Collectors may contact borrowers who are unable to make payments or if the records of financial institutions mistakenly show they are. However, even if you cannot keep up with payments, the use of unfair, deceptive, and abuse practices is not allowed.
In terms of what collectors are not allowed, they cannot contact debtors at inconvenient places and times. For example, they cannot contact you after 9 pm or before 7 am unless you have agreed to this arrangement. You can let collectors know that you prefer not to be contacted at your work place.
Collectors should not contact the debtor’s friends, relatives, or other third parties more than once. Moreover, they may contact them only to ask about your workplace, phone number, or address. If you use the services of an attorney who represents you regarding debt, collectors should contact him and not you. Collection agencies may contact third parties only if you don’t have an attorney. Apart from inquiring about your whereabouts, collectors are not allowed to discuss your financial situation with anyone, except your attorney, you, and your spouse.
Certain practices are definitely off limits for debt collectors, including using threats of harm and violence, calling debtors to annoy them, using profane and obscene language, and publishing the names of debtors who are unable or refuse to pay off their debts. False statements are prohibited as well. Examples include falsely claiming that they are government representatives or attorneys, misrepresenting the amount borrowers owe, and falsely claiming that the debtor has committed a crime.
Harassment is not allowed. Collection agencies cannot use intimidating, coercive, or threatening language. Collectors are prohibited from using unreasonable, excessive, or undue pressure on debtors too. They cannot directly or indirectly threaten or state an intention to initiate legal action when there is no legal authority to decide on the matter. They cannot proceed with legal action in case they do not have the creditor’s written permission.
Attempting to collect from persons who do not have debts is not allowed. The collection agency should make sure that the person in question is really a debtor before contacting them.
Collectors are not allowed to use documents such as notice or summons or demand, which imply a connection with a court or another formal institution on the territory of Canada or abroad. They should not misrepresent the identity of the creditor or the collection agency as well.
Finally, collectors should inform debtors in writing before attempting to collect. They have to make a reasonable attempt to contact and inform the debtor of the financial institutions with which debts have been incurred. The debtor should be notified of the identity and authority of the parties that seek debt repayment.