Debt collection agencies need more oversight, credit counsellor says
'Horror stories' about intimidation, bullying prompts call for changes
At least two kinds of businesses are booming during the economic downturn — credit counselling and debt collection agencies.
Nadia Graham, with the Credit Counselling Society, says in the past year the Calgary office has had to double its staff with clients owing, on average, more than $30,000.
Debt collection agencies are busier too, and that has Graham calling for more government oversight.
"I have heard some real horror stories about debt collectors and some of the tactics that they've employed," she said.
Graham says those stories include intimidation and bullying.
"[One] debt collector was saying he was a police officer and the employee was being investigated for fraud," she said.
Graham's position is echoed by the Public Interest Advocacy Centre (PIAC) in Ottawa.
Earlier this week, it released a report recommending calling for enhanced protection for consumers and greater guidance for debt collection agencies.
"New rules are required to level the playing field between consumers with debt and the debt collection industry in Canada," said PIAC spokesman Jonathan Bishop in a release.
PIAC says calls between debt collectors and consumers should be recorded, collection agencies should be required to be transparent about the complaints against them, and there should be universal standards for written notices of a debt before debt collection calls can commence.