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How to Handle Debt Collectors in Canada

How to Handle Debt Collectors in Canada

Nobody wants to be in debt or find themselves in arrears so Hamilton debt collectors come calling. Yet more Canadians than ever are finding themselves in situations like this, often through no fault of their own.


That’s why we put this blog post together. Our Hamilton auto loans team outlines how to deal with debt collectors and what you can do to rescue the situation.


What should you do when a debt collector calls?


It’s very tempting to ignore calls you suspect are from debt collectors but you shouldn’t. We recommend answering the call, letting the debt collector outline what you owe, who you owe it to and outline your options.


Ask them for time to verify you owe that amount and be prepared to work with them to come to a solution.


There’s no point ignoring debt collectors. They don’t give up. They are much more willing to work with you if you work with them.


When and how Often can Hamilton Debt Collectors Call?


Debt collection in Canada is regulated and they are only allowed to contact you within certain limitations.


They can call Monday through Saturday between 7am and 9pn and Sundays between 1pm and 5pm.


They cannot contact you more than three times in any one week because of the ‘three strikes’ rule in Ontario. Those three strikes include emails, letters, calls and visits.


Is there statute of limitations on debt?


Unfortunately, there isn’t a statute of limitations on debt but there is a legal limit of 2 years for a debt collector to sue you for that debt.


Other provinces vary but Ontario has a 2 year limit. That means a debt collector has just 24 months to try to get you to pay. That doesn’t mean you should avoid them for that time, it just means old debts should no longer haunt you after that time.


A debt collector called by boss, is that allowed?


Unfortunately, it is allowed. However, they are only permitted to contact friends, family and employers to find out your contact details or verify employment.


They are not permitted to discuss your debt in any way with any third party. The only exception to this is for auto loan co-signers or legal guardians.


I paid the debt they are trying to collect, what do I do?


If you have already paid the debt to the original creditor, you’ll need to prove it to the debt collector. This happens when there is a crossover between the time the original creditor sold the debt to the collection agency and when you paid it off.


Just tell the debt collector it is paid, provide documentary evidence of that payment and things should quickly be sorted out.


I don’t owe anything but I’m being contacted by debt collectors


Mistakes happen, especially if you have a popular name or have just moved into a new home. In this case, all you have to do is tell the debt collector they have the wrong person. Explain that you just moved in or that you have never owed money and that should be the end of it.


Technically, once you tell the debt collector, they should stop calling. If they persist, file a complaint with your consumer protection office.


When you’re ready for a car lease or loan, get in touch with the Hamilton auto loan experts at Northway Ford for great deals on auto finance.


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