Personal Finance

COLLECTIONS AND COLLECTION AGENTS: Ask me anything! (Official RFD Thread)

[OP]
Sr. Member
Mar 8, 2009
612 posts
18 upvotes

COLLECTIONS AND COLLECTION AGENTS: Ask me anything! (Official RFD Thread)

HI RFD!

I work in the collection industry. Have for the last 7 (EDIT: 11) years. Multiple agencies, clients and creditors.

If I can be of any assistance in:

-Debunking collection myths
-Helping with collection issues
-Answering common questions
-Saving you money

please let me know. I am here to answer anything you can throw my way from credit bureaus, to stopping live/automated calls even how to use/abuse credit.

Lets have at it.
1775 replies
Deal Addict
User avatar
Dec 28, 2004
1758 posts
172 upvotes
Burlington
Do we have any laws protecting when/how many times/what can be said here in Canada or based on province? (Like the US's Federal Fair Debt act).

Are collectors required to show written proof the debt is owed to the person when asked without calling anymore?
Member
Oct 29, 2009
263 posts
5 upvotes
do you check the credit of ppl you are trying to collect from?
[OP]
Sr. Member
Mar 8, 2009
612 posts
18 upvotes
budfrogs wrote:
Nov 4th, 2009 9:41 pm
Do we have any laws protecting when/how many times/what can be said here in Canada or based on province? (Like the US's Federal Fair Debt act).

When: depends on Provence.
How many:3x weekly attempts or contacts, unless specified on a weekly basis.
What is said: Collectors a limited to what they can say via
-Collection Act
-Specific Client workplan*

*Each client has a laid-out, collection industry specific 'work plan' that is stressed and emphasized by each client, some being more strict than others. Some give the collectors full privileges, allowing you to call the consumers/debtors place of employment, a co-signer if one exists and even neighbors/relatives ect. Some clients (CIBC being one) require all calls to be recorded, a specific manger-collector ratio, segregated collection office with double lock-and-key procedure, segregated printer, fax machine and photocopier.
budfrogs wrote:
Nov 4th, 2009 9:41 pm
Are collectors required to show written proof the debt is owed to the person when asked without calling anymore?
Each agency is required to send a notice/letter informing the consumer that they are acting on behalf of the creditor within one week of the debt being placed in that specific collection agency. The letter needs to go to the last address provided to the CLIENT and NOT to the most recent address on a consumers credit bureau.

Upon your request at any tme, each agency is also required to send you a letter with:
- their letterhead
- the creditors name
- creditors reference #
- amount owing
- collectors full name
[OP]
Sr. Member
Mar 8, 2009
612 posts
18 upvotes
edwardalex wrote:
Nov 4th, 2009 9:54 pm
do you check the credit of ppl you are trying to collect from?
Yes.

Any debt above a certain amount (usually per client, but around $1000) and within a certain time period of the debt being owed, the acting agency usually puts an inquiry on your bureau.

Most use Trans Union.
Member
Oct 29, 2009
263 posts
5 upvotes
do banks sue people who default on credit card debt / line of credit debt or do they just write it off after a certain time period
[OP]
Sr. Member
Mar 8, 2009
612 posts
18 upvotes
Jucius Maximus wrote:
Nov 4th, 2009 10:01 pm
What is the statute of limitations on debt collection?
Depends what product, what Provence.

http://www.bankruptcycanada.com/limitationacts.htm gives you all the provences, but heres an example:

Ont: Before 2004, 6 years after last recognition of the debt. (Payment, $0.01 or otherwise) TO LITIGATE.
After 2004, 2 years after last recognition of the debt (Payment, $0.01 or otherwise) TO LITIGATE.

Even after either statute has expired, the creditors still have the availability to hire collection companies to call you and collect based on a MORAL obligation as opposed to a contractual one. They could even sell the debt, where the are no laws the govern the collection practices.
Newbie
Apr 8, 2009
76 posts
Vancouver
Do you get tired of the profanity spewed your way on a regular basis? :cheesygri
[OP]
Sr. Member
Mar 8, 2009
612 posts
18 upvotes
edwardalex wrote:
Nov 4th, 2009 10:06 pm
do banks sue people who default on credit card debt / line of credit debt or do they just write it off after a certain time period
2 Part answer here:

1. Litigaton

Yes. Banks sue. It LARGLY depends on a multitude of variables like:

-creditor
-amount
-secured/unsecured
-product (credit card, mortgage, line of credit)
-time outstanding
-your debt ratio
-where you live
-what assets you have, bank is aware of
-your credit history

Banks don't usually issue a statement of claim by themselves. They will use a collection agency who employ their own lawyers to do so. Sometimes the client will allow the collection agency to sue the consumer without asking the client, as per the clients work plan. This is 'Qualifying' the file.

2. Write off/Written off

Write off does not mean the bank/creditor doesn't want their money anymore. Write off means that the status of that specific open trade on your bureau has been defaulted on.

Fancy way of saying 'sent to collections'.
Member
Oct 29, 2009
263 posts
5 upvotes
Donomight25 wrote:
Nov 4th, 2009 10:19 pm
2 Part answer here:

1. Litigaton

Yes. Banks sue. It LARGLY depends on a multitude of variables like:

-creditor
-amount
-secured/unsecured
-product (credit card, mortgage, line of credit)
-time outstanding
-your debt ratio
-where you live
-what assets you have, bank is aware of
-your credit history

Banks don't usually issue a statement of claim by themselves. They will use a collection agency who employ their own lawyers to do so. Sometimes the client will allow the collection agency to sue the consumer without asking the client, as per the clients work plan. This is 'Qualifying' the file.

2. Write off/Written off

Write off does not mean the bank/creditor doesn't want their money anymore. Write off means that the status of that specific open trade on your bureau has been defaulted on.

Fancy way of saying 'sent to collections'.
I guess I meant for unsecured credit products. Is there any recourse for the bank if someone just decides not to pay?
[OP]
Sr. Member
Mar 8, 2009
612 posts
18 upvotes
doc79 wrote:
Nov 4th, 2009 10:12 pm
Do you get tired of the profanity spewed your way on a regular basis? :cheesygri
Someone wants to get mad at me because they owe money or have a dispute with my client?

I have a nice little red button that makes that person go away very quickly.

You wanna call me back over and over and over again?


I'll file a police report AND suggest to our client that they take whatever recourse they deem necessary.


Not my debt, not my credit and not my peace of mind. :razz:

To answer your question more professionally, no.
[OP]
Sr. Member
Mar 8, 2009
612 posts
18 upvotes
edwardalex wrote:
Nov 4th, 2009 10:22 pm
I guess I meant for unsecured credit products. Is there any recourse for the bank if someone just decides not to pay?
If you decide not to pay, the bank can (in this order):

Collect in-house. This means that the actual creditor is calling you ie. the bank.

Reposes the asset/close the line of credit, credit card or account.

Status your open trade as an R7-9.

Place the debt on your personal credit bureau as a collection account.

Place the debt with a collection agency.

Sue you. (This can be done on day 1 of the default, so this can happen anytime)
[OP]
Sr. Member
Mar 8, 2009
612 posts
18 upvotes
edwardalex wrote:
Nov 4th, 2009 10:25 pm
What is the average salary for a collections agent?
Depends on Provence, agency, clients they hold ect.

Usually around $2000 gross/mth to start, without experience.

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