How to Deal with Debt Collectors in Alberta
Your phone rings — again. You already know who it is. A debt collector demanding payment, another reminder of something you can’t afford right now. You’re at work, picking up the kids, or just trying to get through the day without any time to figure out how you’ll pay the past-due bills, but you know ignoring the calls won’t make them stop…
Understanding your rights and knowing your options gives you the power to push back when debt collectors just won’t stop. Bills piling up can feel like a losing battle, but knowing your legal rights helps you take charge and stress less about your money.
Stop Collection Calls and Take Control of Your Debt
In Alberta, debt collectors must follow strict laws that protect you from harassment and unfair collection practices. If you have a credit card debt, personal loan, or utility bill that has been sent to collections, knowing how to stop collection calls, fight back against incorrect claims, and strike a deal that actually works for you is essential.
This guide will walk you through:
- Your rights when dealing with collection agencies in Alberta
- What debt collectors can and cannot do
- How to stop collection calls legally
- Debt repayment options, including debt consolidation plans
Debt Collection in Alberta Info You Need to Know
A debt collector is a third-party agency hired by a creditor to recover unpaid debts. They contact you through phone calls, emails, letters, or even in person to collect overdue payments.
Debt collectors in Alberta can pursue:
- Unsecured debts such as credit cards, personal loans, cell phone bills, and utility bills
- Secured debts like car loans and mortgages follow different legal procedures
Debt collection agencies must follow Alberta’s Consumer Protection Act and Fair Trading Act, enforced by Service Alberta. These laws ensure ethical collection practices and prevent consumers from being harassed, intimidated, or misled.
Your Rights When Dealing with Debt Collectors
Debt collectors cannot contact you:
- Before 7 AM or after 10 PM on weekdays
- Before 1 PM or after 5 PM on Sundays
- At work, if you request they stop
Debt collectors are not allowed to:
- Threaten you with jail or legal action they cannot take
- Harass, intimidate, or use abusive language
- Lie about how much you owe
- Contact your employer, family, or friends about your debt only for contact information
How to stop debt collection calls:
You can legally stop collection calls by sending a written request asking for all communication to be in writing. This does not eliminate your debt, but it restricts how collectors can contact you.
How to Handle a Debt Collection Call
Step 1: Gather Information
- Ask for the collector’s name, company, and details of the debt
- Request written proof before making any payments
- Check if the debt is valid and within Alberta’s statute of limitations (two years for unsecured debts)
Step 2: Negotiating a Payment Plan
If the debt is legitimate, you can:
- Request a written repayment agreement
- Negotiate a lower settlement
- Set up a payment plan that fits your budget
Step 3: What If You Dispute the Debt?
If you believe the debt is inaccurate, send a written dispute letter requesting verification. If the collector cannot prove the debt is valid, they cannot continue collecting. You can also file a complaint with Service Alberta.
Consequences of Ignoring Debt Collection Calls
A debt sent to collections negatively impacts your credit score and can stay on your credit report for up to six years from the date of the last payment. If you ignore collection calls and don’t pay your debt, your creditor might sue you and take you to court. If they win the case, the court will issue a judgment against you. This means your creditor has legal permission to take further action to get their money back.
Depending on your situation, they can:
- Garnish your wages — This means money will automatically be taken from your paycheque before you even receive it.
- Freeze your bank account — Your bank may be ordered to hold your money, stopping you from withdrawing or using it.
- Take back your property if the debt is secured — If you don’t make payments on a secured debt, like a car loan or mortgage, the lender can take back the item you borrowed money for without going to court. But if the debt is unsecured, like a credit card or payday loan, the lender must sue you and win before they can take any belongings that aren’t protected by law.
To prevent legal action and avoid insolvency, consider debt repayment options like the Orderly Payment of Debts (OPD) program or consumer proposal in Alberta. Insolvency through a Consumer Proposal or Bankruptcy should be a last resort.
Sick of Debt Collectors? Here’s How to Make Them Vanish
The Orderly Payment of Debts (OPD) Program
OPD isn’t just another debt solution — it’s your financial reset button. Instead of drowning in overdue bills, OPD tidies everything into one simple, predictable payment. You won’t be juggling creditors anymore or ignoring relentless calls — just a straightforward plan to make your debt disappear the right way. Here’s why OPD is the real deal:
- Combines debts into one manageable payment
- Fixes your interest rate at 5%
- Stops collection calls and legal action
Credit Counselling Services with Money Mentors Alberta
Money Mentors provides free financial assessments and budgeting assistance to help with managing debt effectively.
Debt Management vs. Debt Settlement
- Be cautious of high-fee debt settlement programs that make big promises but don’t guarantee results.
- Work with us at Money Mentors Alberta for safe, legal debt repayment options.
Debt Repayment Options to Stop Collection Calls
Step 1: Assess Your Financial Situation
- Create a budget to determine what you can afford to pay.
Step 2: Know Your Rights & Document Everything
- Keep a record of all communication with debt collectors.
Step 3: Reach Out for Help
- Contact Money Mentors Alberta for a free consultation to explore debt repayment options.
Alberta Debt Help is Here — Let’s Take Back Control
Dealing with debt collectors in Alberta can be intimidating, but remember, you have rights and options. Whether you need to stop collection calls, negotiate a payment plan, or explore debt consolidation plans, taking informed action is your best strategy.
If you’re struggling with debt repayment, Money Mentors Alberta can help you find a debt relief program that fits your financial situation.
📌 Contact Money Mentors today for a free consultation and start your path to financial stability.
