Having debts to pay can be stressful for you, especially during a challenging time for the economy. Debt collection agencies can make things twice as stressful with some of their methods and practices. Fortunately, there are things that a debt collection agency can and can’t do depending on where you live. You must educate yourself so that you know what’s right and wrong when you deal with them. The following is some information about debt collection agencies and what your family needs to know about them.
What Can a Collection Agency Do?
A collection agency is a company that has the right to collect any unpaid or past due debt from a creditor. Therefore, they are allowed to contact you regarding your debt and attempt to arrange installments if you cannot pay the entire debt when they contact you. They also have the right to file court proceedings if you do not repay the debt, and they are still within the statute of limitations. Furthermore, the agency can also report the unpaid debt on your credit file for up to six years in most areas. Debt collection agencies must professionally handle themselves at all times. They must abide by specific rules to ensure that they exercise a sense of integrity while they collect debt.
Can Debt Collectors Take You to Court?
First, we’ll address the question, “Can a collection agency take you to court in Canada?” The simplified answer to that question is yes. A debt collection agency can take you to court if it is licensed as a collection agency. Such an agency can sue you for the debt for up to six years after the last recognition of the debt occurred. The collection agency cannot sue you after that statute of limitations has passed. The statute of limitations differs depending on where you are located so be sure to research this.
What Can’t a Collection Agency Do?
Collections agencies cannot call you outside of the hours of 7 a.m. and 9 p.m. They may not call you on a statutory holiday or a Sunday outside of the hours of 1 p.m. and 5 p.m. That rule also applies to contacting your family members, associates and place of employment. Debt collection agencies are not allowed to threaten to take legal action against you if they do not have the authority to do so. Additionally, they may not provide false or misleading information to collect a debt. They cannot pretend to be someone other than who they are or lie about the purpose of the call.
A debt collection agency may not attempt to collect a debt from a person who isn’t liable for the debt, and they cannot collect more than the amount that a consumer owes. Furthermore, the agency cannot falsify any court documents or use such documents as a scare tactic to receive a debt payment. Many other rules exist, and you can find more information about them by speaking to a professional.
What to Do About Debt Collector Harassment
There are a few things you can do if you believe that a debt collection agency is harassing you. First, you can contact a lawyer. A lawyer can perform actions that will cease the unlawful debt collection practices immediately. You can also employ the help of a licensed credit counselor. The collection agency must contact your attorney or credit counselor if you have hired such individuals to help you. Alternatively, you can report unfair debt collection practices. You do not have to accept the treatment of an agency that is not carrying itself as it should. You do have resources, and you should utilize them any time that you feel uncomfortable about an agency’s practices.
Stay Informed About Your Debt
Now you have more information about debt collection agencies and their rights and limitations. You can now handle your debts as an enlightened consumer. If you have any questions or concerns about debts that you owe, you can contact a licensed trustee or credit specialist to discuss your concerns. The best way to combat credit issues is to know your rights and have someone in your corner who can help.
