Blog

Dealing with Debt Collectors – 10 Consumer Rights You Should Know

By Debt.ca on October 8, 2020 No Comments
Debt collection rights

It’s indeed a pain in the neck if you’re dealing with debt collectors several times a week. Some debt collectors are known to be rude, intimidating, and straight-up obnoxious. They will try every tactic – no matter how abusive and unscrupulous – just to get you to pay back your debts.

Most debt collectors get away with such underhanded methods due to the fact that a lot of people are unaware of the laws governing proper debt collection practices. In Canada, there are rules imposed by provincial governments. They dictate how debt collectors should conduct themselves so as not to step on the rights of the debtors.

As a consumer, you must know your rights when dealing with a debt collector. Here’s a list of consumer rights you need to know when debt collectors contact you.

You Can Request the Collector To Stop Calling

You can write a letter to the debt collecting agency requesting them to stop calling you. Make sure to ask them politely about it in your letter. Indicate why they should not call, and put your preference in writing. Then, the agency can reply with a written letter telling you about what their next actions will be.

Having a written record is a good thing about communicating with a debt collection agency. You’ll have written proof of it if there’s a debt collection violation.

You Can Request the Collector to Verify Your Debt

You have the right to ask the debt collector through a written letter to validate and provide proof of your supposed debt. Make sure to send the letter within 30 days since they first contacted you.

The collector should stop calling you after receiving your verification request until they’ve provided you a proof. You should see to it that the debt is yours and that the amount is accurate.

You Can Dispute Inaccurate Debt Reports

It’s mandated by law that the debt information that shows on your credit report should be timely and accurate. If there’s an error in your credit report, you can dispute it. Contact the credit bureau and request they take down the inaccurate information. If the dispute to the credit bureau is not successful, you can inquire with the collection agency regarding that matter.

You Can Ask the Collector to Stop Contacting You at Your Job

As mentioned earlier, debt collectors will try everything just to collect money from you. It’s common for debt collectors to make phone calls to your place of work. However, such behavior is prohibited by law.

If ever you receive a phone call from a debt collection agency at work, you can ask them to stop calling you. Write a letter to them because a letter serves as documentary evidence that you send such a request.

Details of Your Debt Must Be Kept Private

Debt collectors are prohibited to divulge to anyone about the confidential details about your debt. Keep in mind that it’s your right to keep your debt information private. But they are allowed to communicate with your parents, legal guardian, spouse, or lawyer to ask for your contact information if they can’t contact you.

However, debt collectors can only contact them one each. They can’t ask your friends, family members, or spouse to pay your debts.

Collectors Should Be Honest in Doing Their Job

Debt collectors should not pretend as lawyers or people working with the government. They shouldn’t give false information or misrepresent documents as having legal bearing when they’re not legal or say that documents don’t have a legal bearing when they’re.

Whenever you catch a debt collector being dishonest in doing his/her job, you should inform him/her about the debt collection laws and your rights as a consumer to honest and truthful information.

Pay Only the Amount You Owe and Nothing More

If you think the collector is collecting an amount that is higher than your original debt, you shouldn’t hesitate to dispute it. Also, you have to know that collectors are prohibited to impose any fee or interest to your account unless it’s stipulated in the contract or it’s allowed by state law.

So, make sure to read the original agreement between you and your creditor and learn about the state laws regarding this matter.

You’re Allowed to Choose Which Debts to Pay

You can pick which debt to pay if you have multiple debts to your name. The debt collector is also not allowed to force you to pay a debt that you’ve successfully disputed. Provincial governments in Canada have different rules on this matter, so make sure to do your research or ask your lawyer concerning it.

You Can Withhold Payment on An Expired Debt

In debt collection, there’s what we call a statute of limitations, which is a timeframe that a creditor may file a legal action against a debtor for an unpaid debt. If you have debt that you have already defaulted for some time, this statute of limitations may protect you from civil lawsuits.

Since the debt is already expired, you can withhold payment on it. However, the time frame resets when you formally acknowledge your debt and make payments on it. The time limit for statutes of limitations differs by state and debt type.

You Can Sue a Debt Collector Who Infringes Your Rights

If a debt collection agency tramples the rights mentioned on this list, you can file a lawsuit against the said agency in federal or state court. You may receive actual damages if ever you win the case. So, make sure that you know your right as a consumer, especially when you’re dealing with debt collectors.

Takeaway

Does it already annoy you every time a debt collector contacts you to recover a debt? When dealing with debt collectors, you must know about the laws and consumer rights to ensure that you deal with it properly. You can also read blog articles on websites like debt.ca to learn how to manage your debt obligations and live a life free of debt.

Related to: 10 Consumer Rights You Should Know When Dealing with Debt Collectors

Avatar

Debt.ca

Admin


Dollarama low price store

Things You Should Always Buy at a Dollar Store

By Debt.ca on October 9, 2020

Dollar stores are great places for thrifty shoppers. But anyone who has ever used a dollar store cotton swab knows that there are just some things that you shouldn’t buy there. So, what should you buy at a dollar store? In fact, there are some things that are so much cheaper at a dollar store that…

Halloween decorations of poison and chemical bottles

Where to Splurge and Save Money on Halloween Candy

By Rubina Ahmed-Haq on October 5, 2020

It’s a good idea to save money on Halloween candy if you plan on participating at all this year. Halloween has become big business in Canada, but job losses due to COVID-19 may stifle the tradtional celebration methods. What was once a holiday exclusively for kids has now reached into offices, adult costume parties, and…

Man researching debt relief companies

What To Look For in a Debt Relief Company

By Debt.ca on October 2, 2020

Choosing the best debt relief company can be a difficult task. Debt is a sensitive topic and many Canadians are not comfortable sharing information about their very personal situation. However, it is important to ensure that you don’t spend all of your time worrying about settling debts. Doing so can derail you from achieving other…

trying to figure out how compound interest works

Understanding Compound Interest and the Potential Damage

By Debt.ca on September 30, 2020

Understanding compound interest and the risks of unpaid debt is essential if you owe money. Accumulated interest can cause you to pay much more than the initial cost. Sometimes, interest is compounded monthly. Other times, the frequency of compounding can vary and make your debt grow faster. If you feel overwhelmed by your credit card…

No Comments Leave a Comment  

Leave a Comment

Free Savings Estimate

How much do you owe?

$100,000

$5,000
$100,000
Live Chat
Welcome to our Live Chat
Agents are not available at this time. Please leave a message. Thank you.
First Name
Last Name
Phone
Email
Postal Code
Debt Amount
 
PHP Live! powered