2. Illegal debt collection activities

2. Illegal debt collection activities

Debt collection agents must act within the law and refrain from illegal and improper tactics when conducting debt collection activities. 

Debt collection agents must not resort to intimidation or violence, either physical or verbal, against any person. They should not employ harassment or improper debt collection tactics such as:

Harassment tactics

• Putting up demand letters with the debtor’s details on the walls of the debtor’s residence or in public areas; 
• Mailing or faxing demand letters to the debtor’s employer or neighbours; 
• Pestering the debtor with persistent phone calls, messages and communications; 
• Making telephone calls at unreasonable hours; and
• Pestering the debtor’s and the guarantor’s family members and friends for information about their whereabouts.

Other improper tactics

• Using a false name when communicating with the debtor; 
• Making anonymous calls and messages to the debtor; 
• Making abusive and threatening remarks to the debtor; 
• Making false and misleading representations with the intent to lure the debtor to make a payment; and
• Attempting to recover the debt from family members and friends of the debtors where these persons have not entered into a formal contractual agreement with the lender to guarantee the liabilities of the debtor.