Q: I owe money to various companies and my farming income hasn’t been enough to pay them. Now I’m being hassled by collection agents. My spouse and kids are being phoned at work and these collectors are making life miserable. What can I do?
A: The stress from owing money is huge and damaging. It is aggravated when creditors start being aggressive in their collection efforts.
Collection agents are regulated by provincial law, so what they can legally do depends on where you live.
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Most collection agents use legal means to do their job, which is collecting money that you owe.
Some, however, stretch or break the law and you are within your rights to guard yourself against such tactics.
Consult with a lawyer as to what is allowable. Alternatively, contact the equivalent of the consumer affairs branch of your provincial government to find out what restrictions apply to agents.
Collectors have to be licensed to carry on their trade and making inquiries with the licensing agency is a good place to start. A person who is not licensed to be a collector cannot carry on this activity.
Restrictions on collection agents are based on common sense. They are limited in the frequency and type of telephone calls or contacts they can make. They are not supposed to yell and scream at you, and are restricted in the number of times they can contact you in a given day or week.
For example, in Saskatchewan, collectors cannot phone on a Sunday or holiday and on other days it must be between 8 a.m. and 9 p.m. If your collector is breaking these rules, you should complain.
They cannot call collect or send you mail with postage owing. They are not supposed to contact your employer or take any action that could jeopardize your job. Further, they are not even supposed to threaten to do these things.
Collection agents are banned from giving false information to anyone, including you. This includes giving you wrong statements about what will happen if you don’t pay, which used to be a favourite tactic. They also cannot pretend to be an official, such as a sheriff, to scare you into paying.
Collection agents are also supposed to be bonded, so that if they do something wrong you have a means of redress. If they’ve broken the rules and caused you some loss or damage, you can complain and collect against the bond.
The licensing agencies of provincial governments have powers of investigation and review so if a collector is taking liberties with the rules, he may find his licence in peril of being revoked.
In addition to protecting yourself against unscrupulous collection agents, you need to ensure your own health is protected. Many provinces have farm debt lines, where you can phone to get assistance in dealing with your debts or in dealing with the stress arising from having a debt load you cannot pay. You may want to consult with a licensed trustee in bankruptcy, because there are many options short of full bankruptcy to deal with debts.
Remember that if you really owe the money, there is nothing prohibiting your creditor from taking legal measures to collect it. This includes the proper use of licensed, reputable collection agents. Often, communication is the key to dealing with the issue.
Rick Danyliuk is a practising lawyer in Saskatoon with McDougall Gauley LLP. He also has experience in teaching and writing about legal issues. His columns are intended as general advice only. Individuals are encouraged to seek other opinions and/or personal counsel when dealing with legal matters.
