Debt Collection Agencies

When you owe money to a Calgary company, it is a good idea to deal with the collection agency directly. A collection agency isn’t an automatic sweeper. They have to actively work to recover outstanding debt from debtors. If they don’t actively pursue debtors they won’t get paid! Debt collection agencies generally are classified as either state or federal based.

How To Deal with the Collection agency?

●    Laws and regulations

Federal debt collection agency laws and regulations are more restrictive. According to these regulations, debt collection agencies may only contact third parties for collection matters. They may not call creditors directly. Neither may they promise specific payment amounts or take money for processing fees.

  • Lenders

When considering debt collection agencies in Calgary, it’s important to remember that not all of them use ethical practices. Collection agencies may use unsavory tactics to pressure people into paying their debts. Collection agencies can target anyone – even if you’ve settled your debt with your lender. In addition, collection agencies use unscrupulous tactics to obtain the funds they are after. If you are contacted by a debt collection agency in Calgary, it is important to seek legal advice to protect yourself.

●    Federal Trade Commission

The Federal Trade Commission, Better Business Bureau and the Federal Trade Commission’s Consumer Protection Division all prohibit debt collection agencies from harassing people. There is also the Truth in Lending Act (TILA), which regulates how debt collection agencies may collect outstanding debt from consumers. This act requires agencies to provide the consumer with accurate and correct information about the process and give consumers the opportunity to opt out of debt collection agency contact. Collection agencies may not harass or threaten anyone under the TILA.

Although the laws regarding debt collection agencies in Calgary are different than those in most other cities, there are some similarities. For example, most debt collection agencies in Calgary require a consumer to first send a written notice of an impending debt payment to the agency. The agency then sends a debt collection agency representative to deal with the consumer. Some collection agency representatives will return the signed forms, but many won’t.

Once the debt collection agency representative has met with the consumer, collection agency employees use intimidating tactics in order to get money from the person. At the worst, they threaten to have people’s credit ruined. At best, collection agents will try to get money by warning the person that they will be reported to the credit bureaus. At worst, they’ll threaten to take legal action against the person for not paying the debt. If you’re worried about a debt collection agency in Calgary, you should contact the three credit bureaus – Equifax, Trans Union and Experian – and inform them of your debt.

If you want to avoid the intimidating tactics of debt collection agencies in Calgary, you can choose to pay the money it would cost to settle your outstanding debt yourself. Of course, doing so could leave you with more debt to pay. If this is the case, you can hire a debt collection agency in Calgary to do the work for you. A debt collection agency in Calgary can help you settle overdue bills and negotiate new terms with creditors. You may even make it possible to eliminate late fees and interest charges altogether.

When you have an unpaid bill that needs to be settled, hiring a debt collection agent in Calgary is a smart move. This way, you get the best deal possible without hiring an expensive attorney. Before hiring one, however, make sure you understand all of the terms of the agreement you will sign with a collection agent in Calgary. This includes any collection charges that will be applied to your outstanding debt and the length of time the collection agent will have to repay your debt if there are any outstanding balances.