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Difference between revisions of "Introduction to Debtors' Options (10:IV)"
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Introduction to Debtors' Options (10:IV) (view source)
Revision as of 05:03, 13 June 2016
, 05:03, 13 June 2016→C. Harassment by Debt Collectors
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A collector cannot communicate with a debtor at the debtor’s place of employment unless one of the following conditions is met: | A collector cannot communicate with a debtor at the debtor’s place of employment unless one of the following conditions is met: | ||
*a) the collector does not have the home address or telephone number for the debtor and the collector contacts the debtor solely for the purpose of requesting the debtor's home address or telephone number or both; | |||
*b) the collector has attempted to contact the debtor at the debtor’s home address or telephone number, but the collector has not contacted the debtor in any of these attempts (the collector is limited to one verbal attempt at the debtor’s place of employment (s 116(2)), meaning one call even if the debtor doesn’t answer or hangs up); or | |||
*c) the collector has been authorized by the debtor to communicate with the debtor at the debtor’s place of employment (s 116 (1)). | |||
When the collector is contacting the debtor, they must indicate the name of the creditor with whom the debt was incurred, the amount of the debt, and the identity and authority of the collector to collect the debt from the debtor (s 116 (3)). | |||
The collector must only contact a debtor through writing if the debtor provides a mailing address and notifies the collector in writing that they wish to be contacted only by writing. (s 116 (4)). If the debtor does not respond or make an effort to respond to the collector’s written correspondence, the collector can contact the debtor in other ways. | |||
In collecting or attempting to collect payment of debt, a collector must not supply any false or misleading information; misrepresent the purpose of communication; misrepresent the identity of the collector or, if different, the creditor; or use, without lawful authority, a summons, notice, demand, or other document that suggest or implies a connection with any court inside Canada (s.123). | |||
If a creditor does not obey the ''BPCPA'', the debtor may report the creditor to [http://www.consumerprotectionbc.ca Consumer Protection BC]. | |||
=== 2. Limits on Right of Seizure === | |||
Under s 122, no collector, whether on their own behalf or on behalf of another, directly, indirectly, or through others, shall: | |||
*a) unless there is a court order to the contrary, remove from the debtor’s private dwelling any personal property claimed under seizure, distress, or repossession, in the absence of the debtor, the debtor’s spouse, the debtor’s agent, or an adult resident in the debtor’s dwelling; | |||
*b) seize, repossess or levy distress against any chattel not specifically charged or mortgaged, or to which legal claim may not be made under a statute, court judgment, or court order; or | |||
*c) remove, seize, repossess, or levy distress against any chattel during a day or during the hours of a day when such removal, seizure, repossession or distress is prohibited by regulations under this Act. | |||
=== 3. Consequences of Contravention of the Business Practices and Consumer Protection Act === | |||
Where there is evidence of misconduct by the debt collector, the Director may suspend, cancel, or refuse to issue their license (s 146(1)). Such conduct includes (s 146(2)): | |||
*a) contravening this Act or regulations; | |||
*b) failing to meet the minimum requirements for a license; | |||
*c) conduct by the debt collector that shows that they are unfit to have a license; or | |||
*d) being convicted of an offence under Canadian law. | |||
=== 4. Legal Advice for a Harassed Debtor === | |||
If there may be a violation of the ''Business Practices and Consumer Protection Act'', the debtor should do the following: | |||
*a) find out the name of the collector and/or agency; | |||
*b) record the exact words or practice followed by the debt collector or the agency; and | |||
*c) detail the time and dates of the calls or visits. | |||
With the above information the debtor should contact Consumer Protection BC for the name of the complaints manager for the collection agency the debtor is dealing with. This complaints manager will work with the debtor to resolve the complaint, including disciplinary action, if appropriate. Their website is http://www.consumerprotectionbc.ca and includes resources regarding consumer and debtor rights, as well as dispute resolution. It also includes a form for registering a complaint with Consumer Protection BC. | |||
Finally, if the debtor suffered damages or inconvenience as a result of the agency’s collection practices, a Small Claims action may be commenced (s 171, 172). | |||
== D. Credit Reporting Agencies == | |||
Businesses offering goods or services on credit often rely on credit bureau reports for financial and prior debt information on their customers. | |||
The ''Business Practices and Consumer Protection Act'' regulates the activities of the credit bureaus in order to minimize unfair treatment of the party seeking credit. Federal legislation, such as the ''Personal Information Protection and Electronic Documents Act'' [''PIPEDA''] and the ''Privacy Act'', also outline the requirements for organizations in their use, collection, and disclosure of personal information in their business practices. Credit information that these bureaus can disclose is the most common type of personal information, and includes one’s: | |||
*a) name, date of birth and address; | |||
*b) current and former marital status; | |||
*c) current and former place of work; | |||
*d) payment habits; and | |||
*e) debts owing. | |||
'''A credit reporting agency cannot give out an individual’s personal credit report without that individual’s consent.''' When one seeks credit, they will be asked to consent to the lender obtaining a credit report or a credit check. (After consent is given, the lender can obtain a “soft check” periodically meaning they can view the report relating to their loans). | |||
Certain information cannot be included in a credit report, e.g., criminal charges (unless the individual was convicted), convictions more than six years old, and information about race, religion or political affiliation. | |||
Credit reporting agencies’ records are not always accurate and up to date. The quality and accuracy of the credit information depends on the credit information provided by the credit granting companies who sign up with the credit reporting agencies. If an individual finds incorrect information on their file, they can report the error to the agency that provided the information to have it corrected. If an individual has proof that their credit report contains an error and they are unable to resolve it with the creditor directly, the individual should contact the credit reporting agencies who are reporting the incorrect information. The agencies will assist them with finding a resolution. '''Any individual who is a victim of identity theft should immediately file a police report'''. The ''BPCPA'' allows individuals to provide a 100 word explanation to the reporting agency, which is to be kept and reported with their file (s.111); this may be a useful provision if a business has reported a disputed claim regarding the client, or if client is a victim of identity theft. Any victim of identity theft is recommended to post a comment on their credit report. This notifies creditors of the fact that the identity theft has taken place, and prevents additional credit being granted without a thorough review by the creditor. It is an offence (punishable by a fine of up to $10,000 or imprisonment for up to 12 months) to knowingly supply false or misleading information to a reporting agency (s 112). | |||
Consumers may obtain their own credit report for free at least once a year by telephoning the credit bureaus directly or completing the form available on their websites Alternatively, a consumer can obtain an instant credit report by using a credit card to pay a one time fee. | |||
There are currently two main credit reporting agencies in Canada, listed below. | |||
'''Equifax''' | |||
Toll-free: 1-800-465-7166 | |||
Website: http://www.equifax.ca | |||
'''TransUnion''' | |||
Toll-free: 1-800-663-9980 (English); 1-877-713-3393 (French) | |||
Website: http://www.transunion.ca | |||
'''NOTE:''' Individuals should check their credit history regularly. Industry specialists suggest once per year. Credit reporting agencies will send a person a copy of their credit history by regular mail for free. '''As each agency operates in a different matter, individuals are encouraged to request their credit history from both agencies, as they will likely be different.''' | |||
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