Collection Agents
Collection agents are hired by creditors to help ensure that payments are being made. Collection agents can be quite intimidating and will use a variety of strategies to obtain the money owed. But what are collection agencies legally allowed to do, and what are they not permitted to do?
Can a creditor take my car?
In short – yes, a creditor can take your car, but it is unlikely and it is only permitted under certain circumstances.
- If you have a vehicle loan and have missed payments, a creditor can repossess the vehicle.
- If you file for a Consumer Proposal and list the vehicle loan on it, the creditor will repossess the vehicle.
- Although very rare, if you own a vehicle outright and it is worth a fair amount, a creditor can put a lien on it, meaning if you sell it you must pay the creditor what you owe them.
Can a creditor take my house?
A creditor can force the sale of your home, but this generally only happens if you owe a large amount of debt. This generally happens over a long period of time, and you will receive lots of notice.
Can a collection agent come to my house/work?
Most collection agents are not permitted to come to your home or your place of employment, but there are some companies that fall outside of these stipulations. These creditors are called “high risk lenders”, and they include companies such as payday loan companies. If a collection agent from these companies is coming to your home or your place of employment, Debthelpers can help! Give us a call today to stop unwanted visits from collection agents!
Can a collection agency call my work?
A collection agent can only call your place of employment once to obtain your employment information. Other than that, they are not permitted to call your place of employment unless your employer has guaranteed your debt, they are notifying them of a court order which allows them to automatically deduct a portion of your wages, or if you have given them written permission to contact your employer. Many times a creditor may write in the initial contract a clause that states you give them permission to contact your employer. If this happens, you can call your creditor and instruct them to remove that contact from their system, which will legally prevent them from being able to call your place of employment in the future.
Can A Collection Agency Threatening Legal Action?
If a collection agent is threatening legal action, it is important that you act promptly and accordingly. A creditor can go through the court system and obtain a judgement against you which can result in a variety of situations. With the proper judgement, a creditor can garnish your wages, sue you, put a lien on your assets, and even force the sale of your assets.
Is a creditor or collection agency threatening legal action against you? Debthelpers can help you! Call or email us today to find out how you and your assets can be legally protected from your creditors!
How to solve debt problems:
There are a variety of ways you can go about how solve debt problems, but the three most common ways are:
- Consolidating your debt into a low interest loan
- Filing for a Consumer Proposal
- Filing for bankruptcy
Which option is best for you largely depends on your individual scenario. There are pro’s and con’s to each option, so it is important to research each option thoroughly. In addition, you can talk to one of our financial consultants if you are unsure what option is best for you.
For more information about these options, continue reading further to get a better understanding of what each of these options can offer you.