Stop Collection Calls: Legal Tips and Debt Solutions for 2025

  • scottm
  • January 18, 2025
collection calls

Collection calls can disrupt your daily life and create significant stress. In 2025, as financial pressures increase for many Canadians, it’s more important than ever to understand your rights when dealing with collection agencies. According to recent statistics, over 25% of Canadians with outstanding debt report receiving frequent calls from collection agencies. These calls can feel overwhelming, but there are steps you can take to protect yourself and resolve your debts.

This guide will explain your legal rights, provide actionable tips to stop collection calls, and explore debt solutions to help you regain control of your finances.

Understanding Collection Agencies in 2025

What Are Collection Agencies?

Collection agencies are third-party companies hired by creditors to recover unpaid debts. They are often tasked with collecting on credit card balances, unpaid loans, or utility bills. In some cases, creditors sell debts to collection agencies, giving them the legal right to pursue payment.

How Collection Agencies Operate

Once a debt is turned over to a collection agency, the agency will attempt to contact you through calls, letters, and sometimes emails. Their goal is to negotiate payment or collect the full amount owed. However, they must follow strict rules to avoid harassment or illegal practices.

Why Collection Calls Are Increasing

Economic factors such as rising interest rates and inflation have led to higher levels of debt. This has increased the activity of collection agencies as creditors attempt to recover unpaid balances.

Your Legal Rights When Dealing with Collection Agencies

What Collection Agencies Can and Cannot Do

Under Canadian law, collection agencies must follow specific guidelines. They:

  • Can contact you by phone, email, or letter.
  • Cannot call during prohibited hours (e.g., before 7 a.m. or after 9 p.m.).
  • Cannot threaten, harass, or mislead you.
  • Cannot contact your employer without your consent, except to verify employment details.

Provincial Debt Collection Laws

Each province has specific laws regulating debt collection practices. For example:

  • Ontario: Agencies cannot contact you more than three times per week after establishing contact.
  • British Columbia: Agencies must provide written notice before making contact.
  • Alberta: Debt collectors cannot discuss your debt with anyone other than you without your permission.

Understanding these laws helps you identify and report any violations.

How to Report Illegal Behavior

If a collection agency violates your rights, you can file a complaint with your provincial consumer protection office. Document all interactions, including call times and the content of conversations, to support your claim.

Practical Tips to Stop Collection Calls

  1. Verify the Debt

Before agreeing to pay, confirm that the debt is valid. Request documentation from the collection agency, such as the original loan agreement or a statement showing the balance owed.

Actionable Tip:

  • Send a written request for verification within 30 days of the agency contacting you.
  1. Keep Records of Communication

Maintain a log of all calls and correspondence. This record will be useful if you need to dispute the debt or report the agency for illegal practices.

Actionable Tip:

  • Note the date, time, and content of each call, along with the name of the person you spoke to.
  1. Communicate in Writing

If you want to limit or stop calls, request that the agency communicate with you in writing. While this won’t erase the debt, it can reduce the stress of frequent phone calls.

  1. Negotiate a Payment Plan

Many collection agencies are willing to negotiate payment terms. Propose a payment plan that fits your budget and ensures consistent progress toward settling the debt.

Example:

Julie, a homeowner in Ontario, negotiated a payment plan to pay off a $5,000 credit card debt in monthly installments of $250. This stopped collection calls and allowed her to regain financial stability.

Debt Solutions to Eliminate Collection Calls

  1. Debt Consolidation

Consolidating multiple debts into one loan can simplify payments and lower interest rates. Learn more about debt consolidation to reduce financial stress and avoid collection actions.

  1. Home Equity Loans

If you own property, a home equity loan can provide the funds needed to pay off outstanding debts. This option offers a lower interest rate than most credit cards and can prevent future collection activity.

Example:

David, a homeowner in Alberta, used a home equity loan to pay off $20,000 in outstanding debts. This cleared his accounts with collection agencies and reduced his overall monthly payments.

  1. Consumer Proposals

A consumer proposal allows you to negotiate a reduced debt amount with creditors. It also provides legal protection against collection calls and wage garnishments.

How It Works:

  • A licensed insolvency trustee helps you create a proposal.
  • Once accepted, creditors and collection agencies must stop contacting you.

Real-Life Case Study: Stopping Collection Calls with a Home Equity Loan

Sarah, a homeowner in British Columbia, faced relentless calls from a collection agency over a $15,000 unpaid credit card debt. Rising interest rates had made it impossible for her to keep up with payments. She contacted TurnedAway.ca and qualified for a home equity loan. By using her loan to pay off the debt in full, Sarah eliminated collection calls and reduced her financial stress.

FAQs About Collection Calls in Canada

  1. Can a collection agency contact me at work?
    No, unless it’s to verify your employment details. They cannot discuss your debt with your employer.
  2. What happens if I ignore collection calls?
    Ignoring calls won’t erase the debt. It may lead to further action, such as wage garnishment or legal proceedings.
  3. How can I stop collection calls?
    You can request written communication, verify the debt, or resolve the balance through negotiation or payment.
  4. Are collection agencies allowed to contact my family?
    Agencies can contact family members only to locate you but cannot discuss your debt.

Take Action to Regain Control of Your Finances

Collection calls can feel overwhelming, but you have options to stop them and resolve your debts. Whether you verify the debt, negotiate a payment plan, or explore solutions like home equity loans or debt consolidation, acting now can prevent further stress.

TurnedAway.ca specializes in helping Canadians manage debt and regain financial stability. For more insights, read our article on how Canadian home sales rebound impacts prices or explore solutions for property tax arrears.

Start your journey to debt relief today by applying online or scheduling a free consultation. With the right tools, you can stop collection calls and rebuild your financial future.

 

Search

Recent Post

How Far Behind on Property Taxes Before Foreclosure in Canada?

How Far Behind on Property Taxes Before Foreclosure in Canada?

Property taxes are a necessary obligation for homeowners, funding vital municipal services such as schools, road maintenance, and emergency services. Falling behind on property taxes can lead to serious consequences, including foreclosure. While the timeline and...

The Future of Debt Relief: How AI Can Assist You in 2025

The Future of Debt Relief: How AI Can Assist You in 2025

Debt can feel overwhelming, especially when financial challenges arise. In 2025, artificial intelligence (AI) is revolutionizing how individuals manage debt. According to a recent market report, the global AI-powered personal finance market is projected to grow by...

Follow Us