Debt collectors

From credit cards to payday loans, there are many ways to borrow money. When people get behind on payments, or fail to pay at all, creditors may hire a debt collection agency to help them get the money owed.

For information about collection agencies select from the options below.

 

• Ask for the licence number
• Know what you owe
• Debt repayment plan
• Frequently asked questions

 

Ask for the licence number

Debt collectors need a licence to operate in Saskatchewan. Agencies located outside the province may collect debts in Saskatchewan, but require a Saskatchewan Collection Agents licence to do so.
Sometimes, scammers will pose as debt collectors and try to intimidate their targets into paying fake debts. They often use high-pressure scare tactics to trick people into sending money before they can verify the debt is legitimate.

Before you make a payment, check to see if the person calling has a valid licence.

 

Know what you owe

Sometimes mistakes with paperwork are made. If you can prove you don’t owe a debt, you can save yourself a lot of time, grief, and money. Keep records of your financial transactions such as contracts, statements, and receipts. Something as simple as a box with file spacers is a useful tool for keeping your records organized.

Information about debts may be removed from your credit report six years after they were incurred (or after the last payment was made), but removing debt information does not mean the debt is forgiven.

 

If you have debt, make a repayment plan

Make a budget, record your income and your expenses, and follow a repayment plan. Some lenders are willing to negotiate on interest rates or the amount owing. It is worthwhile to ask for relief on both.

 

Frequently asked questions
 

1. What can a collection agent do to get my money?

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

3. The collection agent threatened to seize my belongings. Is this legal?

4. Are there any laws that govern collection agents?
 

1. What can a collection agent do to get my money?

A collection agent is one who acts for creditors. They can persuade you to pay or work out a payment plan. If you do not pay, the agent may be able  to sue you for the unpaid debt.

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

1. You will likely 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.

3. The collection agent threatened 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 paying the loan. The creditor does not have to sue before seizing the car.

4. 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, after 9:00 pm, on Sundays, or on 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 FCAA Consumer Protection Division at 1-877-880-5550 or consumerprotection@gov.sk.ca.