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DEBT COLLECTORS CALLING: COLLECTION AGENCY AFTER YOU?

debt, debt collector, debt collectors, collection agencies, collection agency, credit record, student loan debt, credit card debt, bankruptcy, trustee, debt collectors calling, starting over starting nowAre debt collectors calling? I recently read an article where the headline was 35% In US Facing Debt Collectors and it’s based on a study by the Urban Institute. This astonished me. How is it possible that 35% of Americans have debts and unpaid bills that have been reported to collection agencies? This means that one in three people in America is being hounded by a collection agency having their debt collectors calling for unpaid bills.

Imagine that one in three of your friends and coworkers are facing serious financial challenges and you probably don’t even know it. According to the study 35.1% of people with credit records had been reported to collections for debt that averaged $5,178, based on September 2013 records. The Association of Credit and Collection Professionals reports that healthcare related bills account for 37.9% of the debts collected. Student loan debt represents another 25.2% and credit card debt make up 10.1%. Other collections are monies owed to the government, retailers, telecoms and utilities. That is giving this industry a lot of work for their debt collectors calling one third of the American population!

This is not just an American problem although in Canada we are extremely fortunate that we don’t incur the amount of healthcare related debt that plagues the U.S. But that doesn’t make us immune from serious debt and debt collectors calling. According to an RBC poll which only measures non-mortgage debt such as credit cards, lines of credit and loans:

  • The average level of personal debt in Canada rose 21% per cent this year to $15,910
  • Albertans were the hardest hit with a 63% jump to $24,271 in debt
  • British Columbian personal debt loads went up by 38% to $15,549
  • Manitoba and Saskatchewan went up 32% to $16,145
  • Average debt in Ontario was up 13% to $17,416
  • Average debt in Quebec was up 3% to $10,458
  • Average debt was up in Atlantic Canada by 12% to $15,243

Before you get to the stage that the collection agencies are after you with their debt collectors calling, make an appointment with a professional trustee and deal with your debt; don’t hide from it. Contact Ira Smith Trustee & Receiver Inc. We help people everyday who are facing a financial crisis or bankruptcy that need a plan for Starting Over, Starting Now. Don’t wait, especially if the collection agencies are hounding you with their debt collectors calling, call us today.

Watch for our next blog when we’ll be discussing what to do if the collection agencies are after you with their debt collectors calling.

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Brandon Blog Post

YOUR CREDIT RATING CAN BE RUINED EVEN IF YOU DON’T DO ANYTHING WRONG

credit rating, credit score, collection agencies, collection agency, credit record, credit score mistakes, bankruptcy alternatives, Consumer Proposal, Bankruptcy, I came across this story not long ago about a man in Ontario who had his credit rating ruined by Rogers even though he has never had a Rogers account. I know this sounds unbelievable but Mr. Dave Johnson of Pembroke, Ontario has spent three years fighting a Rogers Bill that isn’t his. This story is a perfect example of why it’s so important that you are aware of your credit score and credit rating and check it periodically.

Rogers like many large companies outsources the collection of accounts that are in default to collection agencies. According to the Government of Canada you must be notified in writing that your file has been given to a collection agency. In this case Dave Johnson never received notification from the Rogers collection agency that his account was in default because he never had a Rogers account. Never-the-less, in 2010 he received a $5,400 bill from a Rogers collection agency working for Rogers Wireless. Mr. Johnson knew he wasn’t in arrears and contacted the collection agency letting them know that he didn’t have a Rogers account and that somewhere there was a clerical error. The collection agency seemed to be very reasonable and Mr. Johnson believed that the matter had been cleared up. Big mistake! The $5,400 debt to Rogers Wireless ended up on his credit record and as a result of this, leading to a poor credit rating:

  • He was turned down for credit cards.
  • He wasn’t allowed to co-sign for his son’s mortgage.
  • He couldn’t use the equity in his home.

In the process of trying to clear his name and restore his credit, and his credit rating, Mr. Johnson discovered that another man, also named David Johnson, has also been wrongly pursued for the very same bill. The reality is that the Rogers collection agency clearly didn’t have a file with accurate information of the debtor. They were going after anyone and everyone who had the same name, which unfortunately for the David Johnsons in Ontario, is quite common.

Rogers is not taking any responsibility for this problem. They are blaming the Rogers collection agency. In case you think that this is an isolated incident, CBC News received dozens of complaints last year about how collection agencies aggressively pursue unpaid debts. Howard Maker, Commissioner of Telecommunications Complaints, has confirmed that he is aware of this ongoing problem.

If you are being legitimately pursued by collection agencies because you’re experiencing serious financial difficulties and you are concerned about your credit rating, contact Ira Smith Trustee & Receiver Inc. We can help and Starting Over, Starting Now you will gain back your former quality of life. Watch for our next blog when we’ll be discussing Common Credit Score Mistakes.

Call a Trustee Now!