Not paying your debts, even for a little while, is serious. It can hurt you for years, damage your credit rating , affect your ability to get credit, stop you from getting a mortgage, and interfere with your enjoyment of life.

If you are being contacted by Collection Agencies and are in the Greater Toronto Area – it may be time for you to consult with the experts at David Sklar & Associates – call 416-498-9200 for a Free Consultation to explore your options.

Dealing with Your Creditors – Before it Goes to Collection

Missing even one payment to your creditors
can result in damage to your credit rating.

When you are dealing with your creditors – your attitude can make a major difference!

Establish a good rapport with your creditors by paying your bills on time – all the time.

If you are legitimately unable to make your full payments (ie job loss, injury, etc):

  • let your creditors know BEFORE you miss a full payment,
  • make sure you put something on your account, and
  • try to work out a repayment plan with your creditors that reflects your new situation.

If a creditor feels that their efforts to collect your debt have not been successful – they may turn your debt over to a Collection Agency. Your creditor will send you a letter of notification telling you how much of your debt has been turned over to which collection agency. From that point on – you will be dealing with the agency and not the creditor (unless there is a dispute about the bill itself – or if you believe, you have paid the bill).

Dealing with a Collection Agency

When your account is handed to a Collection Agency,
your credit rating has been seriously damaged.

If you honestly do not think you can pay the Collection Agency what you owe in a reasonable timeframe, your best option may be to speak with the experts at one of David Sklar & Associates’ five Greater Toronto offices. Book a Free, no obligation consultation - find out how we can help – 416-498-9200.

When you are dealing with a Collection Agency – your attitude can make a difference. However, you must remember that Collection Agencies tend to play hardball. Remember:

  • Do not ignore calls and mail from a Collection Agency.
  • Talk to the Agency – explain what is happening. If you need time to pay in full – discuss it with them. See if you can set up a repayment schedule that is acceptable to both you and the Agency. Pay some money up front to show them you are dealing in good faith. Do not make any verbal or written agreement that you cannot or will not honour.
  • Always pay Collection Agencies with something you can track – a non-bank money order or postal order – never, ever pay by cash. Try not to give them a cheque - which will give them banking information you may not want them to have.
  • Depending on their agreement with your creditor, Collection Agencies can either sue you directly, or recommend that your creditor take you to court.

Know Your Rights

To protect your rights - Collection Agencies in Ontario are governed by a number of Acts – most notably the “Collection Agencies Act”.

The following are just some of the Ontario rules for Collection Agencies – for exact guidelines and legislation – please visit the Ontario Ministry of Small Business and Consumer Services at http://www.sbe.gov.on.ca/ 

Collection Agencies:

  • cannot seize any of your assets without first having taken you to court and won a judgement to do so.
  • cannot be threatening, use swear words – or put unreasonable strain on you.
  • cannot lie to you or continue to harass you.
  • may only contact your employer once to get your employment information unless your employer has guaranteed your debt, or the call is about legal action (ie garnishee, court order, etc).
  • may only contact your family, friends, neighbours, and acquaintances once to get your address and phone number – unless they have guaranteed your loan or you have given permission for them to be contacted (most likely when you signed a contract).
  • must notify you in writing before they tell your creditor to begin legal action against you.

For more information on Collection Agency guidelines in Ontario visit the Ontario Ministry of Small Business and Consumer Services at http://www.gov.on.ca/

We Can Help

If you are unable to pay your debts and are being contacted by Collection Agencies – it is time to contact the experts at David Sklar & Associates for a Free Consultation. With five convenient offices in the Greater Toronto Area, we can help you sort out your best options for recovering your financial future. Call us at 416-498-9200, or get started with our Quick Assessment Form to book your Free Consultation. We are here to help.

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