Published on July 23, 2014
Who are these people making collection calls? : Who are these people making collection calls? by Mark Silverthorn – Former Collection Lawyer and Collection Industry Insider Collectors employed by your creditor: Collectors employed by your creditor For the first three to six months your payment is overdue staff employed by your creditor will call you seeking payment of your account. Large creditors have massive in-house collection departments, employing hundreds of collectors. Your creditor ’ s in-house collection department might be located in a single location or it could operate out of three or four regional call centres located across the country. Those unpleasant calls from a collection agency: Those unpleasant calls from a collection agency Once your debt is six months old the person calling demanding payment from you will likely be a collector at a collection agency. A collection agency , is a company, licensed and regulated under provincial law, that collects debts on behalf of others. The collection agency is the collection agent for your creditor and it has the right to contact you and demand payment for a debt as long as it complies with the law. The collection agency is working for the creditor on a commission basis and it receives a percentage of any monies recovered from a consumer. Collection calls made after your original creditor has sold your debt: Collection calls made after your original creditor has sold your debt Your original creditor is the company that provided you with goods, services, or credit. At some point your original creditor might decide to sell your debt. A debt buyer is a company that purchases debt owed to others—and a debt buyer might buy thousands, tens of thousands, or even hundreds of thousands of debts in a single transaction—and one of these debts might be yours. A debt buyer purchases debt at huge discounts, sometimes for less than one cent on the dollar. A debt buyer that purchases your debt steps into the shoes of the company it purchased it from and, therefore, it obtains the right to collect the debt from you. For more on Bankruptcy…: For more on Bankruptcy… Please visit Bankruptcy-Canada.ca About Mark Silverthorn : About Mark Silverthorn Mark Silverthorn is a former collection lawyer and collection industry insider. He is the author of The Wolf At The Door: What To Do When Collection Agencies Come Calling (2010) published by McClelland & Stewart.