Monthly Archives: April 2012

Helping Your Members/Clients Cope with Collection Agencies

Many people have collections debt in Canada. We work very hard to help organizations to educate their clients/members about how to cope with collection agencies through educating them about their rights.

Loans, credit card balances, utilities, phone bills, gym memberships, toll bills and traffic fines are all examples of debt that may be assigned to collection agencies to be collected. Some collection agencies will use aggressive tactics to collect debts.

The good news is collection agencies in Canada are regulated in most Provinces. This means your clients/members have rights! In Ontario for example, the Ministry of Consumer Services regulates collection agencies through the administration of the “Collection Agencies Act”. Your clients/members can view the Ontario Collection Agencies Act on the E-Laws website. If a collections debt in Canada has been incurred and a collection agency is getting out of hand, your client/member can complain to the Provincial Ministry that regulates it. Some Provinces will receive online complaints (as is the case in Ontario) while others will require that a letter be mailed to them which includes evidence to support the complaint.

If your client/member is being pursued by a collection agency in Canada, it is likely because he or she is dealing poorly with debt. Rather than facing collection action, it is better to come up with a solution to deal with the debt, and there are solutions available. There are a number of programs available that help people to deal with their debt and stop collection action. Dealing with debt can cause stress and strain to relationships and many people think that the only way to get out of debt is through personal bankruptcy. This is not the case. There are other solutions to dealing with debt that involve freezing the interest accumulating on debt and also reducing the principal amount of debt owed.

When facing debt the worst thing to do is ignore it. This will only prolong the length of time that credit is damaged and the debt will not go away but will only continue to grow over time. The faster your clients/members deal with their debt, the faster they can work towards rebuilding their credit and finances and put the period in their life where their debt got out of control behind them.

If you would like to organize a WeCare day at your organization to provide your clients/members with important information about dealing with collection agencies and debt, please reach out to me by emailing kgoldenberg@debtcare.ca, calling 416-907-2582 ext 2587 or visit www.debtcareservices.ca.