How to Stop Debt Collectors From Calling, Harassing and Taking Payments

How can you stop debt collectors from calling?

You know your bills are out of control. You’re just not sure what to do about it.

How can you stop the calls when you don’t have the money they’re demanding?

When you are in debt, you may be overwhelmed by relentless contact attempts from debt collectors. Whether it’s non-stop calls to your home, harassment at work, or threatening messages, these collection practices can stress you out. But, you do not have to face this issue alone. There are legal protections and solutions like Consumer Proposals to help you stop bill collectors.

How can you stop debt collectors from calling? Here’s everything you need to know:

Know Your Rights Against Debt Collectors / Bill Collectors

First things first, it’s important to understand your rights. Debt collectors must operate within strict rules under Ontario debt collection laws and similar regulations across Canada. These laws are designed to protect consumers from aggressive and unethical collection tactics. Here are some key rules you should know:

• Limits on contact: Collection services and agencies are not allowed to call you at unreasonable hours. In Ontario, they’re not allowed to contact you before 7 a.m. or after 9 p.m. on weekdays or before 1 p.m. and after 5 p.m. on Sundays. In addition, debt collectors cannot contact you on holidays.1
• Workplace harassment is against the law: A debt collection agency cannot harass you at work or contact your employer, except when the agency wants to confirm employment or enforce a wage garnishment.
• Written validation: Creditors must provide written proof of debt, including the amount owed and the name of the original creditor.
• Stopping contact requests: You can request that a collection agency communicate only in writing. Once notified, they must comply.

Steps to Stop Debt Collectors From Calling

Even when you understand your rights, dealing with debt collectors in real life can be anxiety-inducing and frustrating. Thankfully, there are practical steps you can take to assert and protect those rights:

• Verify your debt: Confirm that the debt collected is valid. Ask the debt recovery agency for a written validation notice that continues all lawfully required details.
• Check the statute of limitations: If your debt exceeds the limitation period and you have not acknowledged it or made payments, you may not be legally bound to pay.
• Write to stop harassment: Correspond with the collection agency and ask that all communication be restricted to letters. Send your request by registered mail so you have proof of receipt.
• Get professional help: If the collection calls continue after you’ve asked them to stop, contact a Licensed Insolvency Trustee (LIT) who can help you deal with creditors.

Consumer Proposals: An Effective Way to Stop Collection Calls

One of the best ways to stop debt collectors is with a Consumer Proposal. This legally binding agreement, filed with the help of a Licensed Insolvency Trustee, allows you to negotiate reduced debt payments and stops all collection actions.

How Consumer Proposals work:

First, you propose a repayment plan to your creditors based on what you can afford. Then, your debts are combined into one affordable payment and no further interest is charged on the proposed amount.

In addition, a Consumer Proposal gives you immediate protection from creditors. Once the Consumer Proposal is accepted, all collections must stop, including calls, wage garnishments, and legal actions.

A Consumer Proposal will affect your credit rating, though not as drastically as a Bankruptcy, and you may retain assets like your car or home.

Other Debt Management Options

If a Consumer Proposal doesn’t fit your specific circumstances, consider the following options:

• Debt consolidation: A debt consolidation loan combines many debts into a single loan with lower interest. This will make your debt easier to repay and save you from the overall cost of the debt.
• Repayment plans: Negotiate directly with creditors for longer payment terms or lower interest rates.
• Credit counselling: Work out an individualized debt management plan by consulting a certified Credit Counsellor.
• Bankruptcy: You can file for legal protection and eliminate most unsecured debts, but this comes with consequences. For instance, car repossession may occur if you file for Bankruptcy to get rid of your debts. Consult a Licensed Insolvency Trustee to understand all the implications.

Protecting Your Credit Score

Unpaid debts and debt collection can significantly hurt your credit rating. While it’s essential to manage your debt, here are tips to protect your credit score:

• Make partial payments: Even small payments show good faith to creditors.
• Dispute errors: Regularly check your credit report and dispute errors.
• Use debt management plans: These programs help you pay debts without severely damaging your credit score.

How to Deal With Harassment at Work and Home

Harassment from debt collectors is not only stressful but often illegal. If you are receiving excessive or inappropriate collection calls, here are some steps to take:

• Document incidents: Keep records of dates, times, and the conversations you had.
• File a complaint: Report aggressive behaviour or threats to your provincial consumer protection office.
• Find support: If harassment continues, contact an LIT who can provide professional help.

Dealing With International Debt Collection

Working with overseas agencies raises further challenges. However, international collections are subject to the same or similar laws as those attempting to contact individuals residing in Canada. If you receive international collection calls, consult a Licensed Insolvency Trustee familiar with cross-border collection claims.

What to Know About Debt Collectors

When dealing with debt collectors, it’s important to understand what they can and cannot do to protect yourself from unfair practices. For example, they can’t take your assets without notice. A collection agency must get a court order in order to impound your car or garnish wages. Debt Collectors also can’t threaten you, and any threats of violence should be immediately reported. Additionally, debts aren’t all equal—certain debts like government loans or child support may be treated differently when it comes to collecting. Keep these factors in mind when you receive a collection call.

How a Licensed Insolvency Trustee Can Help

A Licensed Insolvency Trustee (LIT) is a federally regulated professional. Here’s how they can assist:

• Debt analysis: The LIT will thoroughly review and advise on your financial situation.
• Personalized solution: The LIT will give you recommendations based on your needs, whether via a Consumer Proposal, Bankruptcy, or other debt management plans.
• Legal protection: Debt collections will be immediately stopped after filing a Consumer Proposal or Bankruptcy.

Get Professional Help

If you are facing relentless collection calls, harassment, or piling up debts, bear in mind that you have rights and options, like Consumer Proposals. Licensed Insolvency Trustees can help you stop debt collectors from calling and regain financial control. Reach out to Adamson & Associates to book a free, no-obligation consultation.