Receiving a phone call from a debt collector can be upsetting and stressful.
Don’t worry if a debt collector is harassing you or requesting payment on a consumer bill you owe!
Consider it for a moment and make a plan for how you’ll handle upcoming calls without freaking out! Instead of trying to avoid paying the obligation, you should make sure it is legitimate, understand your rights, and take steps to do so.
It is better to deal with them before they become problems, both for your credit and for your peace of mind.
Here are some tips for handling debt collectors in Canada without getting frustrated.
1. Check Your Credit Report
The collection company that took over the account may not have informed the national credit bureaus if a creditor just charged off one of your bills.
You might be able to settle the debt with the collection agency before the account shows up on your credit reports if you check your credit reports and there isn’t an entry for the debt. If you are aware of the debt, get in touch with the debt collector and see if you can make arrangements for payment before their reporting to the credit bureaus. They might have already disclosed the debt, in which case the credit reporting agencies wouldn’t have had a chance to update your credit reports to reflect it.
2. Get Proper Information on the Debt
Before you decide how to handle the problem, ask the debt collectors for details without acknowledging that you are the one who owes the money. Find out who the initial creditor was, how much was owed, and who the original creditor was. The debt collector should be able to supply as many details as possible. Again, within five days of a collector contacting you for the first time, you should receive this information in writing as well.
There is a “shelf life” for some consumer debt, after which a creditor or debt collector may legally file a lawsuit against you. The statute of limitations on this type of debt varies by state and type of obligation.
3. Get Everything On Paper
Legitimate debt collectors are required to mail you a letter outlining your outstanding debt, including the amount owed, the identity of the original creditor, and their contact information. Additionally, you ought to learn how to contest the debt, which can be helpful if the debt in question isn’t yours.
Within five days after the initial communication, the debt collector must send you information regarding the debt. For it to be documented, submit a written request for one. Verify the debt is yours when the creditor replies with details about it in a letter.
4. Know that You Can Settle
Consider requesting the agency to accept a payment plan if you are willing to accept the debt that an agent is trying to collect but are unable to pay the whole amount.
In this approach, payments are made in installments rather than all at once. They will agree to accept less than the whole amount you owe if you request a settlement. It may be beneficial to have an attorney represent you if you’re uncomfortable working out such an agreement. The law states that a debt collector must abide by your request for them to exclusively get in touch with your attorney.
5. Prevent Future Debts
Bills sometimes accumulate due to unforeseen situations, but there are actions you can do to lessen the likelihood that you’ll ever have to deal with debt collectors again. Making a budget will assist you to ensure that you’re allocating funds across all of your current bills, preventing payments from getting missed.
You can also begin setting money aside regularly for an emergency fund, where even modest sums can pile up over time. This will prevent you from having to take out another loan if you encounter an unforeseen expense because you will have cash reserves.
Do Read: Common types of Convertible Debt
You can deal with a call from a debt collector by being aware of what to do. It’s crucial to understand your rights in this circumstance because there are regulations that debt collectors must adhere to recover past-due debt. Pay attention to debt.