How to Deal With Collection Agencies in Canada

Dealing with collection agencies can be notoriously difficult. At times, they employ less-than-ethical tactics in order to recoup their money from unwitting consumers. However, consumers can fight back. You don't have to put up with Canadian collection agencies that employ bullying or harassing techniques to get their money.

Instructions

1. Know your rights. An educated consumer has the upper hand when dealing with collection agencies in Canada.

2. Ask for a copy of the contract in which the debt was transferred from your creditor to the collection agency. In this way, you know who you're dealing with and that the agency is legally allowed to have your financial information.

3. Ask for a copy of the collection agency's license as well as the license of the actual agent who has been assigned to your case. Anyone can purchase debt as a collection agency, but if that person is not licensed as a collection agent in Canada, you have no responsibility to work with him.

4. Specify to the collection agency when and where it can call you. In Canada, a collection agency is not legally allowed to contact you in times and places where you've asked it not to, such as a place of work. If you have asked the agency not to contact you at a certain location or time and the agency contacts you anyway at that location or time, the agency is subject to prosecution.

5. Take the offensive position when dealing with collection agencies. Don't let them bully you or make you feel ashamed of your debt. Take control of the situation so that the collection agency knows that you are the one calling the shots. Be confident and aggressive.

6. Work out a viable payment option, and present it to the collection agency. Nine out of 10 times, they will accept it, because they know that getting some money is better than getting no money at all.

Tips & Warnings

• In Canada, no laws mandate that you have to deal with collection agencies. They may be forceful and annoying, but you are within your legal rights to simply ignore them.

Resources

• Financial Advice for Canadians