The Regulation of a Collection Agency
The Regulation of A Collection Agency
A collection agency must be registered in the Province of Ontario and there are rules to be followed during the process of collecting.
Firstly, the average person should now what exactly the purpose of a collection agency. They are a company that works on behalf the business that is owed money. Keep mind they collect bndebts; they are not debt counselors.
A collection agency must be registered in the Province of Ontario and there are rules to be followed during the process of collecting.
The rules are that a written notice to the person or business that owes money is sent out. The letter must include the name of the business that is owned money, the amount of money, the name of the collection agency and a statement that the business that is owed the money has asked the collection agency to recover outstanding funds. The collection has to wait 6 days before action to collect can take place.
This is the basic information regarding collection agencies in Ontario. There will come a time that your business will have client/s that are really late in paying their bill. You, or your office staff, have probably spent valuable time trying to get the offender pay. If so, the time may have arrived to look at hiring a collection agency to work on your behalf. You don’t want to “sit on” the chronic past due accounts. The longer you leave them, the likelihood of payment will take place. A collection agency specializes in debt recovery and their employees have the knowledge and training to deal with your clients that are in arrears. Don’t think that collectors will contact your clients in an unethical manner. The rules that are put in place each province to protect the collection agency, the business owner and their clients.
Collection agencies and their staff must follow the Collection and Debt Settlement Act. This clearly outlines what a collection agency can and cannot do while collecting funds. You will want to ask if the Collection Agency is insured. Ask if the collection agency you would like to hire has Professional Liability Insurance and ask if they have like insurance that provides coverage should the Agency get sued while working on your accounts. This type insurance is the agency’s responsibility, not yours.
Always keep in mind that the collection agency you hire is a reflection of your business. Ask what methods are used to actually perform the actual collection. The collectors need to be ethical and respectful to your clients. The discussion about the tactics used to collect will be very enlightening. At this point in your discussion, it doesn’t hurt to ask for references. Go Beyond Collection Agency will be more than happy to answer your questions. For instance, you may want to ask how long the collection process usually takes and what information the agency needs from you to get started on your delinquent accounts.
A Go Beyond is a leading debt recovery agency in Canada. Their professional team works with and for you all while adhering to Ontario’s regulations.
A Go Beyond Collection Agency Inc.
1-877-300-6006
