Debt Collection Agency in Quebec: What Are Your Rights and How to Stop the Calls?

Unexpected collection calls can be stressful when you already feel anxious about debt. But in Quebec, rules are in place to prevent these calls from becoming too intrusive. In this article, we explain your rights when dealing with collection agencies, and we tell you about the solutions that can help you get out of debt… and stop collection calls for good!

What Is a Debt Collection Agency?

When a creditor (bank, public utility company, vehicle lessor, etc.) is unable to obtain the payments agreed upon in the contract, they may decide to hand over this task to a collection agency. These agencies also intervene to try to recover unpaid tax debts, whether for the Canada Revenue Agency or Revenu Québec.

What Are Your Rights Against a Collection Agency in Quebec?

Call Hours

It is the Office de la protection du consommateur (OPC) that issues licences to collection agencies and dictates the rules they must follow. The law in Quebec (Act Respecting the Collection of Certain Debts) is clear regarding the hours during which a collection agency can call you. These rules (found in the Civil Code of Quebec) require that calls be made between 8 a.m. and 8 p.m. on weekdays, and between 9 a.m. and 5 p.m. on Saturdays. Otherwise, it is illegal and the agency is liable to sanctions.

Harassment

Collection agencies cannot harass you by calling at hours not permitted by law. They also cannot make threats or put excessive pressure on you. If you feel that the agency is harassing you, you can file a complaint with the Office de la protection du consommateur and the Commission des droits de la personne.

Communication With Your Loved Ones or Your Employer

Collection agencies cannot contact your friends, family, or employer to obtain information about your financial situation. They can only do so to obtain your exact name (if you use another name), your contact details, or your address (if you have moved). They may also contact your loved ones or your employer if they have reason to believe you have committed fraud. But this must be done within a specific legal framework (often with a court order). Collection agencies also cannot disclose information about your debt without your consent.

What Collection Agencies Can (or Cannot) Do

What is legal: Collection agencies can contact you to try to remind you to pay a debt. They can negotiate a partial payment with you or offer you a repayment plan with monthly payments. They also have the right to file a complaint in Court to try to recover the amounts owed to your creditors. In the event of a judgment, wage or asset seizures may be ordered (in certain cases).

What is illegal: In Quebec, certain practices by collection agencies are illegal. For example:

• Threatening you with violence;
• Telling you that you could go to prison;
• Asking you to pay more than the debts you owe;
• Sharing information about your debt with third parties without your authorization;
• Using aggressive methods to intimidate you.

If you are a victim of these practices, report it immediately to the Office de la protection du consommateur or to a lawyer.

How to Stop Collection Calls?

If you are tired of incessant calls, several options are available to put an end to them:

Request that calls stop: you have the right to ask the agency, in writing, to stop calling you. Once you have made this request, the agency must respect your wishes.

Negotiate a repayment plan: if you are unable to pay the full amount requested by the due date, you can negotiate a payment plan with the collection agency. This solution puts an end to the pressure of calls and follow-up letters.

Consumer proposal: if you are in a difficult financial situation, a consumer proposal may be an option to consider. This legal debt solution is managed by a licensed insolvency trustee and allows you to reduce part of your debt and cancel the interest. This stops collection calls immediately.

Bankruptcy: bankruptcy is another option that allows you to get out of unmanageable debt. It puts an end to collection calls, but it has long-term consequences for your credit file. It is therefore important to fully understand the implications of this solution before making a decision.

These legal steps are sometimes necessary to resolve a collection situation and help you get out of debt. A licensed insolvency trustee can guide you through this process.

The Consumer Proposal as a Solution

The consumer proposal is an alternative to bankruptcy for people with a stable income. It allows you to propose a repayment plan to your creditors (generally a monthly payment without interest and a reduction of the overall amount of debt). The creditors then decide whether they accept the proposed terms or renegotiate the plan. When the consumer proposal is accepted, all collection agencies must stop their calls. You will be protected by law and can focus on managing your finances. You obtain immediate peace of mind.

When to Consult a Licensed Insolvency Trustee?

If you find yourself in a financial deadlock, it is important to consult a trustee, such as GOBEIL GROUPE CONSEIL. We will be able to analyze your situation and determine whether a consumer proposal, debt consolidation, or bankruptcy would be viable solutions for you. Contact us to book a free consultation (by phone, in-person meeting, or video conference). We will help you understand the consequences of each option and choose the solution that will allow you to get back on solid financial footing. Our services are free of charge and everything can be done remotely.

FAQ

Can a collection agency call me every day? No, a collection agency cannot call you every day. It must respect specific schedules and must not harass you.

Can it contact my employer? No, a collection agency cannot contact your employer, except in specific situations and only within the legal framework.

Can I refuse to answer? Yes, you are fully within your rights not to answer calls from collection agencies. However, this will not resolve the situation and it is advisable to settle the debt or find a legal solution such as the consumer proposal.

How do I stop collection calls? By negotiating a payment plan, by requesting in writing that collection calls stop, or by choosing a solution such as the consumer proposal or bankruptcy.

Book Your Free Call!

Don’t live in fear of collection calls. Take control of your situation today! Fill out our contact form to book a free consultation and explore the solutions that can help you regain financial stability. Don’t let your debts weigh you down: solutions exist.