Unpaid Collection Accounts? Don’t Fret There are Solutions!
Unpaid collection accounts can create major roadblocks when you’re trying to manage your finances or access credit. Whether it’s from old utility bills, credit cards, or unsecured loans, these accounts can drag down your credit score and leave you feeling stuck. For homeowners, this becomes even more frustrating—especially when you’ve built up equity but are told you can’t qualify for traditional financing.
The good news? If you own a home, there are still options. Even with unpaid collection accounts, you may be eligible for home equity loans or a refinance through alternative lenders who understand that credit issues don’t define your financial future.
At TurnedAway.ca, we specialize in helping Canadians who have unpaid collection accounts or poor credit histories get back on track. A home equity loan or refinance allows you to tap into the value of your home to pay off collections, consolidate debt, and free up monthly cash flow. These solutions are specifically designed for homeowners who may not qualify with the big banks—but still deserve access to the equity they’ve worked hard to build.
Don’t let unpaid collection accounts hold you back from financial recovery. In this article, we’ll explain how they affect your credit, how you can address them strategically, and how leveraging your home equity might be the key to moving forward—regardless of what’s in your credit report.
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What is Debt Collection?
Debt collection happens when a company tries to collect overdue debts from borrowers. If you haven’t kept up with your loan or credit card payments, it won’t be long before your debt collector calls you. This can also happen if you have co-signed a loan or are an authorized user on someone else’s credit card.
There can be many reasons for debt, and these can include:
- Medical bills
- Property taxes
- Car loans
- Personal loans
- Credit card expenses
- Student loans
- Unpaid utility and phone bills
- Revenue Canada bills
- Debt collectors are typically third-party companies that work on behalf of the original creditor and may buy the debt from the creditor for a fraction of the original amount.
At TurnedAway.ca, we understand it can be difficult to manage your unpaid debt, and we are here to help. Take advantage of the power of your home’s equity and use it to your advantage.
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About Unpaid Debt Collection Agency
Most major banks and traditional financial institutions won’t loan to a client who is in collections or has unpaid collection items on their credit report. There are still options though.
At TurnedAway, we’ve been working with lenders to help enlighten those who would like to get out of debt that one’s credit score should not be the determining factor in accepting or denying a loan or mortgage application. Instead, we believe everyone deserves a chance to pursue their financial goals, and we do what we can to ensure they get a shot at getting a loan or mortgage despite any unfavorable credit report.
The Reasons Behind Unpaid Debts or Bad Credit
The reality is that bad credit is usually the result of someone experiencing a difficult time in their lives and, given the opportunity, will work to fix it as soon as they can. Unpaid collection accounts are more common than one might think. No one decides one day that they don’t want to pay their bills, but oftentimes a major life event prevents them from doing so, such as:
- Illness
- Job loss
- Job layoff
If you want to stop the incessant collection calls, avoid legal action, or just want to get your credit back on track, we can help – no matter how bad your credit is or how many or how much you have in collections!
We can help get your creditors off your back and can even negotiate on your behalf to get you the best possible settlement. We represent your best interests and not the interests of your creditors or the collection agencies.
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At TurnedAway.ca, you’ll get the best advice possible to resolve your unpaid debt. Apply for a mortgage now to experience our seamless process and fast approval.
How Collections Impact Your Credit Report and Credit Scores
Your credit report is designed to give lenders an insight into your credit history and how well you manage your debt. Your credit report include certain factors lenders will look for, and these include:
- If you have been responsible with your debts and kept up with payments.
- If you have delinquent accounts.
- If you have any accounts in collection.
Accounts that reach the collection stage are considered seriously past due and will negatively impact your credit report. But you’re not out of options! Our team is here to provide you with valuable insights and professional guidance on managing unpaid debt and help you find the credit solution that works best for you.
What Happens When Your Debt is Sent to a Collection Agency?
Generally, you’ll receive a written notification about your unpaid collection before debt collection companies contact you regarding outstanding payments.
The written document should contain the following information:
- Debt collection agency name
- Name of the person or business that you owe money to
- Amount of money that you owe
If you’re notified that your creditor is transferring your debt to a collection agency, you must contact them immediately. You may be able to:
- Pay your unpaid balance to prevent it from being sent to collections.
- Negotiate with your creditor to come up with a feasible repayment plan for the debt you owe.
What Happens to Your Credit Score?
When your creditor transfers the debt to a collection agency, you can expect your credit score to decrease. This unfortunate situation has many negative effects, such as:
- Lenders may deny your future credit applications or approve you but impose a higher interest rate.
- Insurance companies may charge you higher insurance premiums.
- Landlords could potentially deny your rental application or make you pay a higher rental amount.
- Employers may not consider hiring you.
If you find yourself with unpaid collection accounts and no solutions, there is help! At TurnedAway.ca, our expert team of mortgage specialists will work with you to get your credit score back on track!
What to Do When a Debt Collector Calls?
Make sure to ask and write down these pieces of information:
- Name of the person calling
- The company for which the debt collector works for
- Name of the company the debt collector is collecting money for
- Debt collector’s telephone number
You may also ask about the amount due, who is owed the money, and when it was originally borrowed.
Here’s what you must do next:
- Tell the debt collector you must verify their information before getting back to them.
- Carefully review your bills and bank statements to verify if the debt is yours and confirm that the amount you owe is accurate.
- Tell them that the collection agency only communicates with you in writing.
- Have your legal representative deliver this formal request to your creditor through registered mail with the necessary contact information included.
The process can be intimidating, but you don’t have to go through it alone. Reach out for help that will improve your credit score over time now.
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We have the expertise and resources to get you the help you need. Give us a call today and start your journey towards financial freedom!
How Can I Stop a Debt Collector from Contacting Me?
It is your right to ask a debt collector not to communicate with you anymore? To put an end to communication from debt collectors, you may follow these steps:
- Send a letter to the collections company asking them to stop contacting you, and keep a copy of your own.
- If you have a legal representative, inform the collector about this and let them communicate with you through your attorney.
It’s recommended that you have a conversation with the collector, even if you do not believe that you are indebted or unable to make immediate repayments. This will provide you with additional information regarding the debt and allow you to verify its authenticity.
To prevent falling victim to debt collection fraudsters, exercise caution when disclosing personal or financial details, especially if you’re unfamiliar with the collector. Not all individuals who claim that you owe a debt are real and some may be attempting to deceive you into giving away your money.
Choose TurnedAway.ca for Unpaid Collection Accounts
If you’re facing difficulties with finding solutions for your unpaid collections, it’s always a good idea to seek professional advice. Consult with a mortgage specialist such as TurnedAway.ca to explore your options and find a solution that works for you.
Don’t hesitate to reach out and get the support you need to navigate the challenges of managing your debts. With our help, you can resolve your unpaid collection accounts fast and easily. Get started today and enjoy the peace of mind from taking control of your finances. Get on with your life and live your dreams!