Establish what is overdue before agreeing to a solution

After a missed instalment, ask the creditor for the overdue amount, any added charges and the next action it intends to take. A failed account withdrawal can have consequences under both the loan agreement and the bank account terms. Contact the creditor early with a repayment proposal based on available income, rather than promising an amount that would leave rent or food unpaid. Keep records of calls and written arrangements.

Request a written account of charges

The FCAC explains debt-collection practices and where responsibility may depend on the institution or province. The Credit Counselling Society offers help dealing with creditors and organising a response. Verify an unfamiliar collector’s identity and the debt before sending money, especially if its payment instructions differ from previous correspondence. A revised arrangement should specify the balance, payment dates and treatment of further charges; it should not rely solely on an assurance given during a pressured telephone conversation.

Use a realistic offer when speaking with collectors