Many Albertans are facing the problem of significant debt and are hearing from debt collection agencies regularly. Fortunately, you enjoy several protections from unscrupulous debt collectors. The Fair Trading Act and the Collection and Debt Repayment Practices Regulation grant these protections.
First, these laws keep you from suffering embarrassment because they limit what debt collectors can discuss about you and your debt. Debt collectors can contact friends, relatives and employers to obtain your current contact information but they cannot give details about what you owe. Collection agencies can also contact your employer to verify your employment.
Second, these laws limit debt collection contact hours to between 7 a.m. and 10 p.m. This keeps collection agencies from wearing you down and getting you to sign an agreement that does not benefit you (a common strategy they use).
Most importantly, debt collection laws protect you from misleading settlements. Alberta debt settlement is popular with those who are deep in debt because it reduces the principal you owe to your creditors. Essentially, much of your debt is written off, eliminating a good portion of your debt burden. A debt settlement is better than personal bankruptcy because it does not ruin your credit (although it DOES damage it), and it is better than debt consolidation because your principal balance is reduced and not just your interest rate. A debt settlement will also allow you to get out of debt faster than debt consolidation by reducing what you owe by up to 60% (sometimes more!).
Unfortunately, however, many collection agencies in the past offered settlements to debtors that were not approved by creditors, and many people have been tricked into thinking their debt burden was gone. Current debt collection laws prohibit such practices.
In any case, an Alberta debt settlement may be the best choice for you if you are struggling with debt. But you should never pursue a debt settlement in Alberta without understanding all of your options with the help of a professional third party. Fill out the online debt relief application for professional assistance with debt relief options.
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