Almost all consumers, and almost all businesses have debt. They owe another party money for having been provided services, products or a loan. Consumer debt can be for electricity or gas, credit cards, the purchase of appliances or a car, or a home loan. Businesses can owe for a great many different types of services or products provided for them such as uniforms, accounting or legal services, parts for a manufacturing process, and equipment.
When a debt becomes delinquent, the business that is owed the money can attempt to collect the debt itself, or it can use collection agencies such as the North York collection agency. Usually there will be first an attempt by the business itself to recover any monies owed.
There are many ways to collect a debt. Some businesses, such as utility companies, will shut off the power to the house or business. Other businesses who have lent the money to purchase a car, a boat or a large appliance have the right to repossess the item, and then if there is a deficiency owed, attempt to collect the balance owing. Credit cards issued by banks and other lenders are unsecured, and therefore the lender has no immediate right to take things.
If there is still money owed after the in-house attempt to collect the debt, businesses usually turn to the professionals who are trained and experienced in the collection of bad debt, such as debt collectors agencies. A collection agency is licensed and bonded to provide services for which they are uniquely able to provide.
The companies like collection agencies of North York are trained and experienced to send the proper correspondence, make the proper phone calls in accordance with the laws in effect in the different provinces of Canada. There is no Canada wide set of laws regulating collection agencies. Each province has enacted its own set of laws. Such collection agencies know all of the regulations and statutes that companies collecting debts must comply with. It is dangerous not to use these professionals because of the very specific activities which are forbidden.