A collection agency keeps calling me in Ontario — what are they allowed to do?
Collection agencies in Ontario are regulated: there are strict rules on contact hours, frequency, contacting your employer or family, and misrepresenting legal consequences.
The Collection and Debt Settlement Services Act and its regulations govern how a collection agency may behave in Ontario. An agency must send written notice before telephoning, may not call on statutory holidays or outside permitted hours, may not contact your employer except to confirm employment, and may not discuss the debt with family or neighbours.
Threatening legal action that is not actually intended, or overstating the consequences of non-payment, is a breach. Complaints go to the Ministry of Public and Business Service Delivery, and repeated breaches can cost the agency its registration.
Separately, check the limitation period. Most consumer debts in Ontario become unenforceable in court two years after the last payment or written acknowledgement — but making a payment can restart the clock, so get advice before paying anything on an old account.
Source: Collection and Debt Settlement Services Act, R.S.O. 1990, c. C.14
This work is handled by Leena Kumar (Bankruptcy & insolvency). Read more about bankruptcy & insolvency at VK Law Group, or send us the facts and we will tell you where you stand.
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