In Canada, Debt collectors are one of the businesses that receive the most complaints, according to the CBC News. Very few people have experienced positive encounter with debt collectors and even those rare occasions where consumers meet nice collectors could actually be a nuisance.
What is debt collection?
Debt collection is a kind of account where a third party collection agency Canada is hired to collect debts. Basically, they are the people who earn by collecting unpaid debts for other people. Usually, the company you owed will send your account to a collection agency after missing several payments. This has been the norm for most businesses because it is more effective to hire a company that does this service than to collect debts and spend valuable resources just to be able to pursue delinquent accounts.
While this has been done by many businesses, the policies vary according to circumstance. By reviewing your loan or credit card agreement, you will learn about the timeline of your creditor. The standard policy is that a borrower’s account will be transferred to the collection agency after non-payment of 180 days while other businesses send collection accounts to agencies when the borrower has missed 1-2 months of payment.
What to do when your account is transferred to a debt collector?
The job of debt collectors is to collect from you. They will call, send letters and reflect the collection on your credit report. When they know the phone number of your office, they will call you at work unless you will inform them that the calls are not approved by your employer. Some debt collectors even show up at the borrower’s home to collect the debt. You may think it is illegal, but surprisingly this is a legal action.
Typical collection agency Canada representatives are very annoying; they will call you a number of times each day, most especially when you do not answer the calls. You have to remember that they can call you from 8 a.m. to 9 p.m. of your local time only. What could be more annoying is when they cannot reach you, they will call your family, friends and neighbors to check if your contact information is correct. While they reach out to other people about your whereabouts, they are not allowed to disclose your debt and must only contact the same person once.
In addition, debt collectors will send bills to the address you stated when you applied for a loan. During the first notification, they will inform you that you only have 30 days to validate the debt and this can be relayed to you through a phone call. If they do not have your correct address, there is a big possibility that you will not receive a notice of debt. This case is similar when they do not have your correct phone number, so you may never know the account until you check your credit report.
Each year, thousands of complaints about debt collectors are listed because they do not abide by the laws that govern fair debt collection. However, hiring pleasant and reliable debt collectors who execute their roles in a pleasant, courteous, and compassionate manner like Francois Sauvageau, does bring forth a different story. So, the next time you get a call from a debt collector, be nice. The person on the other line may be one of those nice ones.