Overview

A collection agency includes an individual who or a business that purchases debts that are in arrears and subsequently collects them.

In Ontario, collection agencies must be registered and follow the rules laid out in the Collection and Debt Settlement Services Act (CDSSA) and its regulations.

The Ministry of Public and Business Service Delivery and Procurement registers and regulates these agencies. Check our directory to see if a collection agency is registered.

Your rights

Whether you owe money or not, a collection agency cannot harass you and must follow rules under the CDSSA.

You can file a complaint with Consumer Protection Ontario if you think:

  • an agency has broken the rules
  • your rights have been violated

Collection agency responsibilities

How they should contact you

In Ontario, a registered collection agency must follow some steps to reach out to you.

  • They must send you a private letter by mail or email. The letter must include details about the debt.
  • If you do not consent to the use of email, they must send you the notice letter by mail.
  • Before sending the letter, they may contact you — only to confirm your identity, home address or email.

Their notice letter must include:

  • debt details
    • amount of the debt when it was first due and payable
    • amount currently owing (if different)
    • what you bought that led to the debt — including a clear description so it’s not confused with other things from the same company
    • the name of the current creditor — if different, the name of the original creditor
  • a statement that the collection agency will provide a breakdown of the current amount owing, if requested
  • a mandatory statement to contact the collection agency if you have questions or want more information about the current amount of debt owed or the amount owed when it was first due and payable and if applicable, a breakdown of the difference between those amounts
  • information that if you notify the collection agency or collector that a particular method of communication is costing you money, they are prohibited from continuing to contact or attempt to contact you by that method
  • the name of the collection agency and collector
  • the authority of the collection agency to demand payment of the debt
  • contact details of the collection agency: full mailing address, toll-free telephone number and if available, email address and fax number
  • a copy of this disclosure statement, which explains your rights and what to do if the agency breaks the law.

If you have questions about the letter or the alleged debt, contact the collection agency that sent you the notice or the original creditor (if listed).

The ministry does not have information about your debt.

After the agency sends the notice letter

  • They must wait 6 days before trying to contact you to collect payment
  • They can keep trying to contact you until they speak with you
  • If they call and you don’t answer — and they don’t leave a message — it doesn’t count as contact.

After the agency speaks with you, they are not allowed to contact you on behalf of the same creditor (for one product) more than 3 times in 7 days without your consent.

There are limitations to how often and when collection agencies may contact you.

Contact includes:

  • phone calls you answer
  • email
  • voicemail
  • text messages

Contact does NOT include:

  • regular mail
  • missed calls with no voicemail
  • any contact you consent to or request

Collection agencies cannot call you on:

  • a statutory holiday
  • Sunday, except between 1 p.m. and 5 p.m.
  • any other day between 9 p.m. and 7 a.m.

They can contact you by phone even if you ask for written communication only.

  • If that method of communication costs you money (like texts or long-distance calls), you can tell them to use a different way.

They must stop contacting you if:

  • your lawyer or your licensed paralegal sends a notice by verifiable means (such as email, registered mail or by courier) asking the agency to only speak with them
  • you send a notice saying you dispute the debt and want it taken to court
  • you tell them you are not the person they’re trying to contact — unless they’ve taken all reasonable steps to confirm your identity

Who an agency is allowed to contact

The agency is only allowed to contact other people in specific cases:

  • Spouse, family member, relative, neighbour or friend, if:
    • that person has guaranteed to pay your debt
    • you have requested that the collection agency discuss the debt with that person
    • they’re only looking to confirm your contact information
  • Your employer:
    • once, to confirm your employment, business title or business address
    • if they guaranteed your debt and the contact is about that guarantee
    • if you have given the agency written permission
    • if it’s a court order or an automatic deduction from your salary

The collection agency can:

  • do a credit check
  • register the debt to your consumer credit report — which may negatively impact your credit score.

What else a collection agency cannot do

Under the Collection and Debt Settlement Services Act, an agency is not allowed to:

  • use undue, excessive or unreasonable pressure or harass you
  • use threatening, profane, intimidating or coercive language
  • give anyone misleading information
  • threaten legal proceedings to collect a debt unless the creditor has given written authorization to start the proceeding and the proceeding is not otherwise prohibited by law
  • advise a creditor to take legal action against you without letting you know of their intent to make this recommendation
  • publish or threaten to publish your failure to pay

If you think an agency has violated the act, you can file a complaint.

If you owe money

You can:

  • pay off the debt
  • contact the collection agency to negotiate a payment plan
  • explore other options available to you

If the amount owed is wrong

If you are the right person but you think the amount is wrong or you’ve already paid, you can:

  • contact the collection agency and, if applicable, the original creditor to correct the error or get more information
  • check your consumer credit report to see if the amount is correct. Find more information about credit reports

How to dispute a debt

You can also dispute the debt. A collection agency cannot continue to contact you without your consent if you send them a notice by verifiable means (such as e-mail, registered mail, or a courier) to say that you dispute the debt and suggest that the matter be taken to court. Be aware that the collection agency could advise the creditor to take legal action.

Make sure you keep a record of all your communications, and always identify the debt by account name or number when corresponding with agencies.

If the agency keeps calling, file a complaint.

If you are not the right contact person

If a collection agency or collector tries to collect debt from you by mistake, inform them that you are not the debtor.

  • Collection agencies are required to take reasonable precautions to ensure that they are contacting the right person.

If you have informed the collection agency that you are not the debtor and they keep continues to call, file a complaint.

Debt settlement

Credit counselling

If you need help managing your debt, you can find a credit counsellor through these non-profit associations:

Debt settlement services

Debt settlement service providers are different from credit counsellors.

Note: Consumer Protection Ontario is not affiliated with, nor does it endorse any debt settlement service.

What you should get

If you use a debt settlement service, they must:

  • give you a copy of your debt settlement service agreement
  • provide a written report on the performance of the agreement, if you ask for one
    • They must send it within 15 days of your request.
    • Always take the time to understand your service agreement contract.

What debt settlement agencies cannot do

Agencies must follow strict rules concerning debt settlement.

They are not allowed to:

  • charge you fees if they are not registered in Ontario
  • ask for more than $50 upfront before you sign a services agreement or make your first debt payment
  • charge more than 10% of your debt for a one-time settlement payment
  • charge more than 15% of your debt for each debt payment in a series
  • say they can get collection agencies to stop calling you
  • claim their program is approved by the Government of Ontario
  • try to stop you from communicating with your creditors
  • give anyone false or misleading information

If you think a debt settlement agency has broken the rules, you can file a complaint with the ministry.

When to file a complaint

You can file a complaint if:

If you are not sure whether your rights have been violated:

  • review the rules an agency must follow

contact us by telephone, email or mail.

How to file a complaint

Filing a complaint with the ministry does not cancel your debt. You are responsible for any money you owe regardless of the conduct of the collection agency or how long ago you incurred the debt.

Learn more about the steps you need to take to file a complaint with Consumer Protection Ontario.

If you require an alternate format or accessibility accommodation to file a complaint, contact us.