We all have bad spending habits, which is why we get into debt in the first place. People have other responsibilities besides paying their bills, and when one falls behind on regular payments, debt collectors start following.
They will contact you and inform you that you owe the collectors money and that it must be paid as soon as possible. If you merely grasp how this all works and what the debt collector should and should not tell you, you will be well on your way to having your obligations paid off.
We all have at some point in our lives have been contacted by a debt collection agency and if you have not and you have fallen behind any of your recent payments, there are high chances of getting a call in the next few days.
Understanding how it all works and the laws for it or how long debt collectors can try to collect in Canada is very crucial for your own benefit.
What Is A Debt Collector?
A person whose job is to remind people who have fallen behind their regular payments and collect the due bills is called a debt collector. He will call people who have defaulted on their loans or credit card payments.
Yes, it is legal to collect debts, and your creditors or the companies you owe money to have a legal claim to it. However, it is against the law to harass to intimidate citizens for the sake of debt collection. Debt collectors find it common to harass citizens who do not know their rights and do not know that it is legally not allowed.
Now, it is important to know that whenever you get a notice from a debt collector that you will be brought to court, you must go for legal advice as soon as possible.
Debt collectors operate on the fear of you have lost all of your assets and property being seized by the creditors. This is not true for all cases. Legal advice can save you from all of the trouble.
What To Know About Debt Collection?
Debt collectors cannot contact you before 8 am in the morning or after 9 pm in the evening. This is your right and you can tell the debt collectors not to contact you at any time.
Debt collectors are prohibited from discussing your debt of any financial prospect with anyone else. In conditions if you have a lawyer, you can tell the debt collectors that your lawyer will speak for you, the debt collectors are required to contact the lawyers.
Another thing you must know is that debt collectors can call or contact anyone to reach but cannot contact you more than once.
How Do Reputable Debt Collectors Operate?
Some debt collecting agencies make use of your lack of knowledge and will engage in unethical activities. thus you must know your rights and legal boundaries that debt collectors cannot cross.
Reputable debt collection agencies work in a professional way and they usually send out letters to your address informing you about your debts. Everything is organized and works smoothly in a professional debt collection agency. They will not harass you or tease you or call you over and over again making your life miserable.
Collectors are required to inform you that you have 30 days to submit a written challenge and they must provide you with the proper name and address of the original creditor if you want it.
Wrapping It Up
Debt collectors will go to any length to contact you and alert you of your outstanding bills. They will write you letters, phone calls, and perhaps pay you a visit at your home.
Some collectors may take advantage of your fear of losing everything and harass you in various ways to ensure that you pay your repayments on time, but this is not allowed.
Debt collectors are supposed to notify you if there will be legal action taken against you or if there is any other major issue.
If you do not pay or fail to make the pay back on time, the debt collectors have the right and the obligation to take legal action against you. If you are working on a debt relief program, you must notify them as soon as feasible.