have guaranteed or co-signed the loan they are trying to collect, except if they are looking for your address.

Collectors may not take you to court – unless the collector has taken on the debt from the company that you originally borrowed money from

YOU MAY HAVE A VALID COMPLAINT AGAINST A NEWFOUNDLAND  COLLECTION AGENCY IF YOU CAN PROVE ANY OF THE FOLLOWING HAVE OCCURRED

 

• Collector was threatening and/or intimidating
• You have informed the collection agency that it is not your debt and continue to be contacted
• You have asked to be contacted in writing only and they continue to call
• Collector was using excessive pressure
• Collector published or threatening to publish your inability to pay
• You have disputed the debt with the debt collector and creditor and continue to be contacted
• You did not receive anything in writing prior to receiving calls
• Collector will not disclose his/her identity
• Collector called you at work more than once and you have provided my home contact information
• The collector has called an acquaintance and has asked for information other than your home address and phone number and you have not authorized the collector or creditor to do so in the past
• The collector has called your employer and has asked for more information other than confirming your employment, business title, and address and you have not authorized the creditor to do so in the past
• The collector has called you before 7 am or after 9 pm Monday to Saturday, or before 1 pm or after 5 pm on a Sunday, or on a statutory holiday
• The collector is attempting to collect more than you owe

THREATS OF LEGAL ACTION?

If the collection agency or what appears to be their legal staff make written or verbal threats of legal action, have a lawyer send you a `draft` statement of claim or use other shady tactics report them to the

NEWFOUNDLAND LAW SOCIETY

However you should never trust a law society to actually help you.