What is a collection agency and how do I deal with it?
A collection agency is an organization that obtains or arranges for payment of money owed to a third party; this could be a person or a company. If you’ve been notified in writing that an account has been turned over to a collection agency, don’t panic. The agency isn’t in business to make life unbearable for you — its management just wants to collect the money you owe its client. What Should You Do If a Collection Agency Comes Calling? • If possible, pay the money you owe. You won’t have to deal with the agency once the account has been cleared. • If it’s impossible for you to pay the full amount at once, contact the agency, explaining why. Offer some alternative method of repayment, either in a lump-sum or a series of monthly payments. Follow up in writing and, if possible, enclose a good-faith payment. • Never send cash. Always make payments in such a way that you have a receipt — either a cancelled cheque from your own bank or a receipt from the agency. • Once the account has been
