Here are some ways to deal with collection agencies and a synopsis of your rights under the law. They can get away with this because consumers are naive when it comes to the limits of a collection agent's power and their own rights. Almost every type of organization uses collection agencies. The government, at all three levels, are perhaps the biggest users. For example, there are currently 130,000 defaulted student loans in the hands of collectors.
Collection agencies act as an extension between the creditors and their debtors.
Collectors in these agencies are usually paid a combination of salary and commission. According to a report done by Venture, each collector has a daily quota in dollars which they have to reach before they start taking a commission or bonus. Regulations as to who can be an agent are very simple. In Ontario, an applicant must be 'financially responsible' and pass the 'honesty and integrity' test. According to the register for collection agencies, honesty is measured by ensuring the applicant completed the application process honestly.