Articles
Debt validation to fight against unauthentic debt collectors
Getting constant nagging calls from collection agencies at your workplace or home can be bothersome and frustrating. Sometimes it may compel you to give up. Even if you make your mind and decide to take action, there are some facts you have to know as far as negotiating with debt collectors is concerned.
All the collection agencies in Canada have to be registered with the Collection Agencies Act. Any agency that is not governed by this act is not authentic and therefore has no right to get in touch with you or collect dues from you. The Collection Agencies Act was passed to protect the rights of both consumers as well as creditors and ensure fair functioning of collection agencies.
The following points will give you a clearer idea of rules laid out by the Collection Agencies Act and enforced by the Business Practices and Consumer Protection Authority (BPCPA).
- The collection agency cannot call you for at least six days after sending you the notice.
- If you have replied to their notice and requested only written communication, then the collection agency has no right to harass you by calling you again and again.
- You have every right to challenge the authenticity of the collection agency. In addition, the notice sent by the collection agency has to have the name of your original creditor, the amount of the debt and proof of the agency’s authenticity to collect payment from you.
- If you dispute the claim of the collection agency in writing, it is the duty of the agency to prove that you owe them the money. If they fail to prove this, then you have a right to file a lawsuit against them.
- The collection agency cannot use threatening, derogatory or abusive language while talking to you.
- The collection agency cannot get in touch with your employer, unless he is the guarantor for the loan taken by you or the agency requires your employment information.
- You have every right to demand the collection agency to procure the original papers signed by you and the original creditor. In addition, legal proof stating that you are now entitled to pay the agency and not the original creditor.
Remember:
- A fraudulent collection agency will continue to harass you with phone calls, even if you send the notice that you are interested only in written communication. It is your responsibility to file a compliant against them with the Business Practices and Consumer Protection Authority (BPCPA).
- If you are challenging the claim of the collection agency, and if the agency is unable to procure proof of its authenticity, then by all it is the responsibility of the agency to remove details of that account from your credit file. Failing to which, you are entitled to take legal action against them.
- Sometimes the agencies may even file a claim against you. If you ignore it then they can get the advantage of default judgment. They often use this technique to forcefully collect the money from you. Instead of panicking or ignoring their claim, file a counter-claim within two weeks.
- Debt validation is a weapon only against unscrupulous debt collectors, and not a technique to get out of paying what you owe. Don’t think that with debt validation you can be scot-free and you won’t have to pay your outstanding dues. Debt validation is only a fair verification of the genuineness of the collection agency.
- Seek professional help if you are confused. Expert advice can really help you come out of your financial glitch faster and efficiently. Don’t be ashamed to ask for help. And by all means, do not hesitate to exercise your rights.
