Don Allen - Bankruptcy Trustee & Receiver
Trustee & Receiver
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Collection Agencies

Collection agencies are hired by credit card companies and other creditors to collect money from you. They are often paid a commission for every dollar they collect, so they will keep calling and sending letters as long as they believe there is a chance to collect the money from you.

Strategies for managing collection agents:

  • Don't ignore collection agency phone calls or letters. Ignoring calls can lead to legal action including a wage garnishment – that will damage your reputation at work.
  • Treat collection agents the same way you like to be treated – in a forthright and professional manner
  • Don't be bullied into making commitments you know you can't keep.
  • Keep the commitments you do make, but if you can't keep the commitments, make sure you explain the reasons to the collection agent and write down the details of the discussion for your records.
  • Be sure you owe the debt. Ask for a written, detailed notice from the collection agency if you have questions about a debt. Advise the collection agency you will not pay unless they can prove that you owe the money.

Rules collection agencies must follow:

  • You must be notified in writing. When a company gives your overdue account to a collection agency they must contact you at your last known address. Remember, it is your responsibility to make sure your creditors know when your address changes.
  • Collection agents are not allowed to harass you or your family. If you believe a collection agency is harassing you, keep a record of the time, date and frequency of the calls. This information is required if you decide to make a formal complaint against the collection agency.
  • Collection agencies may not call you on statutory holidays; Sunday except, between 1:00 and 5:00 pm or any day before 7 am or after 9 p.m.
  • Collection agencies are not allowed to contact your friends, relatives, neighbours or employer for any information other than your address or telephone number.
  • Collection agencies are not allowed to call you if the call results in a cost to you. For example, collectors cannot call your mobile phone if you have to pay for incoming calls.

For more information about collection agencies download these resources:

If your debt problems have become too big to cope with on your own and you are not sure about your options for managing your debt, contact us and we can help you.

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