How do you stop calls from debt collectors?

Understanding your rights, knowing how to communicate effectively with collectors, and exploring options for managing or reducing your debt are all ways that can help you break free from these calls.

Debt collectors have rules to follow

In Canada, debt collectors must adhere to specific rules to protect your rights while they seek repayment. Here’s what you need to know:

When can debt collectors contact you?

Debt collectors can only reach out during specific hours:

• Monday to Saturday: Between 7:00 a.m. and 9:00 p.m.
• Sunday: Between 1:00 p.m. and 5:00 p.m.
• They cannot contact you on holidays.

How often can debt collectors contact you?

The number of times a debt collector can contact you varies depending on your province or territory. While the specifics differ, debt collectors must follow the rules set by your local consumer protection laws.

For example:

• In Ontario, Alberta and Nova Scotia, a debt collector can contact you up to three times within a seven-day period after their initial communication.
• In British Columbia and Quebec, collectors can’t repeatedly contact you in a way that would be considered harassment.

Most provinces have similar rules to ensure that debt collectors cannot overwhelm or harass you with constant calls. If you feel you’re being contacted too often, check the rules in your province or territory.

You must speak to the debt collector in order for it to count as being contacted. Not answering your phone will not count, unless the debt collector leaves a voicemail, which they are not required to do.

Who can debt collectors contact?

Debt collectors can only contact your friends, relatives, neighbours, or employer to obtain your phone number or address. There are exceptions to this rule:

• If someone has co-signed or guaranteed your loan, they may be contacted
• Collectors can contact your employer to confirm your employment
• If you’ve given consent for the collector to contact someone, they can do so

If you provide verbal consent, the collector must confirm it in writing without delay.

Knowing these rules empowers you to hold debt collectors accountable. If they break these rules, you may have grounds to file a complaint with your province’s Consumer Affairs office. You can also contact the Financial Consumer Agency of Canada to submit a complaint.

How to stop debt collector calls

There are a variety of ways to stop calls from debt collectors. Which is right for you will depend on your own situation. 

Negotiate with the debt collector

One way to stop calls from debt collectors is by negotiating an agreement to repay the debt. Often, collectors are willing to settle for less than the full amount you owe. This can be a viable solution if you’re able to make a lump-sum payment or agree to a manageable payment plan.

Always be upfront with the debt collector, tell them you are unable to pay the full amount but make them an offer stating what you can afford to pay. A good rule of thumb is to offer 30% less than what you owe.

If they accept what you offer, then you can work out the payment plan with them, either a lump sum or monthly payments. 

It’s possible they’ll reject your offer but offer their own counter proposal. You can then either chose to accept this offer or try to negotiate something in between your offer and theirs. 

Do not agree to anything unless you know you can afford to pay it. Agreeing to an amount you can’t pay will only lead to more financial stress and future calls from the collector. Be clear and honest about your financial situation and stick to what you can commit to.

Always insist on getting the agreement in writing before making any payments. Written documentation protects you if there are disputes later and ensures both parties are clear about the terms.

File a consumer proposal

In Canada, a consumer proposal is a formal debt solution filed with the help of a Licensed Insolvency Trustee (LIT). It allows you to negotiate a settlement with your creditors to repay only a portion of what you owe. A consumer proposal could reduce the amount you owe by up to 80%.

Debt collectors can no longer call you once you file a consumer proposal. This is because a proposal issues a “stay of proceedings,” which makes it illegal for debt collectors to contact you.

There are both pros and cons of filing a consumer proposal.

PROS:

• A Licensed Insolvency Trustee will negotiate with all your creditors, so you only have to repay a portion of your debt
• You do not have to surrender any assets to your creditors, you will not lose your home
• Interest charges stop as soon as the proposal has been filed
• You will make one monthly payment on your debt; there are no additional fees required

CONS:

• A consumer proposal doesn’t eliminate all your debts overnight; it can take up to five years to become debt-free
• Secured debt (mortgages or car payments) cannot be included in a consumer proposal
• A consumer proposal will appear on your credit rating for at least three years after you’ve repaid your debts—it can affect your credit for six years from the date of your filing
• A consumer proposal cannot be filed for debts greater than $250,000

File for bankruptcy

In Canada, a bankruptcy is another formal legal process designed to help individuals eliminate their unsecured debts, such as credit card or personal loan debt, when no other debt relief options are feasible.

A “stay of proceedings” is also issued by filing for bankruptcy, stopping debt collectors from calling you.

Bankruptcy is considered a last resort and is typically only used in extreme cases where someone is unable to repay their debts through a consumer proposal or other means. Only 22% of insolvencies in Canada in 2024 required bankruptcy. The remaining 78% were handled with consumer proposals. 

Filing for bankruptcy must be done with a Licensed Insolvency Trustee, who will guide you through the process and ensure that debt collectors stop contacting you.

While bankruptcy provides significant relief by wiping out most unsecured debts, it comes with serious consequences that should be carefully considered.

There are both pros and cons to filing for bankruptcy:

PROS:

• Filing for bankruptcy immediately stops collection calls and legal actions, providing relief from creditor harassment.
• Most unsecured debts, such as credit card debt and personal loans, are eliminated.
• You do not lose everything. You can keep certain exempt assets, depending on the province you live in (e.g., necessary clothing, tools of trade).
• The process can be completed relatively quickly—typically 9 months for a first-time filer with no surplus income.

CONS:

• You may lose some assets, such as investments or non-exempt property, which will be sold to pay your creditors.
• Bankruptcy damages your credit rating, and the record will stay on your credit report for up to 7 years more after discharge.
• It doesn’t eliminate secured debts, like mortgages or car loans, or some types of debt, like child support or student loans (in certain cases).
• Filing for bankruptcy may involve additional payments if your income is above a certain threshold (called surplus income payments).

Bankruptcy should only be considered after exploring all other debt relief options, such as a consumer proposal. Most people can resolve their financial challenges without filing for bankruptcy.

We can stop debt collectors from calling

If you’re feeling overwhelmed by debt collector calls, we can help. A Licensed Insolvency Trustee at BDO can help you take control of your financial situation and find a path to becoming debt-free. They can help you end the calls from debt collectors and put you on a path to financial stability.

They'll review your situation and help you find the right option for you. 

Your first consultation with a LIT is free and confidential. LITs are federally regulated professionals who specialize in helping individuals manage their debt and take a judgment-free approach helping you find relief from debt.

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