Do I Qualify?
- A collection agency or debt collector is contacting you about a debt
- The contact is happening in Canada (agency is subject to provincial law)
- You want to know what they can legally do — and what they cannot
What Is It?
Debt collection in Canada is regulated provincially, not federally. Each province has a Collection Agencies Act (or equivalent) with rules governing when collectors can call, how they can communicate, and what they can say. These rules are enforceable and violations can be reported to provincial consumer protection authorities.
The federal government has no general debt collection law, though the federal Bank Act and FCAC guidelines apply to banks’ own collection practices. Once a bank sells or refers a debt to a third-party collection agency, provincial law takes over.
How It Works
What Collection Agencies Must Do
Before a collection agency can contact you by phone, most provinces require them to send a written notice first — typically by mail. This notice must identify the creditor, the amount claimed, and the agency’s contact information. In Ontario, the first contact must be in writing (section 22, Collection and Debt Settlement Services Act, O. Reg. 74/10).
Contact Hours — What Is Permitted
Most provinces restrict collection contact to these hours:
| Day | Permitted Hours (local time) |
|---|---|
| Monday–Friday | 7:00 am – 9:00 pm |
| Saturday | 7:00 am – 9:00 pm (some provinces) |
| Sunday | 1:00 pm – 5:00 pm (most provinces) |
| Statutory holidays | Generally prohibited or restricted |
Check your province’s specific rules — Ontario’s Collection and Debt Settlement Services Act, BC’s Business Practices and Consumer Protection Act, Alberta’s Fair Trading Act, and Quebec’s Act respecting the collection of certain debts all have slightly different provisions.
What They Cannot Do
Collection agencies across Canada are prohibited from:
- Calling before 7:00 am or after 9:00 pm on weekdays
- Calling after 1:00 pm or before 1:00 pm on Sundays (most provinces restrict Sunday to 1–5 pm)
- Contacting your employer more than once (except to verify employment or contact details)
- Contacting family members, neighbours, or friends except to obtain your contact information
- Using threatening, profane, abusive, or intimidating language
- Misrepresenting the amount of the debt or their legal authority
- Threatening legal action they have no intention or ability to take
- Adding unauthorized charges or interest not provided in the original contract
How to Send a Cease Contact Letter
In most provinces, you can write to the collection agency and demand they stop all contact. Once they receive your written request, they generally can only contact you to:
- Confirm they are stopping contact
- Notify you of a specific legal action they intend to take (e.g., they are filing in court)
Sample cease contact letter:
[Your Name] [Your Address] [Date]
[Collection Agency Name] [Agency Address]
Re: Account Reference [#] — [Original Creditor]
Pursuant to [Ontario: section 23 of the Collection and Debt Settlement Services Act / BC: Business Practices and Consumer Protection Act / Alberta: Fair Trading Act / Quebec: Act respecting the collection of certain debts], I am writing to demand that you cease all further contact with me regarding the above-referenced debt, other than to advise me of any legal proceedings you intend to take.
Please confirm receipt of this letter.
[Your Name]
Send by registered mail and keep the tracking receipt. Email is also acceptable in most provinces but registered mail creates better evidence.
Statute of Limitations on Debts
A cease contact letter doesn’t make the debt disappear — but it stops the calls. The agency can still report the debt to credit bureaus and sue you. However, most provinces have a 2-year limitation period for creditors to sue on an unsecured debt:
| Province | Limitation Period |
|---|---|
| Ontario | 2 years (Limitations Act, 2002) |
| BC | 2 years (Limitation Act, SBC 2012) |
| Alberta | 2 years (Limitations Act, RSA 2000) |
| Quebec | 3 years (Civil Code of Quebec, art. 2925) |
| Manitoba | 6 years (Limitation of Actions Act) |
| Saskatchewan | 2 years (Limitations Act, 2004) |
| Nova Scotia | 3 years (Limitation of Actions Act, 2014) |
The clock typically starts from the date of last payment or written acknowledgment of the debt. Making a payment or acknowledging the debt in writing can restart the limitation period — be cautious.
What Most People Don’t Know
- A cease contact letter doesn’t erase the debt. The debt is still legally owed. The agency can still sue you (within the limitation period) and report the debt to credit bureaus. What changes is they must stop calling and writing — other than to notify you of legal action.
- Calling on a Sunday before 1:00 pm is illegal in most provinces. If an agency calls you Sunday morning, that is a violation you can report to your provincial consumer protection office.
- Acknowledge nothing in writing. If you’re unsure whether a debt is valid or within the limitation period, do not write back acknowledging the debt, and do not make a partial payment. Both can restart the limitation clock.
- You can request debt verification. Ask the agency in writing to confirm the debt amount, the original creditor, and the date of last activity. A legitimate agency will provide this. If they can’t substantiate the debt, don’t pay.
Frequently Asked Questions
Can a collection agency contact my employer?
In most provinces, a collection agency may contact your employer only once — to verify your employment status or obtain your workplace contact information. They cannot contact your employer to discuss the debt itself, and they cannot make repeated calls to your workplace.
If I send a cease contact letter, can they still sue me?
Yes. A cease contact letter stops their calls and letters, but it doesn’t prevent the creditor from taking legal action. If the debt is within the limitation period, they can sue you in small claims court or civil court. However, many agencies will not pursue litigation on smaller debts — the cost isn’t worth it. The limitation period varies by province (usually 2 years from last payment or acknowledgment).
How do I report a collection agency for violating the rules?
File a complaint with your provincial consumer protection authority:
- Ontario: Ministry of Public and Business Service Delivery — 1-800-889-9768
- BC: Consumer Protection BC — consumerprotectionbc.ca
- Alberta: Service Alberta — 1-877-427-4088
- Quebec: Office de la protection du consommateur — opc.gouv.qc.ca You can also file a complaint with the Better Business Bureau and report harassment to local police.
Q: Can they add extra fees and interest to what I owe? A: Only if the original contract specifically authorized those charges. Collection agencies cannot add their own fees on top of what the original creditor says you owe. If they are inflating the amount, that is a violation you should report.
Q: What if the debt collector says they’ll have me arrested? A: In Canada, you cannot be arrested or jailed for owing a consumer debt. This is an illegal threat. Document it (write down the date, time, and what was said) and report it immediately to your provincial consumer protection authority. It is a serious violation.
Sources
- Ontario — Collection and Debt Settlement Services Act, R.S.O. 1990, c. C.14
- BC — Business Practices and Consumer Protection Act, SBC 2004, c. 2
- Alberta — Fair Trading Act, RSA 2000, c. F-2
- Quebec — Act respecting the collection of certain debts, CQLR c. R-2.2
- Ontario — Limitations Act, 2002, S.O. 2002, c. 24, Sched. B
- Financial Consumer Agency of Canada — Dealing with Debt Collectors
- Consumer Protection BC — Debt Collection
- Office de la protection du consommateur (Quebec)