Trust funds are all funds received by a collection agency in the normal course of business from clients or debtors.

Trust funds are not:

  • payments for fees earned
  • advance payments for future services or expenses
  • funds owed to the agency

See subsections 17(1) and 17(1.1.) of the General Regulation for more information about trust accounts and trust funds.

Registration and maintenance of trust account

Unless the Registrar grants written permission:

  • a collection agency can only have one trust account
  • the trust account must be at:
    • a bank branch in Ontario
    • an Ontario loan or trust corporation
    • an Ontario credit union

The trust account must be designated as a “Collection and Debt Settlement Services Act - Trust Account” (“CDSSA, in Trust ” is also accepted).

If requested by the Registrar, you must provide an accounting of your agency’s trust account within 30 calendar days.

See sections 17 and 18 of the General Regulation for more information about maintaining a trust account in Ontario.

Trust account deposits and disbursals

Within 2 banking days you must deposit all trust monies that the collection agency receives from debtors located in Ontario. This applies to all monies, including:

  • cash
  • cheque
  • credit card payments
  • electronic transfer

Money collected and held in trust must be paid out to the persons entitled to the monies on or before the 20th day of the month following the month of collection. If you collect the money, and less than $15 is due, an agency must pay the person entitled to the money within 90 calendar days.

See subsections 17(4) and 18(1) of the General Regulation for more information about trust account deposits and disbursements.

Unclaimed trust funds

If you are unable to send the money held in trust to the person entitled to it within 6 months, you must forward all unclaimed and/or unpaid funds to the Government of Ontario.

Send to the Licensing Unit a list of the applicable creditors or debtors and the amounts owed to them. Your cheque must be payable to the Minister of Finance.

If a creditor or debtor claims that it is entitled to unclaimed trust funds, ask them to contact us.

See subsection 18(2) of the General Regulation for more information about unclaimed trust funds.