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- Mark O'Meara, Canadastudentdebt.ca



According to HRDC, collection agents are not allowed to be rude or abusive. They are not allowed to threaten legal action, as this can only be initiated by HRDC. In addition, they are required to accept payments. If these rules are not being followed, file a complaint with HRDC, noting the name of the company, date and time they called, name of agent and any other information.

Following is a accepted code of practice for Collection Agents. A collection agency or collector shall not, in an attempt to make collections,

  • where the debtor is an employee, contact the debtor by telephone, mail or in person at the debtor's place of employment;
  • contact the employer of the debtor without the debtor's consent;
  • contact the debtor between the hours of 10p.m. and 8 a.m.;
  • threaten to proceed with an action for which he or she does not have authority;
  • use coercive language, threaten loss of employment or loss of community ranking;
  • communicate in any manner with a debtor unless he or she has previously sent him or her a written notice;
  • make telephone calls or personal calls or written communications of a nature or frequency as to constitute harassment of the debtor, his or her spouse or a member of his or her family; or
  • except to obtain the debtor's address, communicate with acquaintances, friends, relatives or neighbours of the debtor, unless that person is surety for the debtor.
  • a collection agency, collector, person or firm acting on behalf of a collection agency when contacting a debtor by telephone shall immediately upon contacting the debtor identify itself as a collection agency and shall in no way use a device, comment or statement to infer otherwise.

NOTE: IF YOUR COLLECTION AGENCY COMPLAINT IS IN REGARDS TO A STUDENT LOAN, FILE YOUR COMPLAINT DIRECTLY WITH HUMAN RESOURCES DEVELOPMENT CANADA!

That gets the agency into hot water...Every time you file a complaint with HRDC, the collection agency loses some points on a performance grid.. Lose enough points on the grid, you lose the contract. Filing a complaint with HRDC can get them in hot water and hit their bottom line.

Send complaints to:

HRDC Collection Services
140 Promenade du Portage, Phase IV, 2nd Floor
Hull, Quebec K1A 0J9

Make sure that ALL documentation is included that will substantiate a complaint!

For other collection agency complaints, follow this link CAComplaints.asp

Dealing with Collection Agencies:

Overfrequent or unnecessary contact is a common occurence that happens to those who owe defaulted student loans.

Third party agency collectors are prohibited by HRDC to make any more than two seperate telephone contacts (this includes leaving messages on answering machines or with a third party) in a single day. No 3rd party collectors are to place more than five telephone calls in a given five-day stretch with a CSL client (or a client's authorized representative), unless the calls were agreed to in advance.

According to HRDC, collection agents are not allowed to be rude or abusive. They are not allowed to threaten legal action, as this can only be initiated by HRDC. In addition, they are required to accept payments. If these rules are not being followed, file a complaint with HRDC, noting the name of the company, date and time they called, name of agent and any other information.


Dealing with Collection Agencies

When being confronted by an "un-pleasant" agency collector, many people tend to exhibit anxiety, fear, and sometimes panic in their response. This is what collectors hope to achieve when they get you on the phone. It gives them the edge, so to speak, to control the conversation .. and the person they are calling. It is what many in the business sector would call "fear installation management". If a collector can somehow instill fear into the thoughts of a particular debtor, it will work to the collector's advantage. Historically, this is how they are trained, and also managed by their management figures in many cases. Collectors are under a constant microscope and pressure by their management. It is a cruel and unusual business.

So, many people avoid answering their telephone as a result of these burdens, and even have their calls screened. These occurrences are most irritating to collectors as you can imagine. They still continue to call, and torment whoever answers though. This is when the collector starts to break the rules as a result of frustration.

Responding to a collector's call is not easy in many cases because of anxious moments, or fear. The trick to overcoming these burdens is to not allow the collector to control you or the situation, and instead - control the collector - and the conversation. When this is achieved, the collector will usually hang up or start becoming "louder" in the hopes of regaining control. Again, this is where many more rules are broken in a desperate attempt to regain control over you.

So, when a collector calls you for the very first time, their tones are somewhat "monotone", or "authoritative". They identify themselves, their client, and proceed to set the pace for control. This is where you can over-turn their plan and take advantage.

When they begin their campaign of questions, they look for answers. They aim to ask questions that eliminate "yes and no" answers because they are trained that if a debtor is asked a direct question, then the answer can be returned as "NO" all of the time.

A collector will ask questions beginning with "where" "what" "Who" "When" and "why". They avoid asking questions that begin with "is" "do", or "can" because they will likely get a negative response.

Example:

"Mr. Jones, I have to update your financial information. Tell me, "Who holds your mortgage?" "Where do you work presently?" How much do you earn weekly/bi-weekly?" "Who is your immediate next of kin?" "What is your telephone number at work?"

By asking these questions, it pretty much eliminates a debtor from answering "yes and no", and acquiring the appropriate financial data to begin the manipulation, so to speak.

Example #2: (the power of "WHY")

"Mr. Jones, why have you not contacted your lending institution to see if you can consolidate?" "Mr. Jones, why have not contacted your bank to arrange financing?" Mr. Jones, why don't you simply utilize the credit available on your visa to pay out your student loan?"

In these examples, the collector will hear your response, and if they see it as negative, they can manipulate by using many tactics to press you. Legal activity is usually their edge.

The Collector is suggesting I get another loan to pay off this loan

Collectors use tactics to "press" you to borrow money for the purpose of paying out your CSL. First of all, pressing a CSL client to obtain a loan from any financial institution, family, friends, employers, etc., is prohibited, especially when such transactions will create further financial hardship. Collectors may suggest that you pay the entire balance, if this is determined possible, and at no risk to the CSL client, or ONLY if the CSL client OFFERS to do so on their own initiative.

Essentially, collectors are NOT allowed to refuse requests for installment arrangements. Also, collectors are REQUIRED to convey that the HRDC considers installment plans ACCEPTABLE and MUST therefore be ACCEPTED b the 3rd party agency - based on the return of a completed "Financial Questionnaire".

In most cases, collectors try to further manipulate by not addressing these matters and persistently press you to borrow. Also, in most cases, they tell you to "borrow, or else.. yadda yadda", and to call them back with "proof" that applications have been made, or the name(s) of the lending rep and institution. This is also prohibited by the HRDC per their given directives issued to the 3rd party agency.
Can I be sued?

... Yes, if the circumstances warrant such activity. Anyone can be sued, really. It is redundant to sue if there are no avenues of execution. With CSL, the rules are strict when it involves a "referral for justice". An agency can refer a CSL for justice, providing that all steps have been taken to secure a payment arrangement have been exhausted, and complete non-compliance on behalf of the loan debtor.

Will I be sued? The probability is very little for Provincial Student Loans and bank sponsored student loans. Due to the systemic problems that the banks have imposed on some of you, it could be easily argued.. and tossed if it ever had to be heard in a courtroom. For CSL, the chances are greater in the event that complete non-compliance is evident and documented.

Here are the directives regarding an agencies referral for justice policy delegated from the HRDC:

No CSL client shall be referred for justice by the PCA collector if:

• a payment has been received within 6 months prior to the referral

• the loan is becoming stats barred within 12 months of the referral

• all of the necessary collection letters have not been issued, and one final call to secure a payment arrangement

• the CSL client is not gainfully employed

• There is no documentation or substantiation of a CSL client's refusal to pay

• A financial assessment and capacity form has been returned detailing hardship and disability; including all proof for substantiation

• the account placement to the agency is less than 6 months old

The Collection Agency is threatening to sue me over Canada Student Loan.

Your CSL (issued by HRDC) cannot be sued by the agency. It can only be referred back to the HRDC for justice in the event that non-compliance is determined. As for the other student loans, they have to get permission from the bank or province to do so.

The Collection Agency Won't Accept Payments

This collector can accept payments however he/she would rather press you to pay it out so he/she can collect the commission tagged to the account. They are not following HRDC directives if they refuse to accept payments.

Can the Collection Agency Contact my family, my work, my friends?

No! This is clearly illegal!

Collection directives issued by the HRDC, state that if a CSL client requests in writing that no verbal communications are to take place, then the account is to be a) referred to HRDC for review. In the event that there is a dispute, or a complaint b) placed on a hold desk until further notice or instruction by the HRDC c) placed on hold with whatever payment arrangements are offered, or held in the holding section in the event that inability to repay at this time is substantiated and determined.
How many times can they call me?

Over frequent or unnecessary contact is a common occurrence that happens to those who owe defaulted student loans.

Third party agency collectors are prohibited by HRDC to make any more than two separate telephone contacts (this includes leaving messages on answering machines or with a third party) in a single day. No 3rd party collectors are to place more than five telephone calls in a given five-day stretch with a CSL client (or a client's authorized representative), unless the calls were agreed to in advance.

Do they have the right to be abusive?

No! According to HRDC, collection agents are not allowed to be rude or abusive. They are not allowed to threaten legal action, as this can only be initiated by HRDC. In addition, they are required to accept payments. If these rules are not being followed, file a complaint with HRDC, noting the name of the company, date and time they called, name of agent and any other information.
The Collector Claims to know my “banking history”

This is a notorious psychological tenderizing tool that they use. They have no clue what goes through your account. They just pretend to know that. The fact is that most people in collection situations don't have a lot of cash flow. It is a common tactic used by more experienced collectors. They catch people off guard by saying these things because it is common sense to the equation. The tactics are rather illegal.