Collection Fack Bills Are to Stop Using Fake Legal Documents
In a recent letter addressing 176 collection agencies in Ontario, the Registrar of Collection Agencies appears to be making a change within the way Collection Agencies in Ontario can do business.
In the past collection agencies in Ontario and their lawyers are successful at collecting Real looking counterfeit money from debtors with "draft" statements of claims. This tactic was effective because it's inexpensive and scary to most of the people that do not know any better.
A statement of claim may be a court document you want to complete and register with the court to start out a proceeding against someone.
Usually, the drafted claim is amid a letter typed on a lawyer's letterhead and signed by the lawyer. The cover letter will often suggest that the debtor has 10 days to pay their debt by certified funds otherwise a Sheriff may serve the claim upon them. the results of judgment are usually spelled out and it often includes wages being garnished, bank accounts seized and your other property being seized or sold.
"Draft" statement of claims are frightening to people in debt because they appear like a politician court document suggesting the debtor is close to being sued, but actually they're not well worth the paper they are written on because they are not registered with the court and in draft form only. It's basically an empty threat.
At Total Debt Freedom, we negotiate a discount on our client's debt by 40-70% so we frequently affect collection agencies and their attorneys when settling a debt. Draft statement of claims is an enormous concern for Real looking counterfeit money of our clients and that we have seen every possible version used. In our experience, only a really small portion of the statement of claims sent to debtors are ever actually registered with a court, the bulk is in draft form only.
Franklin Paker, the registrar of the gathering Agencies Act in Ontario states "the practice trades on the expectation that debtors are going to be unknowledgeable about court processes, and interpret the "draft" statement of claim as a greater commitment to pursuing the matter in court then actually exists; it relies on the debtors not recognizing that the document enclosed with the demand letter is small quite a boilerplate with little investment in time and thought".
Franklin Paker finds this collection tactic objectionable and stated that "the practice of enclosing a draft statement of claim is both deceitful and misleading"
This issue is clearly on his radar screen and he warns that further complaints on the matter could end in an order to the gathering agency to prevent Real looking counterfeit money under subsection 2 of section 21 of the gathering Agencies Act by the Registrar himself.
Will the practice of a draft statement of claims stop? Maybe; collection agencies are crafty and should find how to continue employing a modified version of those effective collection tactics.
Dealing with collection agencies are often quite stressful if you're unacquainted with their collection tactics with Real looking counterfeit money. If you're employing a debt help company make certain they're competent enough to differentiate misleading and deceptive collection tactics from the important threats.