Debt collectors and creditors in Canada often utilize hard line strategies to pursue consumers, occasionally being successful at reeling payments when there was nothing owed at all.
From regular phone calls to threatening tone and language, approaching friends and family members and contacting late night or early morning – these practices can fall into the category of illegal behaviour.
Generally, debt collector is a person who collects debts as his/her profession for creditors against a fee. However, this position doesn’t authorize them to collect debt in every possible way. Keep reading below to learn about your rights and what creditors/debt collectors cannot do, under the law.
Harassment Is Prohibited
Under the law, any entity collecting debt—be it debt collectors or creditors, are not allowed to interact or try to communicate with the debtor and his/her family, friends, employers, colleagues etc in a harassing manner. According to the Business Practices and Consumer Protection Act, harassment comprises:
- Utilization of a language that’s hostile or intimidating,
- Application of extreme or irrational pressure,
- Publish or attempt to publish the debtor’s inability to pay debt.
Intimidation is Prohibited
By law, the creditor or debt collector cannot attempt to communicate with you, your family, friends and employer in a manner that’s distressing, alarming and humiliating. For instance, they can’t keep calling you after every 15 minutes demanding the repayment of loan.
Communication with Your Employer
Creditors and debt collectors can contact your employers, but can only do so to authenticate your employment, nothing else. This means that they have no right to harass or intimidate your employer. Moreover, they are forbidden to jeopardize your reputation before your boss, encouraging him or her to fire you because you’re loaded with debts.
However, your creditor has a right to demand for payments where you work (in case you’re not available at home or aren’t responding).
You cannot be misled
Remember, your creditors or debt collectors cannot utilize documentations and forms that are deceptively sourced from a legal or governmental office.
For instance, they cannot send you a letter by mail asking for payments in the shape of ‘Court Summon’. That’s because it may mislead you into believing that you have received orders from the court to make the payment.
As you exercise your rights, it’s vital to not let your creditors take advantage of your financial crisis. Make way to EmpireOne where we provide you with professional and experienced credit and debt counselling in Toronto, Whitby and Mississauga via our expert credit and bankruptcy consultants. Pick up your phone and call (416)900-2324 to attain financial help.