How To Stop Collection Calls For Good

Are you tired of receiving constant phone calls or texts from debt collection agencies? If creditors and collection agencies are harassing you about an unpaid debt, it might be time to make a debt repayment plan to deal with all of your debt problems.

Under Canadian debt collection laws, you have rights when dealing with collection agencies. There are also government debt solutions that can legally stop creditors’ actions and help you eliminate your debt.

Here’s how to stop collection agency calls, eliminate your debt and get your financial house in order.

Steps To Stop Collection Calls

Debt collection calls are made by agencies trying to recover unpaid debts on behalf of creditors. These calls may begin after payments on a loan, credit card, or other financial obligation become overdue. Unfortunately, these calls can be persistent and stressful and even lead to feelings of harassment.

Here are some effective strategies to stop debt collector calls:

1. Request Communication in Writing Only. Ask the collection agency to communicate with you only in writing and keep records of when you made this request. Follow up with a written confirmation of your request.

2. Verify the Debt is Legitimate. If you’re unsure the debt is owed as stated, ask for verification. The notice must include who you owe money to (your original creditor), the amount you owe, the collection agency’s name, their contact information and confirmation that they have permission to collect.

3. File a Dispute if Necessary. If you don’t believe you owe the debt, write a formal dispute letter. State clearly why you dispute the amount or the debt itself and request proof of the debt.

4. Figure out Your Repayment Options. If the debt is valid, you have several repayment options, including:

   • Direct negotiation with the debt collector
   • Working with a credit counsellor to manage payments
   • Filing a consumer proposal to settle debts and stop collection actions
   • Declaring bankruptcy to eliminate debt and gain creditor protection

Understand Your Repayment Options

To permanently stop collection calls, you need to address the underlying debt. Here are your main options:

Negotiating with Debt Collectors

Working directly with a collection agency is possible if you can afford to repay the debt and are comfortable negotiating. While collection agents often work on commission, they may be willing to accept a reasonable payment arrangement or lump sum settlement since collecting something is better than nothing. Be professional in your approach, but don’t be pressured into promises you can’t keep. Always get payment arrangements in writing and keep detailed records of your conversations and agreements.

Debt Management Plan (DMP)

Credit counselling provides professional help in negotiating with collectors through a debt management plan. A credit counsellor can ask your creditors to stop collection calls and possibly reduce or eliminate interest charges. Be aware that any creditor’s participation is voluntary, and a DMP cannot formally stop legal action. You’ll typically repay the full principal amount of your debts plus fees, but a credit counselling agency can help structure a manageable monthly payment and provide valuable budgeting advice.

Consumer Proposal

If other efforts don’t stop the calls, formal debt relief options like filing a consumer proposal or bankruptcy may provide immediate protection from collection agencies. Working with a Licensed Insolvency Trustee (LIT) can help you understand and pursue these options if needed.

A consumer proposal is a legal debt settlement agreement between you and your creditors to repay a portion of what you owe, supervised by a Licensed Insolvency Trustee. This government-approved debt relief option includes a legal stay of proceedings, which stops all collection calls.

Once a proposal is filed, your creditors are notified. Collection calls typically stop within a week or two as the companies notify all their employees and agents.  If they do call, all you need to say is you filed a consumer proposal and give them the name of your trustee. If they don’t stop calling, talk with your trustee. At Hoyes Michalos, we will reach out to any collection agencies or creditors who might continue to bother you once you file.

Your trustee will work with you to propose a monthly payment that fits your budget. This often results in paying back only a percentage of your total debts while keeping your assets.

Key benefits of a consumer proposal include:

• Stopping all collection calls legally
• Reducing your total debt amount
• You make one monthly payment
• Your assets are protected
• You get immediate legal protection from all actions, including lawsuits and wage garnishments.

Bankruptcy

If you cannot afford to make any payments toward your debts, bankruptcy might be your best option. Bankruptcy is a legal process that provides debt forgiveness and a fresh start. As soon as you file for bankruptcy with a Licensed Insolvency Trustee, you receive legal protection from creditors. Collection calls must stop immediately, and any wage garnishments are halted.

Key features include:

• Immediate legal protection from collectors
• Wage garnishments stop
• Discharge from most unsecured debts upon completion
• A fresh financial start

For more details on how different options compare, use our debt repayment calculator to explore the best path for you.

Understanding the Statute of Limitations

In Ontario, collection agencies cannot take legal action to collect a debt after two years from your last payment or written acknowledgment of the debt. However, this doesn’t mean the debt disappears – collection agencies can still contact you about payment. If you make even a small payment, the two-year period starts over. Before paying old debts, consult a Licensed Insolvency Trustee to understand your rights.

Eliminate Debt. Stop The Collection Calls!

If your debt has become too overwhelming to manage alone, contacting a Licensed Insolvency Trustee (LIT) is a powerful step toward financial recovery.

A Licensed Insolvency Trustee can help you understand all your options for stopping collection calls permanently. LITs are trained and licensed to provide government-regulated debt relief solutions, including consumer proposals and bankruptcy, offering protections from creditors that other advisors cannot provide.

During your free consultation, your trustee will:

• Complete a review of your financial situation, including your debts, income, and assets
• Explain your rights when dealing with collection agencies
• Review all available debt relief options
• Discuss how each option affects collection calls and your credit score
• Help you develop a payment plan that provides debt relief and stops collection calls

At Hoyes Michalos, we offer free, confidential consultations to help you find the right solution to stop collection calls permanently and get a fresh financial start.

Debt Collection Calls: FAQs

Can Debt Collectors Keep Calling Me?

Bill collectors are calling because you owe money. They often are paid a commission for every dollar they collect, so they will keep calling and sending letters as long as they believe they have a chance to collect money from you.

Most collection agencies in Ontario today use computerized “auto-dialers,” so if you don’t answer, the computer puts your name back on the list, and you are called again in an hour. That’s why ignoring collection calls doesn’t work: they just keep calling!

If you are receiving collection calls, it is important to know your legal rights and how collection agencies must deal with you. Rules that govern collection calls vary by province, but in Ontario:

1. Collections agencies must be registered with the Ontario government.
2. They must send written notice before calling (through regular mail; email does not count).
3. Collection agencies must wait 6 days after sending notice before they can contact you.
4. Debt collectors are limited to 3 contacts in 7 days without your consent
5. They cannot call:
   • on Sundays except from 1 p.m. to 5 p.m.
   • other days between 9 p.m. and 7 a.m.
   • on holidays

How Can I Tell if Debt Collectors Are Breaking the Law?

Collection agencies cannot:

• Use threatening or profane language
• Apply unreasonable pressure
• Harass you or your family members
• Contact your employer (except about wage garnishment)
• Charge additional collection fees
• Share your debt information with others
• Continue calling after you’ve filed a consumer proposal or bankruptcy

If a collection agency violates your rights, you can file a formal complaint with your provincial consumer protection office. In Ontario, contact Consumer Protection Ontario. They can investigate and may suspend or revoke the agency’s license. If the agency is violating federal laws, file a complaint with the Financial Consumer Agency of Canada (FCAC).

How Do Collection Calls Affect My Credit Score?

Collection calls themselves don’t impact your credit score, but the underlying unpaid debt does. When you miss payments, your original creditor typically reports the debt as a delinquent account to credit bureaus, which can significantly lower your credit score. If the debt is then transferred to a collection agency, this will appear as a separate negative entry on your credit report.

The impact of collections on your credit report can last for up to six years from the date of last payment, even if you eventually pay the debt. However, taking action to resolve the debt through options like a consumer proposal or debt management plan can help you start rebuilding your credit sooner.

Remember: simply ignoring collection calls won’t prevent credit damage. The best way to protect your credit long-term is to deal with the underlying debt through an appropriate debt relief solution.

Need more help? Contact us today to learn how we can help you stop collection calls and take control of your financial future.