Debt collection is one area of business that’s specifically regulated by the government. It makes sense: you want to instill confidence in the way that you’re collecting on debt, and anything that may not look legitimate can be problematic for recovery.
The Office of Consumer Affairs has a list of specific steps that debt collectors must take to complete transactions with customers. Here’s a look at what they list as parameters for collecting debt.
The right communication
It’s important during debt collection to notify the customer in writing or by other means before you start any processes. There has to be evidence that contact has been made reasonably. It’s also essential that if there are legal or court actions that take place, some kind of notification must be made.
Also very important is how the agency identifies itself. The person must inform the debtor which agency they belong to, who they are representing and state the specific amount owed. It’s vital during the collection process that the agency is clear about any information that is given, so as not to be accused of implying or giving any information that is either false or misleading.
Avoiding excessive contact
At the same time, debt collectors also can’t use techniques that might be considered harassment. This includes the inverse of what’s mentioned above: too much communication. It also needs to take place within reasonable hours. While these rules are varied between each province, common sense can be a great guide to what will work best.
Communicating with others who may be involved
Two specific rules cover contacting family, friends or neighbors for information, which is prohibited except for finding out an address or phone number. There are exceptions if those with relationships have guaranteed the debt or if the debtor gave permission. Collectors also are barred from asking employers for information beyond job title, work address and employment status.
Help with compliance
There are other rules and regulations concerning how you collect debts from your Canadian customers. At MJR Capital, we can navigate through all of those nuances. One of the aspects of collecting that we assure is openness and accountability. We’re able to share findings, wins, opportunities and challenges equally, always keeping transparency front and center. We meet challenges head-on and stay responsive throughout the whole process.
Find out how we can help by visiting our website: MJRcapital.com.
