Can debt collectors discuss your debt with your family members?

What can debt collectors say

With interest rates, inflation and credit card debt all moving higher, we’re seeing debt collectors pick up the pace again post-pandemic. Getting a call from a debt collector can be incredibly stressful. It’s even more pressure on top of the debt itself. If they come across as pushy, it may be because they receive a commission on the amount of debt they recover. However, they still have to follow strict guidelines under Canadian laws. For example, they can’t call you on statutory holidays or threaten you with physical harm (not like on The Sopranos). But can they call others in your life? Yes, but with limits. 

Wondering about who debt collectors might contact? We’ll walk you through what debt collectors can and can’t do when it comes to contacting people in your life. 

Can debt collectors contact your employer?

Yes, a debt collector can reach out to your boss—but only to confirm basic personal details. They can call your workplace or employer to confirm your employment status and the business address. Another reason they might call your employer is to determine your home address or phone number. They cannot discuss the amount of your debt with anyone. That would violate your rights, and it’s not permitted under either federal or provincial laws.

Can debt collectors contact your family members?

The short answer: Yes. Debt collectors are permitted to contact your family, friends and neighbours under the following two circumstances:

1. They’re looking for your address or phone number.
2. The person they’re calling guaranteed or co-signed your loan.

However, collectors are very limited in what they can say to people other than you.

Can debt collectors discuss your debt with family members?

Just to reiterate, no, debt collectors cannot discuss your debt with anyone other than you, including family members. Collections agencies can only contact family members under the specific circumstances noted above.

If a debt collector tells your family members, even your spouse, about your debt information, you should report the collector to your province’s or territory’s consumer affairs office. The Canadian government says you have certain rights when dealing with the debt department of a financial institution, like a credit union or a bank, and provincial legislation says similar rules apply for private lenders.

For example, Ontario’s Collection and Debt Services Act 1990 has clear rules about confidentiality. The law states that anyone collecting debt must maintain confidentiality and not communicate debt information to anyone other than law enforcement, a relevant government agency, the debtor’s counsel, or anyone the debtor permits them to contact. (More on your rights.) 

Bottom line: Debt collectors can’t call your family members and discuss your debts with them. 

How can I avoid debt collectors contacting my family members or my work?

To lower the chance of a debt collector calling, here are some options: 

• Ensure the collector has your updated phone number and address. 
• Answer calls from them, so they’re less likely to go to family members on the premise of confirming your phone number.
• Inform the debt collector that you prefer to be contacted in writing. This request must be sent by registered mail (a service from Canada Post that requires proof of delivery) and include your phone number and address.
• Inform the debt collector you would prefer to be contacted via your legal advisor. Again, you must send this request by registered mail and provide your legal advisor’s address and telephone number.

Want to stop the collections calls? Get debt relief today

Have you been dealing with debt collection calls? You can put a stop to the calls by getting a handle onyour debt. Contact a non-profit credit counselling service, like Credit Canada, for debt relief. It is at absolutely no cost to you. Their certified credit counsellors can walk you through your options, and they can even negotiate the interest on the debt on your behalf. 

In the meantime, it’s never too late to revamp your budget plan and get back on track with payments.

This article was written by a certified Credit Counsellor and Financial Coach with Credit Canada, Canada’s first and longest-standing credit counselling agency. For more than 50 years, Credit Canada has been helping Canadians lead healthy financial lives, achieve their goals, and improve their quality of life through financial education and debt resolution. As a national, non-profit organization, Credit Canada has helped thousands become debt-free and achieve financial wellness. 

If you are struggling with debt, you can contact Credit Canada for free credit counselling services.

Read more from Credit Canada:

• How to calculate your debt-to-income ratio—and why you should know this number
• Does it make sense to use a line of credit to pay off credit card debt?
• How long do debt collectors try to collect in Canada?