In credit report, there are 3 letters used. Letter "I" stands for installment credit which is for loans. Letter "O" stands for Open which is for open credit like line of credit. Letter R stands for revolving credit like for credit cards.

Number after letter has a meaning. Number- 1= Missed installments. Which means I1, O1 and R1 means perfect account. When a person misses 6 installments, then R5 may be applicable. Within these 6 month period, credit card companies try to contact the person to remind of overdue payment. If the person has left the country or moved without trace, only in those cases R5 is possible. In spite of trying and exploring all possible avenue, if the debtor is not responding only in such cases, R9 may be added by credit card company as bad debt or not possible to recover.

In this particular thread, we are discussing authority of collection agency to put R9 before small claims court or civil court proceedings as the case may be depending on amount.

Authority of collection agency to add R9 independently can be challenged.

Hey Floppy,
Have you done this, or can you provide precedent of this from the courts?!! That would be powerful!!

A person can dispute the claim of collection agencies. Inform the collection agency in writing about dispute and send a copy of that to the credit report agencies to have R9 removed till civil court formalities are completed.

A person can dispute the claim of collection agencies. Inform the collection agency in writing about dispute and send a copy of that to the credit report agencies to have R9 removed till civil court formalities are completed.

This will not cause any financial worries like getting higher mortgage rate when it comes for renewal.

I always ask people to get confirmation that the collection agency has the right to collect the debt.

Some how the debt was transferred to the collection agency, supposedly. I would heavily question the collection agency as to how they feel they have the right to collect you.

In my opinion, if the collection agency can't show you their contract with the original creditor, you shouldn't pay them. You don't know if the creditor has hired them or not. How would you know.?

Your contract was originally with the creditor / not the collection agency. If you're being collected you have to have given permission to the creditor to use a collection agency.

The premise of this thought is the following:
There is no law saying you have to deal with a collection agency. You would only have to deal with them if you signed a contract somewhere saying that you give the collection agency permission to collect you.

It's also important to remember that, if you're being collected, your credit report is going to show an R9 for that credit item. That's the worst notation you can get. You might as well take your time paying the collection agency if you have an R9 as the notation can't get any worse.

If a collection agency puts an R9 (which is really good to avoid if possible) on your credit report, I would advise that you take the time to learn about who gave the collection agency the authority to 1) collect you and 2) to put that information on your credit report.

My 2? worth

Joe- I take you as a representative of collection agency. Hence when I say you in my following line, it is not just you but all collection agencies.

Nobody disputes collection of valid debts through civil court process by getting judgement and wage garnishment. However, most collection agencies rarely follow them because of time and money which reduces your rate of return. Instead, collection agencies resort to threats.

Most common threats without even going to court are
1) Put debtor in jail
2) Publish list of debtors in newspaper
3) Inform employer and friends that debtor is not paying
4) Garnish wages from next month
5) Cancel driving licence
6) Take away your car and house
7) Force your landlord to evict you.

If a debtor keeps collecting data of such threats and go to the court in self defence, it most cases, the debtor wins due to psychological effect of these threats.

Tell me your data. Out of 100 cases, how many times you have gone to court to collect payments and how many times you have been successful by using some of above or other threats.

Floppy

Jan Romano:
It's always interesting to have input from a collection agent. I will reserve comment for the moment.

Unless you can guarantee that all collection agents in all companies around Canada are following the law with regards to collection agency activity, I would recommend that you reserve your comments.

BTW... do you actually know what the laws are for collection agents / agencies in your province.? Have you read them? Are you abiding by them?

BTW2.... are you properly licensed to collect?

By the sounds of your post, you're not well informed in the laws of Canada. Anybody who makes a blanket statement about "why people are complaining about collection agencies" is a little naive.

I don't understand why people are complaining about collection agencies. Its not their fault tha your not paying they are just doing their jobs. You think thy actually want to deal with angry people all day long because they don't want to pay what they put themselves into. I work for a collection agency and trust me i also have things to pay but i pay them and on time to. but we understand that you might not be able to pay right away but we signed papers saying that we need to call if you don't pay. Don't be embarresed by this because if you need help we can help. If your account is overdue more then 105 days its out of our hands. Your things might even be seized but not by us. We do have all your payment history and everything is written and electronically recorded. Every conversation is taped just incase. We are not allowed to tell you off but have every right to call you until you pay. Its like someone has somehting you own but you want it back and you keep calling them and they put you off or someone that owes you money and you want it because you need it you will call them and ask them when your going to get it back no? So thats my input thank you!