Problems with collection agencies

What can a collection agent do to get my money?

A collection agent has almost the same power as other creditors. They can persuade you to pay or work out a payment plan. If you do not pay, the agent can sue you for the unpaid debt.

The collection agent is going to sue me. What will happen?

1. You will receive a letter giving notice of the debt and stating that if you do not pay by a certain date, you will be sued in court. This is called a demand letter.  
2. You will be served with a Statement of Claim that explains the reasons you are being sued, the amount of money or remedy sought and what you may do in response to the claim.
3. If you are sued in small claims court, you have the chance to tell the judge your side of the story. The judge then decides if you must pay the collection agent.

The collection agent says he is going to seize my belongings. Is this legal?

A collection agent cannot garnish your wages or seize your property without beginning a court action. The only exception is property given as security for a debt. For example, if you buy a car and use the car as security for a loan, the creditor may seize the car if you default on payment of the loan. The creditor does not have to sue before seizing the car.

Are there any laws that govern collection agents?

Yes. It is against the law for a collection agent to:

• harass you, your spouse or family;
• harass your employer or threaten to do so;
• harass your friends to find out where you live or work;
• try to collect more than the amount owing;
• call you before 8:00 am or after 9:00 pm and on Sundays and holidays;
• make a demand for payment without indicating the name of the creditor, the balance owing and the identity or authority of the person making the demand;
• make a telephone call with reversed charges;
• send documents that appear to be court documents; and
• start or continue a court action in the name of the collection agency unless the debt has been assigned to the collection agency in writing and the debtor knows about the assignment.

If you feel a collection agent is harassing you, contact the Consumer Protection Division at (306) 787-5550 or 1-877-880-5550 (toll free).