Collection Agency Rules in Canada 2025

Updated March 2025 · 9 min read · bremo.io

Collection agencies in Canada operate under strict provincial rules. Understanding these rules helps you know when an agency is acting legally — and when to push back or file a complaint. This guide covers the key rules that govern collection agencies across Canada in 2025.

Licensing Requirements

Collection agencies must be licensed in most Canadian provinces before they can collect debts in that province. Operating without a licence is illegal. You can verify whether an agency is licensed by checking with the provincial consumer protection authority in your province.

First Contact Requirements

When a collection agency first contacts you, they must typically provide:

• The name of the collection agency
• The name of the original creditor
• The amount claimed to be owed
• The name of the collector you're speaking with

In most provinces, collection agencies must also send you a written notice of the debt within a few days of first contact, providing you with information about the debt and your right to dispute it.

What Collection Agencies Cannot Do

Prohibited Contact Tactics

• Call before 7 AM or after 9 PM on weekdays in most provinces
• Call on Sundays or statutory holidays (restricted hours in most provinces)
• Call you at your workplace if you've asked them not to
• Contact your employer about your debt (except to verify employment or pursuant to a garnishment)
• Contact family, friends, or neighbours about your debt except to locate you
• Call more frequently than the rules allow (typically once in a 3-day period under some provincial rules)

Prohibited Conduct

• Using threatening, profane, or intimidating language
• Using undue, excessive, or unreasonable pressure
• Giving false or misleading information about the debt
• Misrepresenting themselves (e.g., claiming to be a lawyer or government official when they are not)
• Threatening legal action they don't intend to take
• Adding unauthorized charges or fees to the debt
• Contacting you after you have retained legal counsel (must direct all communication to your lawyer)

Disputing a Debt

If you believe a debt is not yours, has already been paid, is outside the statute of limitations, or is the wrong amount, you have the right to dispute it. Send a written dispute by registered mail. Once you dispute the debt, the collection agency should provide verification of the debt before continuing collection activities.

Important: disputing a debt does not eliminate it. If the debt is valid, collection activity will resume after verification. But disputing forces them to prove the debt is legitimate — which sometimes reveals errors.

Statute of Limitations: Old Debts

In most Canadian provinces, the limitation period on unsecured consumer debts is 2 years (Alberta, BC, Ontario, Manitoba, Saskatchewan, New Brunswick, Nova Scotia, PEI) and 6 years in Newfoundland and Quebec (though Quebec has moved to a 3-year civil prescription period). After this period, the debt is "statute-barred" — the creditor cannot successfully sue you in court to collect it.

However: making a payment, acknowledging the debt in writing, or even verbally acknowledging it on a recorded call can "restart the clock" in some provinces. Be careful about what you say on collection calls regarding old debts.

How to Stop Collection Calls

In most provinces, you can send a written cease communication request by registered mail. Once received, the agency may only contact you to:

• Acknowledge receipt of your request
• Advise that collection activities are being terminated
• Advise of legal action the creditor intends to take

Filing a consumer proposal or bankruptcy under the BIA also stops all collection activity through a legal stay of proceedings.

How to File a Complaint

If a collection agency violates the rules, you can file a complaint with:

• Ontario: Consumer Protection Ontario
• BC: Consumer Protection BC
• Alberta: Service Alberta, Consumer Investigations Unit
• Quebec: Office de la protection du consommateur
• Other provinces: Your provincial consumer affairs or public safety ministry

Keep records of all violations: dates, times, what was said, and names of callers. Agencies can face fines and licence suspension for repeated violations.