Collection Calls: How to Stop Creditors From Calling

Non-stop collection calls are one of the most stressful parts of debt. And they are not just some small nuisance—plenty of payment calls with aggressive collectors induce high levels of anxiety.

Luckily, there are some smart ways to handle these persistent credit agents. Even better, plenty of debt solutions can cease all collection attempts immediately. Let’s break down collection calls and discuss actionable steps to stop them for good.

What Are Collection Calls?

Collection calls are repayment requests made by creditors over the phone. If you have unpaid debt, late or missed payments can trigger collection calls. Debt recovery calls typically come from three primary sources:

• The primary lender: Your creditor is often the first source of collection calls. If your personal debt problems aren’t too sizable or behind schedule, they will contact you to collect the money you owe. At this point, negotiations are more direct—you can try to negotiate the repayment terms to limit collection calls.
• Collection agencies on behalf of the lender: If your lender fails to recover what you owe, they may transfer your debt to an agency. Unlike your lender, collection agencies are more relentless as they earn a percentage of the debt collected. They may make repeated attempts and demand repayment with aggressive tactics.
• Debt collection agencies with bought debt: Your lender may sell your debt to a debt collection agency. If they don’t believe they can collect the money you owe, they can sell the debt for pennies on the dollar to at least get some cash back. Debt collection agencies can then earn a significant profit if they get you to pay your outstanding debt in full. With all the risks, these agencies can be very aggressive.

How to Handle Collection Calls

Collection calls can make you afraid to answer your phone. It may be tempting to hang up or not answer your phone. Unfortunately, this will not stop the activity. And it can even worsen things, as agencies might take legal action or garnish your wages.

So, what can you do? Here are some steps you should take when you receive a collection call:

1. Verify the debt collection agency

First, confirm that you are dealing with a legitimate debt collector. The debt collector must be authorised to act in your province. Scams are everywhere, and that includes the debt collection industry. Protect yourself by verifying the agency. You can check them out at the Consumer Affairs office of your province (Consumer Protection BC licences debt collectors in British Columbia). Start the relationship with the collection agent with professional courtesy.

2. Get written details

Second, get written details on all debt related to the collection call. Written data eliminates the possibility of error. For example, you might have the same name as a debtor, or perhaps you have already settled the debt. Get clear and ensure the collection call is meant for you.

3. Know the statute of limitations

Third, learn about the statute of limitations on unpaid debts in your province. The statute of limitations determines how long your lender can legally collect your debt. If your debt passes the date that applies in your province, the lender has no authority. This information is essential, as it can stop all collection calls. Plus, if you pay on an expired debt, you’ll open the debt up again for collection purposes.

4. Know your rights

Fourth, research your legal rights and consumer protections when it comes to collection calls. The federal government and provinces have specific laws for debt collection meant to protect consumers from unfair business practices.

For example, in BC, debt collectors must adhere to the following strict rules:

• Threats: Debt collectors may not intimidate, threaten, or use profane language on a collection call.
• Harassment: Debt collectors may not communicate with you, your family, or your social circle to the point that it becomes harassment.
• Written notice: Debt Collectors cannot initiate verbal contact to collect the debt until five days after they have sent you a written notice. The notice must detail how much you owe, who the creditor is, who currently holds the debt, and who the agency is.
• Attempts at contact: Debt collectors may not contact you at work (except to get your contact information).
• Contacting others: Debt collectors may not contact family, friends, co-workers, neighbours, or any members of your social circle unless it is to get your contact information.
• Calling hours: Debt collectors may only call you, family, friends, neighbours, co-workers, or members of your social circle on a strict schedule (7:00 am to 9 pm, Monday-Saturday; 1:00 pm to 5:00 pm on Sundays; never on a statutory holiday).
• Excessive collection: Debt collectors may never collect more than you owe on the debt.

How to Stop Collection Calls

Stopping collection calls can bring some peace and relief to your life. Fortunately, there are several ways to stop collection calls for good:

File a cease and desist

You or your lawyer can send a written request to the collection agency by letter or email and ask them to stop all debt repayment calls. Once they receive your request, they should only communicate with you in writing. This process is called a “cease and desist” and takes about three to five days.

Pay the debt

You can make arrangements to pay the money you owe. This stops all collection calls. But be sure to follow four critical criteria when making payments:

1. Verify: Confirm the amount you owe and make sure it’s a legitimate debt.
2. Deliver: Never pay the money you owe in cash. Instead, use a cheque, bank draft, or money order and send by registered mail. This ensures the collector receives the payment.
3. Record: Get a receipt and keep a record of your payment.
4. Confirm: Double-check that you only pay what you owe. If you engage with debt that passed the statute of limitations, you’ll open the debt process again.

Opt for a Consumer Proposal

A Consumer Proposal can reduce your debt by up to 80%. And, it is a form of debt consolidation that combines all debt (and fees) into one monthly payment. Consumer proposals also allow you to keep all your assets and avoid filing for Bankruptcy.

Once you file a Consumer Proposal, all collection activity, including collection calls, must stop. Your creditors cannot harass you for payment, take legal action, or garnish your wages as it is a  government debt relief program.

You must consult a Licensed Insolvency Trustee (LIT) to file a Consumer Proposal, as your LIT distributes the money to your creditors.

File for Bankruptcy

If you are insolvent (meaning you owe more than you can pay), filing for Bankruptcy is another option. You need an LIT to file for Bankruptcy on your behalf. However, like a Consumer Proposal, all collection activity stops after you file.

Where to Get Debt Help

Life is too short to have to deal with collection calls. But if you find the process too complex and time consuming, talking with the LITs at Chase and Associates. We can help you stop collection calls with no hassle. Our debt management solutions are legally binding, so you won’t have to deal with collection agencies anymore. Call us at 1-866-317-8331 or contact us online for a free consultation and advice on stopping debt repayment notices.