Question

I am sending you this Question further to our telephone conversation earlier today.  I live in Toronto, Ontario.  Today a collector from a collection agency called my residence.  She confirmed my home address.  This collector has also left voicemail messages at my residence the past few days.  At no time have I received any written notice from the collection agency that employs this collector despite the fact that her employer would appear to know my correct home address.

I was under the impression that collection agencies operating in Ontario were supposed to send a written notice to a consumer prior to making collection calls.  Is this collector breaking the law by calling me before her employer sends me a written notice advising me that their agency represents a particular creditor?

Answer

Under section 21 of Regulation 74 enacted under the Ontario Collection Agencies Act it is illegal for a collection agency to make a collection call to an Ontario resident unless the collection agency has sent a written notice, by regular mail, to the consumer six days prior to the collection call and this written notice is to include the name of the creditor, the balance owing, and the identity of the collection agency or collector demanding payment of a debt.  After I received your message I telephoned the collector you referred to and I spoke with her.  She confirmed that she had called your residence.  You have advised me that this collector already had your correct home address when she called your residence.  Therefore, one has to ask themself why this collector is calling your residence when you have not received a written letter from her employer as required under Ontario law?

My law office has received numerous complaints from Ontario consumers who have been receiving collection calls without first receiving a written notice from the collection agency that is attempting to collect the debt.  It would certainly appear that some collection agencies operating in Ontario are trying to save money by failing to comply with the legal requirement to send a written notice to a consumer prior to making collection calls.

Question

I live in the Greater Toronto Area.  Recently I gave a collection agency verbal permission over the phone to withdraw $100 from my bank account and apply these monies towards my outstanding account.  Over the next 30 to 60 days the collection agency withdrew an additional $500 on two or more occasions from my bank account without my permission resulting in my bank account having a negative balance and my bank penalizing me with service charges.  What can I do?

Answer

I recommend that a consumer never give a collection agency permission to withdraw monies from their bank account–neither verbal permission nor written permission.  I have received a signficant number of complaints about collection agencies making unauthorized withdrawals from a consumer’s bank account after a consumer provided them with authorization to make a one-time withdrawal from the consumer’s bank account.

You can write a letter of complaint to the Ontario Registrar of Collection Agencies, as well as the creditor on whose behalf the collection agency is acting, and senior management at the collection agency.  You can also contact the police and attempt to have fraud charges laid against the collection agency.  If the police are reluctant to lay criminal charges you can arrange to attend at your local courthouse where criminal matters are heard and speak to the Justice of the Peace on duty that day.  After you explain to the Justice of the Peace what has happened the Justice of the Peace may be willing to have criminal charges laid.  When attempting to have criminal charges laid against a collection agency or collection agency employee it is important that you have all of the relevant information and supporting documentation including bank statements. 

You also may want to consider bringing a civil lawsuit against the collection agency and its employees in small claims court.

You may also want to call my office toll free at 1 (866) 996-9941 for a free 10-minute consultation.