Canadians are getting deeper and deeper into debt. Since the mid-1980s, the average household debt load has climbed to 146 per cent of disposable income from 50 per cent, according to a recent TD Economics report.

With rising debt comes debt collectors. They buy debt from credit card companies, utilities and other firms, and then try to get consumers to pay it back along with fees and penalties — sometimes using questionable tactics.

Shauna Major's nightmare began with a $140 phone bill.

The Sault Ste. Marie, Ont., woman paid the bill and has the proof. However, her file wound up with a collection agency, which gave it to a law firm.

Major began getting phone calls twice a day seeking payment. "The harassment was unbelievable," she recalled.

When Major applied for a bank loan, she found her credit rating had been damaged by a collection agency report.

"I can not believe that this is happening," she said. "It is so ridiculous."

Mark Silverthorn, a lawyer in Toronto who formerly worked for debt collectors, now represents people fighting the often heavy-handed methods used by collection agencies.

"Maybe 25 per cent of debt collectors at collection agencies are engaging in illegal, unprofessional and unethical behaviour," he said.

There are dozens of collection agencies in Canada, and they're all bound by provincial laws covering behaviour and ethics. However, they often hire lawyers, who in some provinces are not subject to the same laws.

One of the tools used by such lawyers is a document called a draft statement of claim. While it can appear to be an official document, it is not.

Andrew Barkhouse of Antigonish, N.S., received a draft statement of claim from the Natale Law Offices of Markham Ont., and when he saw the words "Superior Court" on it he thought he was being sued.

"Originally, it looked kind of scary," Barkhouse said.

Silverthorn agreed the document looks real, adding that it is not right to make people think their debt problem has become a legal problem.

"Collection agencies are doing something indirectly that they can't do directly," Silverthorn said. "Collection agencies are hiring lawyers to send out … thousands [of] draft statements of claim," The use of draft statements of claim has led to allegations of professional misconduct against an Ontario lawyer.

The Law Society of Upper Canada has scheduled a disciplinary hearing for Nov. 16-17 against Deanna Natale of Natale Law Offices.

Marketplace continues to investigate debt collectors. They want to hear your stories at www.cbc.ca/marketplace.