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Ontario|Debt and BankruptcyCredit Issues 254 Collection agencies Collection agencies are either hired by creditors to collect debts on their behalf, or collection agencies purchase debts at a discount and keep the entire amount if they are able to collect it. If a collection agency phones you, this probably means you have more severe financial difficulties than you think. You may consider credit counselling or at least work out your budget and consider what payments you can realistically make. You can try to negotiate a payment schedule or payment of a reduced lump sum amount. The collection agency should stop calling if you are able to reach an agreement.
Although collection agencies can be very persistent, the law places limits on their behaviour. First, collection agencies cannot add any extra fees or amounts to the money you owe. Second, they cannot harass or intimidate you, and they cannot threaten you in any way, whether by mail, over the phone, or in person. Third, they cannot call you on Sundays, and they cannot call you between nine o'clock at night and seven o'clock in the morning. And finally, they cannot tell you false or misleading information. For example, they cannot send you false notices or agreements, and they cannot tell you they have started a court action when they have not.
If you need help dealing with a collection agency or if you think the collection agency is breaking the law, you may make a complaint to the Consumer Services Branch of the Ministry of Consumer & Business Services. The telephone number can be found on the Legal Line Guide or website, or in the Blue pages of your telephone book. You may also be entitled to bring an action against them in Small Claims Court. Contact a lawyer for more information.
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