Federal Debt Collection Agency

Consumer Protections On Debt Collection

Under the FDCPA, debt collectors are prohibited from:

• Contacting consumers at unusual times, which typically means before 8:00 a.m. or after 9:00 p.m. in the consumers time zone
• Using obscene or profane language threatening or using violence, or falsely stating or implying that the debt collector is affiliated with the United States government or a state government
• Contacting consumers at their place of work if the consumer has notified the debt collector that they are not allowed to receive calls at work
• Telling a consumers co-workers or friends that the consumer is in debt and
• Abusing or harassing a consumer by, for example, repeatedly calling their telephone or letting it ring continually.

Under the FDCPA, certain debt collection practices are permitted. For example, a debt collector can contact your friends, neighbors, and co-workers, but only to find out your home address, phone number, and work address.

Also, debt collectors can contact your attorney, the creditor, the creditors attorney, the debt collectors attorney, and credit reporting agencies . Debt collectors may also contact your spouse, parent , guardian, executor, or administrator.

The 5 Best Debt Collection Agencies Of 2022

• Best for Low Invoice Amounts: Prestige Services Inc.

• Extra commissions charged on older invoices

• Added fees for international invoices

Atradius Collections has been in operation since 1925 and is a leading commercial debt collection agency. Based in the Netherlands, the company is a member of several different debt collection trade associations throughout the world, including the International Association of Commercial Collectors , the Credit Services Association, and the Federation of European Credit Management Associations.

Atradius Collections supports more than 15,000 customers and handles more than 90,000 cases of commercial debt per year. Atradius Collections provides commercial debt support worldwide, working in more than 30 different countries.

Unlike many companies, Atradius Collections does not have a required minimum on debt. Its fees are dependent on your invoice amount and client location. The commission fees were not readily available on the Atradius Collections site.

For an invoice that is 180 days overdue or more, Atradius Collections will charge you an additional 2% commission on top of its standard rate. If you have international clients that have not paid their invoices, youll pay an introduction fee and a higher commission than if they were based in the United States.

Can A Collection Agency Take You To Court

Collection agencies can use a variety of tactics to try to persuade debtors to pay. One tactic involves threatening a lawsuit, criminal prosecution, wage garnishment, or even jail time when they have no authority to do so. They might even produce phony documents showing that any of these actions are going to take effect within a certain time period.

Can debt collectors take you to court over your outstanding debts? In some cases, they can. But they cannot get you thrown in jail just for having outstanding debt.

A debt collector or creditor can pursue a civil case against you in court and seek a judgment to have your wages garnished to repay the debt. However, this can only be done within a set time period. How long can debt collectors try to collect in Canada through the court system? This time frame varies by province and the clock starts ticking based on when the debt was acknowledged:

• 2 YEARS: Alberta, British Columbia, New Brunswick, Ontario, Saskatchewan
• 3 YEARS: Quebec
• 6 YEARS: Manitoba, Newfoundland, Labrador, Nova Scotia, Prince Edward Island, the Territories

Collectors, on behalf of the creditor, must take you to court first and win before any garnishment of wages or similar actions can take placewith the exception of money owed to the government or to a credit union. These organizations can issue wage assignments, similar to wage garnishment but without going through the courts.

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What They Are Not Allowed To Do

• charge you any fees
• contact you on a statutory holiday
• use threatening, profane, intimidating or coercive language
• contact you more than 3 times in a 7-day period without your consent
• give false or misleading information to any person, including your family, friends or employer
• recommend that a creditor take legal action against you without notifying you of their intention to make this recommendation

Third Party Debt Collection In Northamerica

Third party debt collection isdifferent in North America compared to China, Vietnam, Thailand, Malaysia,Japan and other countries in the Far East. Not just anyone can legally collectdebt for someone else in Canada and the United States. Thetwo most predominate legal methods of getting debt collected are lawyers or a licenseddebt collection agency.

Dark suit, or illegal strong arm debt collection, exists inNorth America, but the criminal penalties are extremely severe. Also, there arelegal ramifications. In North America, you are legally responsible and liableshould anything go wrong. If it reallygoes wrong, you can end up plastered on the Internet and your reputation inruins. When getting debt collected in Canada and the United Statesalways use a lawyer or licensed, bonded and insured debt collection agency.

In-House Receivable Services or IRS is a fullylicensed and bonded third party debt collection agency. We also carry anadditional $2 million dollars per instance in liability insurance.

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What If Ive Already Paid The Debt In Collections

If youve already settled your debt, let the bill collector know this. If theyre persistent, provide proof of payment. This can include email or mail correspondence with the creditor as well as payment receipts.

If you provide receipts, only offer collection agencies copies or scans of them and never provide the originals. If you dont have this documentation, you can contact the creditor to obtain it.

Can You Stop A Debt Collector From Contacting You

You can stop a debt collector from contacting you by writing a certified letter to the collector telling them to stop. Keep a copy for your records. Once the collector receives your letter, they may not contact you again except to say there will be no further contact or to notify you that the debt collector or the creditor intends to take some specific action. Please note, however, that sending such a letter to a collector does not make the debt go away if you actually owe it. You could still be sued by the debt collector or your original creditor.

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Dealing With Debt Collectors: What Are Your Rights

Reading time: 5 minutes

If youre struggling with debt and suddenly find yourself fielding calls from collection agencies, its important to know that youre not powerless in this situation even if it may feel that way sometimes. There are rules regulating what debt collectors can say and do in trying to get your payment. The Fair Debt Collection Practices Act is a federal law that makes it illegal for collectors to use abusive, unfair or deceptive practices to collect from you.

Knowing your rights under this act will help you take control of the situation and avoid potential abuses and scams.

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What Happens When Your Debt Is Sent To A Collection Agency

If your past-due debt has been purchased by a collection agency, they will first notify you either by phone or in writing. By law, you must receive written notice, also known as a debt validation letter, within five days of the collector’s first attempt to contact you. This notice must include the amount you owe, the name of the original creditor and a statement of your right to dispute the debt.

It’s important to keep this letter throughout the debt collection process, as it can be an important tool should you need to dispute the debt for any reason. After you have been contacted by the debt collector, it’s time to take steps to repay what you owe.

Although the collection agency may not report the unpaid debt to the three nationwide consumer reporting agenciesEquifax, TransUnion and Experian it is a good idea to check your credit reports. This is one way to know whether your credit is being impacted by the past-due debt.

What Is A Collections Agency

“A collection agency is a company that is hired by lenders, creditors, medical providers and federal and local governments to get you to pay or make arrangements to pay what you owe them,” Eweka tells Select.

The most common types of debt that go to collections are credit card balances and medical bills, but there are many other reasons why people go into debt. Rent, student loans and tax debts are other examples of what can get passed on to a collections agency.

According to Debt.org, there are three phases to debt collection:

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Can Collection Agencies Charge Interest In Canada

You may be wondering if the interest on your debt can grow once it has gone to collections. The short answer to this question is no. A collection agency cannot add interest to the debt theyre trying to collect on. However, if you incur further debt with the original creditor, that creditor may have the collection agency attempt to collect on the new balance.

For example, say you have a credit card balance that goes to a third-party collector organization. The debt collector cannot add any extra interest in their collection efforts. However, if the original credit card remains open somehow and a new balance is incurred and not paid, the credit card company or bank may pass that on to the collection agency and the balance you owe will grow.

What Can Debt Collection Agencies Actually Do In Canada

Excessive debt and frequent calls from debt collection agents can create an incredible amount of anxiety. You might have to deal with loan denials, sleepless nights, and arguments with loved ones. Its possible that debt collectors in Canada may even tell you that theyre going to take you to court to recover the money you owe them.

Over the years, Credit Canada has worked with many consumers who have resorted to unplugging their landlines and putting their cell phones on silent just to stop the constant barrage of debt agency collection calls in Ontario and other provinces. But where does Canadian law draw the line when it comes to collection calls?

You might be wondering things like what can a collection agency do to me in Canada, can a collection agency sue you, or how do collection agencies work? Before answering these questions, its important to examine the debt collection laws and what limits they impose on collection agencies.

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How They Should Contact You

In Ontario, registered collection agencies must send you a private letter . Their letter must include:

• information on how much you owe and the type of product or service that put you in debt
• the name of the business/individual you owe money to
• the amount of the debt on the date it was first due and payable and, if different, the amount currently owing
• notification that a breakdown of the current amount owing will be provided upon request
• the name of the collection agency and collector who are demanding payment of the debt
• that the collection agency is registered in Ontario
• the contact information of the collection agency, including the full mailing address and telephone number and, where available, email address and fax number
• a disclosure statement, which explains your rights and the steps you can take if you think the agency has broken the law

After the agency sends the letter

They must wait 6 calendar days before they next attempt to collect payment of the debt.

Contact means the agents must actually speak with you, email you or leave you a voicemail. If you dont answer the phone and the agents dont leave a message, it doesnt count as contact. A letter sent by regular mail also does not count as a contact.

Debt Collection & Debt Collection Scams

Michigan consumers are falling behind on paying bills for all types of reasons, including job losses, increased mortgage payments, or medical emergencies. Because dealing with debts and debt collectors can be frightening and overwhelming, this consumer alert provides background on the dos and don’ts of debt collection, and tips on how to spot and avoid debt collection scams.

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If You Dispute A Debt

If you dispute the legitimacy of something in your debt collector’s file, you must give the collector written notice. Simply calling the collector won’t cease collection activities.

If possible, send your dispute letter by certified mail so you know it was officially received by the collector. The collector then has 30 days to determine whether or not the disputed item is correct.

If the disputed item is correct… The debt collector can continue collection activities.

If the disputed item is incorrect… It must be corrected. The debt collector must notify anyone who has already received a report containing the incorrect item. If, at the end of 30 days, the debt collector has not been able to determine whether the item is correct or not, they must make the change you requested and notify anyone who received a report containing the incorrect item.

What Happens When You Are Sent To A Collections Agency

If you have a credit account with a balance that becomes past due, your lender may enlist the help of a collection agency. Collection agencies are companies that purchase consumer debt and work to recover unpaid balances.

Some lenders have special in-house departments dedicated to debt collection, while others hire third parties to handle collections on their behalf. Some lenders may even hire legal representation to sue borrowers to recover outstanding debts. However, in all of these cases, the goal remains the same: to contact borrowers and secure the outstanding balance on any past-due accounts.

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Part Ii: Statute Of Limitations

Depending upon the type of debt that you owe and the length of time since your last payment you may be in a position to avoid paying a debt. This can be a complex topic and anyone who wishes to avoid paying a debt due to the expiry of a limitation period is advised to speak with a lawyer licensed to practice law in their province.

What Happens To Your Credit Score

Once your creditor transfers your debt to a collection agency, your credit score will go down.

A low credit score means:

• lenders may refuse you credit or charge you a higher interest rate
• insurance companies may charge you more for insurance
• landlords may refuse to rent to you or charge you more for rent
• employers may not hire you

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Ii Limitation Periods Across Canada

The length of a limitation period varies significantly from one province to another. The majority of Canadians, however, live in a province where the Statute of Limitations is 2 years. In Quebec it is three years. In Manitoba, New Brunswick, Newfoundland, Prince Edward Island, and the three territories the limitation period is six years.

The Statute of Limitations will be of no assistance, whatsoever, to those with certain types of debts:

Best For Low Invoice Amounts: Prestige Services Inc

• Low debt minimum of $200

• Rates may be negotiable on larger accounts

• Contingency rates as low as 22%

• Added fees for attorneys

• Only serves B2B

Prestige Services is a debt collection agency that specializes in the collection of domestic and international commercial accounts. The agency has been in operation since 1996. While most commercial debt collection agencies have high debt minimums, Prestige Services is willing to work with accounts that have outstanding balances as low as $200.

The agency works on a contingency basis. Claims from $200 to $3,000 are subject to a contingency fee of 25%, and higher claims are subject to a fee of 22%. The rate can be negotiated for claims over $20,000.

Prestige Services only services commercial accounts. If youre looking for a collections agency for consumer accounts, youll need to find another company.

Why We Chose It: Because many commercial debt collection agencies have high debt minimums, many businesses may struggle to find an agency willing to work with them. However, Prestige Services is willing to accept accounts with minimums as low as $200, and its commissions are on the lower end of what agencies typically charge.

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