Debt Options Guide
Your Rights When a Collection Agency Calls
Updated
Collection agencies in Canada must be licensed by the province where you live and must follow that province's collection law. You have the right to written details of the debt, to dispute it, and to complain to your provincial consumer protection office if an agency harasses or misleads you.
First steps when an agency contacts you
- Don't confirm personal details or pay over the phone until you've verified the call
- Ask for the agency's name, licence, the original creditor, the account number and the balance — in writing
- Check your credit report (Equifax and TransUnion are free) to confirm the account is yours
- Look the agency up with your provincial regulator to confirm it is licensed
- Keep a log of every call: date, time, name and what was said
What collectors are not allowed to do
- Threaten, use abusive language or harass you
- Give false or misleading information, such as claiming you'll be arrested
- Discuss your debt with your employer, neighbours or relatives (beyond limited location or employment confirmation)
- Collect more than you legally owe
- Contact you at unreasonable hours — each province sets its own rules
Old debts and limitation periods
In most provinces a creditor has two years from the last payment or written acknowledgement to sue (three years in Quebec). After that, the debt still exists and may still appear on your credit report, but the creditor generally can't win a lawsuit. Making a payment or signing an acknowledgement can restart the period — get advice before paying a very old debt.
If the debt is yours
You can negotiate a lump-sum settlement or a payment plan. Always get the agreement in writing — on the agency's letterhead — before paying, and keep proof of every payment. If you have several debts in collections, a consumer proposal can stop all of them at once.
Free tools
Related guides
- Credit Bureau of Canada Collections: Who Is Calling You?Credit Bureau of Canada Collections is a trade name of Collectcents Inc., a licensed collection agency — not a credit bureau. How to verify the debt and respond.
- Consumer Proposal in Canada: How It WorksHow a consumer proposal works in Canada: who qualifies, the $250,000 limit, the 5-year maximum, the creditor vote, credit impact and what it costs.
- What Is a Licensed Insolvency Trustee?What a Licensed Insolvency Trustee does in Canada, how fees are regulated, what to bring to the first meeting and how to check a trustee's licence with the OSB.
Sources
DebtDefender is an independent information site, not a Licensed Insolvency Trustee or law firm. This guide is general information, not advice for your situation. See our disclaimer.