Introduction
Receiving a call from a debt collector can be stressful, but understanding your rights and having a plan can make the process easier to navigate. Many Canadians struggle with overdue debts, and while collection calls can feel overwhelming, there are ways to manage them effectively.
At Pyxis Solutions, we work with individuals whose debts we have acquired, offering realistic repayment solutions instead of aggressive collection tactics. This guide will help you handle debt collection calls calmly, protect your rights, and explore options for managing outstanding debts.
Understanding Debt Collection in Canada
Debt collectors in Canada are legally permitted to contact individuals about outstanding debts, but they must follow specific regulations under provincial laws and the Collections and Debt Settlement Services Act.
What Debt Collectors Can and Cannot Do
They CAN:
- Contact you by phone, email, or mail to request payment.
- Discuss payment arrangements.
- Take legal action if necessary, but only after proper notification.
They CANNOT:
- Harass or threaten you.
- Call at unreasonable hours (before 7 a.m. or after 9 p.m. in most provinces).
- Contact your employer, friends, or family about your debt, except in specific circumstances.
- Misrepresent themselves or provide false information about your debt.
Knowing these rights can help reduce the stress of receiving collection calls and prevent unnecessary panic.
Steps to Handle Debt Collection Calls Effectively
1. Stay Calm and Gather Information
When a collector calls, take a deep breath and approach the conversation with a clear mindset. Ask for:
- The name of the collection agency.
- The name of the creditor (who the debt was originally owed to).
- The amount owed, including interest and fees.
- A breakdown of the debt’s history.
Avoid admitting to the debt or making a payment on the spot before verifying the details.
2. Verify the Debt Before Taking Action
Debt collectors sometimes contact individuals about debts that have already been paid, are inaccurate, or are too old to be collected. Request written confirmation of the debt before agreeing to any repayment.
If the debt is older than six years (or two years in some provinces), it may be past the statute of limitations, meaning collectors cannot take legal action to recover it. However, acknowledging or making a payment on an old debt may reset the time limit, so always verify before acting.
3. Keep Records of All Communication
Document every interaction with debt collectors, including:
- Date and time of the call.
- The name of the collector and agency.
- Details discussed during the call.
If you receive letters, emails, or voicemails, keep copies as proof of communication. This can protect you in case of disputes or legal issues.
4. Set Boundaries for Communication
If collection calls are becoming overwhelming, you have the right to request that collectors contact you in writing instead of by phone. Send a written request via mail or email, keeping a copy for your records.
If the collector continues to call aggressively or outside permitted hours, report them to the consumer protection office in your province.
5. Avoid Immediate Payments Without a Plan
Debt collectors may pressure you to make payments immediately, but take time to evaluate your financial situation first. Making an uninformed payment could:
- Reduce your ability to pay other essential expenses.
- Reset the statute of limitations on old debts.
- Be difficult to sustain if you don’t have a long-term repayment strategy.
Instead, review your budget and explore all options before committing to any payment plan.
What to Do If You Can’t Afford to Pay
If repaying the full debt is not feasible, consider these alternatives:
1. Negotiate a Settlement
Debt collectors may be willing to accept a reduced amount as a lump-sum payment. Ensure any settlement agreement is provided in writing before making a payment.
2. Set Up a Payment Plan
If a lump-sum payment isn’t possible, discuss structured payment arrangements. Make sure the agreed-upon payments are manageable within your budget.
3. Explore Debt Relief Options
If you have multiple outstanding debts, consider:
- Debt consolidation loans to combine multiple debts into one lower-interest payment.
- Credit counseling services to create a structured repayment plan.
- Consumer proposals to legally negotiate reduced debt amounts with creditors.
Debt relief solutions can help reduce financial stress and prevent future collection calls.
How Pyxis Solutions Helps Individuals Facing Debt Collection
At Pyxis Solutions, we take a different approach from traditional debt collection agencies. If we have contacted you, it means we have acquired your debt from a previous creditor. Instead of using aggressive collection tactics, we work with individuals to develop manageable repayment solutions.
Why Choose Pyxis Solutions?
- Flexible repayment plans tailored to your financial situation.
- Lower repayment amounts in some cases, helping to ease financial strain.
- No harassment or pressure, just a commitment to helping individuals find a way forward.
- Financial education and support to prevent future debt challenges.
If you have been contacted by Pyxis Solutions, we are here to help—not to add stress.
Final Thoughts: Regaining Control of Your Debt
Debt collection calls can be intimidating, but understanding your rights and having a strategy in place can make a significant difference. By verifying debts, setting communication boundaries, and exploring repayment options, you can manage collection calls with confidence.
If you are struggling with outstanding debt, you don’t have to navigate it alone. Pyxis Solutions offers realistic repayment solutions designed to help individuals move toward financial stability.
Call us today: 1-888-354-8900
Visit us online: PyxisGroup.org
Taking control of your financial future starts with the right information and support. Let’s find a solution that works for you.