There are very strict rules about what debt collectors in Ontario are allowed to do, but if you’ve ever had bills or debts go to collection, you know that not all debt collectors play fair.
These are just some of the rules debt collectors in Ontario have to follow:
- They must send written notice by regular mail before contacting you, including the amount of money you owe
- They may not contact you more than 3 times in a 7-day period
- They must follow strict time constraints for contacting you, such as no contact between 9 p.m. and 7 a.m., or on Sunday except between 1 p.m. and 5 p.m.
- They may not threaten or intimidate you, use profane language, or harass you
Debt collectors enter the picture when you’re overdue paying a debt.
Often it’s a credit card company or a large bill (for example, a dentist typically waits about 3 months before outsourcing a bill to a debt collector). Collectors are either hired to collect the debt on behalf of the company or business you owe or they may buy the debt outright. Even when collectors follow the rules, the letters and calls are stressful and disruptive to your family life and your career.
In one case recently handled at David Sklar & Associates debt collectors nearly jeopardized our client’s attempts to get back on track. In this case, Paul (not his real name) was earning $85,000 as a computer hardware engineer and supporting his wife and three children in Toronto when the company closed down.
Highly specialized and in an industry with a surplus of similarly-qualified professionals, it took Paul two years to find a new job, during which time the family borrowed heavily, even while Paul’s wife Nancy worked a part-time job. When Paul finally did get back to work, his credit card bills had gone into collection – and they started calling the office.
The calls were so frequent (the family had maxed out 6 different credit cards) that Paul worried they would affect his job performance and cost him his new job – until he filed for a consumer proposal.
If you find yourself in a similar situation, you can get relief by calling David Sklar & Associates. As soon as you file for a consumer proposal, collectors must stop contacting you. Long before a final agreement to settle your debts is made, you can get relief from collectors. Debt collectors can cause a lot of stress, but experts in consumer proposals can provide fast relief.
It’s not just relief from debt collectors that a consumer proposal offers. It will also put a stop to legal action against you such as a frozen bank account or wage garnishment.
When you’re insolvent, you will have to consider a consumer proposal vs bankruptcy but Licensed Insolvency Trustees can help you decide the best path to debt freedom. Much depends on your financial situation and the size of your debts.
Visit any David Sklar & Associates location for a free consultation. With our help, you can stop collection calls and find a way out of debt.
