I have a friend who is on social assistance because she has a severe heart condition and is waiting for surgery. She's in her 20s and had no savings prior to becoming ill, and she doesn't have a family who can help her out financially. Actually she was one of my foster sisters, when I was in foster care.

She is approximately $1400 in debt. The debt is being handled by a local creditor, and my friend has been paying $20 per month for over a year. Not a large amount, but after paying her rent, utilities, and medical care, the government only gives her $225 a month to live on, so it's actually a fairly large portion of that.

The problem is, the creditor calls her every month to ask why she can't pay more, and also to ask when she is going back to work. The creditor has been given her cheque stubs from the government, as well as a form from the doctor which states my friend is disabled. So she knows how little money my friend makes. This same creditor has also sent threatening letters, and said that the sheriff would come to take my friends' belongings away. She has very little anyway... she lives in a furnished apartment, and her only possessions of any value are an older computer and a TV, and she relies on those 2 things as her connection to the outside world. She would be devastated to lose them.

Anyway my friend gets very upset and scared by the phone calls and letters. If she's even a day late in sending her $20 payment, she freaks out and thinks the sheriff is coming. Needless to say, this is NOT good for her heart.

Does anyone know about laws in Canada regarding debt collection? Is there anything to protect her since she is disabled and basically living in poverty? She IS paying nearly 10% of the money she is given in a month towards this debt. She's also in no position to work or to pay more. I am worried that the stress might make her worse or even kill her.

Hey Orange,

Creditor Harassment laws are similar b/w Canada and the USA.

Anyway,
Tell your friend to relax. The Sheriff (wow, small town) can't just come and take away her things. So that will never happen. There was to be a court order first and then they don't take away the most basic things (computer, tv).

If they are harassing her too much, she could always lodge a complaint.

I am assuming she lives in Saskatchewan as you do.

http://www.saskjustice.gov.sk.ca/cpb/credit.shtml

If you feel a collection agent is harassing you, contact the Consumer Protection Branch at (306) 787-5550 or 1-888-374-4636 (toll free in Saskatchewan).

Thanks so much CaptainForest! I thought there was some sort of law protecting her, but I had no idea where to look. And that's VERY good to know about the TV and computer. I wasn't sure if they could take things like that away or not... I knew they didn't with a bankruptcy, so... she will be very relieved in any case! Thanks very much for the link too, I will check it out and try to help her if she wants to lodge a complaint.

Your welcome.

Great help Capt

And to renew this, Collection people will lie. They break the law over the phone all the time. Laught at them and give them the sheriffs number, they will find something else to threaten about.

Thanks for your input, Fr Chuck... I thought they could be dishonest at times too! Good to have that confirmed.