Can I sue a debt collection agency?

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In Canada, if a debt collector oversteps by misinforming you, harassing you, or disclosing your debt to others, you’re within your rights to sue. They’ll face consequences for breaking debt collection laws, and you might get damages while halting their unfair practices.

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Debt Collection Agency Question

Can I sue a debt collection agency? Can I sue a debt collection agency if they’re not following proper rules?

From: Anonymous Question
Location: Kelowna, British Columbia (BC)
Category: debt settlement

Debt Collection Agency Answer

Sure thing, you definitely have options here. If a debt collection agency in Canada is playing loose with the rules, you’ve got grounds to take action. We’re talking about them breaking federal or provincial laws, hounding you with harassment, playing dirty with unfair tactics, or feeding you false or misleading intel about your debt. Imagine them pestering your family or spilling the beans on your situation without your go-ahead—that’s totally out of line. These antics could be your ticket to suing them, where you might not only chase after damages but also put a stop to their rogue operations.

From: Insider Scott

Office of the Superintendent of Bankruptcy (OSB) Answer

Yes, you can sue a debt collection agency if they are not following proper rules. Under the Bankruptcy and Insolvency Act (RSC 1985, c B-3), particularly Section 178, individuals have the right to seek a remedy if a debt collector violates the applicable laws. Additionally, the Collection Agencies Act in various provinces outlines consumer rights and sets regulations that debt collectors must adhere to. If a debt collection agency breaches these regulations, you may be able to file a lawsuit based on those violations. Specific provisions may vary by province, so it’s essential to consult your local laws regarding this matter.

From: OSB Helper

Related Questions to Debt Collectors

Here are the top 5 most frequently asked questions related to dealing with debt collection agencies in Canada, formatted as requested:

1. Can a debt collection agency sue me?

Yes, a debt collection agency can sue you, but it is not a common practice due to the associated legal and court costs[2][4][5].

2. How long can a debt collection agency collect a debt?

A debt collection agency can attempt to collect a debt indefinitely, but they can only take legal action within the statute of limitations, which is typically 2 years in provinces like Ontario[2][4][5].

3. What are my rights when dealing with a debt collector?

You have the right to be treated respectfully, receive accurate information about the debt, and make complaints to the appropriate regulatory bodies if your rights are not respected[1][5].

4. Can I make a complaint about a debt collection agency?

Yes, you can make a complaint to the Financial Consumer Agency of Canada if the agency is associated with a federally regulated financial institution, or to your provincial consumer affairs office if the debt was sold to a collection agency[1].

5. How do I defend myself against a debt collection lawsuit?

You can defend yourself by filing a Statement of Defense within the specified time limit (e.g., 21 days in Ontario) and arguing that the debt is past the statute of limitations or other valid defenses[2][4].

If you have a question about debt see our debt questions or ask your own debt related question.

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