Prohibited Practices and Methods in the Collection of Debts
In June of 2006, Collection Agencies were regulated under a new Act bringing into effect restrictions on specific tactics used by companies contracted to collect past due debts. Familiarize yourself with the summary of the Act, to know your rights and the rights of the collection agency.
Commencing in June 2006, Collection Agencies were regulated under a new Act that came into effect that disallows some practices collection agencies use. For reference, a brief description of the legislature which prohibits practices as prohibted by governing authorities follows:
In June of 2006, Collection Agencies were regulated under a new Act bringing into effect restrictions on specific tactics used by the collection companies. Familiarize yourself with the summary of the Act, to know your rights and the rights of the collection agency.
Collection agencies are now restricted and not allowed to perform the following acts:
- They may not send the person who owes payment a written notice that has the following information: Their name, the balance a debtor owes, the identity of the collection company, or the ability of the company to collect and demand a payment from a person.
- Continue to contact the debtor if the debtor has not received notice of the collection. If a second copy is sent from information that the person owing the debt has given, then contact can be made after six days of receipt of the second notice.
- If the debtor sends the collector - or the debtor's lawyer send the collector, a registered letter telling the collector to take the debt to court, contact by the collector cannot be made.
- If the debtor send the collector - or the debtor's lawyer send the collector, a registered letter saying all communication must go through the debtors lawyer, the collector cannot contact the debtor.
- The collector may only contact the debtor between 1 and 5 pm. on Sundays and may not contact the debtor on holidays.
- May not contact a debtor only between the hours of 9 p.m. and 7 a.m.
- May not contact a debtor the day following a holiday.
- May not contact the debtor more than three days from a given period, aside from ordinary mail without the permission of the debtor.
- May not threaten, intimidate, the debtor or use coercive or profane language.
- May not be unreasonable with the debtor or pressure the debtor.
- May not threaten the debtor by publishing their debt information or the individual's defaulting to pay the owed debt.
- May not collect the debt from anyone other than the debtor.
- May not continue to contact a person if they are informed that the debtor does not live there.
- May not mislead the debtor by giving incorrect or deceiving information.
- May not recommend commence legal action without having sent notice to the person who owes the debt.
- May not threaten the debtor with legal action without having prior written authority to the creditor to take the legal action.
- May not contact the debtor's place of employment more than once to gather employment information. One exception is when the employer guarantees the debt.
The only communication or contact a collector may have with a spouse or other family member is to obtain information on the whereabouts of the debtor.