Collection Call Basics
Collection Call Basics
Constant calls from creditors can be overwhelming. The worry caused by threatening phone calls and demanding notices can push you to the breaking point. If you’ve been trying to cope with aggressive collection efforts, here are a few ideas to help you deal with the stress.
Know Your Rights
Sir Francis Bacon said, “Knowledge is power,” and that’s true when it comes to dealing with debt collectors. Although you may have been late or even missed payments, you have rights. Understanding what a collection agency can and can’t do empowers you, making it easier for you to deal with their tactics.
By law, collectors are not allowed to:
- communicate information about the debt or the existence of the debt with any person except the debtor, a guarantor of the debt, the debtor’s representative or the creditor of the debt unless the debtor has expressly consented to the communication
- call before 7:00 am or after 10:00 pm
- directly or indirectly threaten or state an intention to proceed with any action for which the collection agency or the collector does not have the prior express consent of the creditor or for which there is no lawful authority
- contact the debtor’s employer for any purpose other than to confirm the debtor’s employment status, business title and the address of the business, in preparation for legal proceedings
- contact a debtor’s spouse or adult interdependent partner, relative, neighbour, friend or acquaintance unless the contact is limited to the purpose of obtaining the debtor’s residential address, personal telephone number or employment telephone number
- charge more than is owed to the creditor, excluding a reasonable fee for a dishonoured cheque, if the fee was disclosed to the debtor in writing prior to the submission of the cheque
- pretend to be someone they are not
- charge you phone or mailing costs
Collection laws may vary a bit from province to province, but all Canadians are protected from unfair collection practices. You can familiarize yourself with the collection laws for your province by visiting your local government’s website.
Get Your Budget and Spending Under Control
Collection calls can be a constant reminder that you have lost control of your spending or abandoned your budget. You can lessen the stress you feel by reviewing your budget and building a plan to get your spending back on track. This plan might include cutting expenses, setting up payment plans with creditors, or adjusting spending habits.
Make a visual reminder of your plan, a chart or poster that will keep progress towards your goals in sight.
Look for Ways to Relax
Money problems can fill your mind, leaving little room for maintaining relationships with family and friends. Make time for those who mean the most to you—discussing your worries with a trusted friend can go a long way toward relieving the pressure you feel.
Get professional help
Consulting with a Bromwich+Smith Debt Relief Specialist can help you deal with creditors. We can offer you legal options that stop stressful collection efforts and provide you with the tools and advice you need to get your finances in order.
Bromwich+Smith offers a free consultation, and time spent discussing your concerns with a trustee can give you new insight into handling your debt problems.
Don’t let pressure from creditors make your life miserable. Seek the support of friends, family and the financial professionals at Bromwich+Smith. Rebuild your worth today.