Have you ever wondered how a collection agency obtained your contact information? When a consumer has an account with a business that is “past due” or in default, the business may turn the account over to a collection agency. From that point, the collection agency can contact you to collect on an unpaid debt.

An increasing number of collection agencies, sometimes referred to as “debt buyers”, purchase debts from creditors for a percentage of the value of the debt and pursue the debtor for the full balance, sometimes plus “interest”.

Debt collectors who work on commission may be highly motivated to convince debtors to pay the debt. Some collectors may practice aggressive fear tactics, such as threats, to convince the debtor to pay their debt.

The United States is facing an epidemic of unscrupulous debt collectors who pose as law enforcement, threatening their victims with jail time unless they pay bills for things they never bought. Just recently a criminal complaint was filed Tuesday against employees at Williams Scott & Associates LLC, based in Norcross, Georgia. The alleged thieves posed as debt collectors and local law enforcement, conning 6,000 people of out more than $4 million in recent years, authorities said. Victims were tricked into believing they’d committed a crime such as fraud — then bullied into paying up bogus debts or going to jail, authorities said. Experts warned that more fraudsters are on the loose — and that federal authorities are cracking down.

Legitimate debt collectors in the United States and at home here in Canada must adhere to regulations covering behaviour and ethics. In Canada, the Office of Consumer Affairs enforces specific rules that vary from one province or territory to another. To see the specific rules that apply to collection agencies in your province, click here.

Generally, the first step a collection agency must take is to send you a written notice through the mail (email doesn’t count). This notice must include:

• the name of the creditor (the person or business that says you owe them money);
• the amount the creditor says you owe; and
• The name of the collection agency and its authority to demand payment on behalf of the creditor.

After sending the notice, the agency must wait six days before it can contact you in person or by phone.

If you are contacted by a collection agency, understand your consumer rights and make sure the collector is legitimate as well as the debts in question. Here are some tips to consider:

• You must be notified in writing that your file has been given to a collection agency. Don’t panic. The agency is trying to recover the money you owe its client.
• If possible, pay the amount you owe.
• If you are unable to pay it all at once, contact the agency and explain.
• If you reach an agreement with the agency, get it in writing.
• If you cannot pay the debt, contact a reputable debt relief company that can assist in negotiation with the collection agency. For more about debt relief, visit www.occa.ca.
• Never send cash. Make sure that you obtain a receipt for your payment from the agency.

I have collection agencies calling me daily. Can OCCA Consumer Debt Relief stop the harassing telephone calls?
Once you become a member with OCCA Consumer Debt Relief we will contact your creditors immediately, and let them know we now represent you; requesting all oral and written correspondence be directed through our office.

Keep in mind, debt collectors are merely following the direction of their client (the creditor). It’s just a job for them, and one that can pay them a sizable commission or bonus if they get you to pay any amount. So, why wouldn’t they call you repeatedly for money?

OCCA Consumer Debt Relief will help you get through and past the harassment, relieving the pressure of collection calls and helping you move on with your life.

For more information visit out blog for the following useful articles:

How to Deal with Collection Agencies (Part 1)

How to Deal with Collection Agencies (Part 2)

How Collection Agencies Collect on Debt

Collection Agencies Scare Tactics to Collect on Debt

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