If you hire a debt settlement company in Canada and they forward a power of attorney to the collection agency, does that agency need to comply and cease all communication or do you have to be a lawyer to cease all calls. I was told that they have too, but the agency told me they don’t have to comply as the debt settlement company does not have a lawyer and that they can still call me.
Any help need to know asap, and if they have to cease all calls no matter what does anyone have the link to the laws where it states that, I cant find it myself
Canada has a patchwork of different collection agency laws and regulations. Probably the best place to look for information on things like the Collection Agencies Act is this page.
I’m not aware of any general regulation that would require a debt collector to have to accept the letter from the third-party debt settlement agency to cease communications with you.
At least in Ontario the Collection Agencies Act does say:
- If a debtor sends a collection agency or collector, by registered mail, a letter stating that the debtor disputes the debt and suggests that the matter be taken to court, the collection agency or collector shall not thereafter contact or attempt to contact the debtor, unless the debtor consents to or requests the contact.
- If a debtor or his or her lawyer sends a collection agency or collector, by registered mail, a letter requesting that the collection agency or collector communicate only with the debtor’s lawyer and setting out the lawyer’s address and telephone number, the collection agency or collector shall not thereafter contact or attempt to contact the debtor other than through the debtor’s lawyer, unless the debtor consents to or requests the contact. – Source
That would appear to generally follow what the debt collection agency stated.
Keep in mind that there is no strategy to effectively hide from a debt by trying to cease communications. Unless you and the collector/creditor can work out a mutually agreeable repayment plan the creditor may avail themselves of their rights under the law, including taking you to court.
A debt settlement company is a third-party injected into the mix here and is an agent of yours but has no power over the creditor or collector.
If you want protection from your creditors and stop collection calls then you are most likely looking for a different solution other than debt settlement. What you are probably looking for is either a consumer proposal, Consolidation Order or bankruptcy solution. You may want to seek a second opinion from a bankruptcy trustee in your area and review your situation.
Please post your responses and follow-up messages to me on this in the comments section below.