What is a Collection Agency?
A collection agency is a business that obtains or arranges for payment of money owed to either a person or a company. When you have an account with a business that is “past due” or in default, the business may turn your account over to a collection agency.
How do I Deal with Collection Agencies?
- In most provinces and territories you must be notified in writing that an account has been turned over to a collection agency. (Agencies are required to do this or to make a reasonable attempt to do so.) The agency will contact you to attempt to collect the money you owe to its client.
- Once the account has been officially turned over to a collection agency, you’ll be dealing only with that agency when making arrangements for payment. It may be best not to contact the original business—this just creates confusion—unless there’s an error in the account. When this is the case, advise both the business and the collection agency.
- When possible, pay the money you owe. You won’t have to deal with the agency once you have paid back the full amount. The agency is not allowed to collect more than the amount you owe and cannot charge for its costs to collect the debt.
- When it’s impossible for you to pay the full amount right away, explain why.
- Offer some alternative method of repayment, either a lump sum at a later date or a series of monthly payments.
- Never send cash. Always make payments in such a way that you have a receipt—either a cancelled cheque from your own bank or a receipt from the agency.
- Always be sure to have enough money in your account to cover any cheques you write to pay back your debt and never miss payments.
- When your financial circumstances change, contact the collection agency immediately and explain how things have changed. Follow up in writing.
Do not treat debts lightly. Leaving them unpaid long enough can result in court action, which could lead to money being taken from your paycheque and/or your assets being seized.
I Feel I’m Being Treated Unfairly by a Collection Agency
While rules vary across Canada, generally collection agencies are forbidden from doing the following:
- Trying to collect a debt without first notifying you in writing or making a reasonable attempt to do so.
- Recommending or starting legal or court action to collect a debt without first notifying you.
- Communicating with you or your family such that the communication amounts to harassment, or calling to collect a debt at certain prohibited times (which vary from one province or territory to another).
- Implying or giving false or misleading information to anyone.
- Communicating or attempting to communicate with you without identifying themselves, saying who is owed the money and stating the amount owed.
- Continuing to demand payment from a person who claims not to owe the money, unless the agency first takes all reasonable steps to ensure that the person does, in fact, owe the money.
- Contacting your friends, employer, relatives or neighbours for information, other than to get your telephone number or address. An exce ption would be if any of these people have guaranteed the debt or if you have asked the agency to contact them to discuss the debt or, in the case of your employer, to confirm your employment, your job title and your work address.
If you have concerns about the actions of a collection agency, contact your provincial or territorial consumer affairs office.
Provincial and Territorial Consumer Affairs Offices
Service Alberta, Consumer Contact Centre
3rd Floor Commerce Place 10155-102 Street
Edmonton, Alberta T5J 4L4 Telephone: 780-427-4088 Toll Free: 1-877-427-4088 Email: firstname.lastname@example.org
Consumer Protection BC
#307-3450 Uptown Blvd PO Box 9244
Victoria, British Columbia V8W 9J2 Telephone: 604-320-1667 Toll Free: 1-888-564-9963 Fax: 250-920-7181 Email: email@example.com
Consumer Protection Office, Manitoba Justice
302-258 Portage Avenue Winnipeg, Manitoba R3C 0B6 Telephone: 204-945-3800 Toll Free: 1-800-782-0067 Fax: 204-945-0728 Email: firstname.lastname@example.org
Financial and Consumer Services Commission
225 King Street, Suite 200 Fredericton, New Brunswick E3B 1E1 Toll Free: 1-866-933-2222 Fax: 506-444-4494 Email: email@example.com
Newfoundland and Labrador
PO Box 8700 St. John’s, Newfoundland and Labrador A1B 4J6 Telephone: 709-729-2600 Toll Free: 1-877-968-2600 Fax: 709-729-6998 Email: firstname.lastname@example.org
Consumer Affairs, Department of Municipal and Community Affairs
5201-50th Avenue, Suite 600 PO Box 1320
Yellowknife, Northwest Territories X1A 2L9 Telephone: 867-767-9161 ext 21022 Fax: 867-873-0309 Email: email@example.com
Service Nova Scotia and Municipal Relations, Public Enquiries
Mail Room, 8 South Maritime Centre
1505 Barrington Street
Halifax, Nova Scotia B3J 3K5 Telephone: 902-424-5200 Toll Free: 1-800-670-4357 Fax: 902-424-0720 Email: firstname.lastname@example.org
Consumer Affairs, Department of Community and Government Services
3090 – 9th Street P.O. Box 440
Baker Lake, Nunavut X0C 0A0 Telephone: 867-793-3303 Toll Free: 1-866-223-8139 Fax: 867-793-3321 Email: email@example.com
Consumer Protection Ontario, Ministry of Government and Consumer Services
Box 450 1201 Wilson Ave, Station A
Toronto, Ontario M3M 1J8 Telephone: 416-326-8800 Toll Free: 1-800-889-9768 Phone (TTY): 416-229-6086 Phone (TTY) 2: 1-877-666-6545 Fax: 416-326-8665 Email: firstname.lastname@example.org
Prince Edward Island
Consumer Services, Department of Justice and Public Safety
Shaw Building, 4th Floor 95 Rochford Street
PO Box 2000
Charlottetown, Prince Edward Island C1A 7N8 Telephone: 902-368-4580 Telephone: 902-368-4550 Toll Free: 1-800-658-1799 Fax: 902-368-5283 Website: https://www.princeedwardisland.ca/en/topic/consumer-services
Office de la protection du consommateur
400 Jean-Lesage Boulevard, Suite 450 Québec, Quebec G1K 8W4 Telephone: 418-643-1484 Toll Free: 1-888-672-2556 Fax: 418-528-0976 Website: www.opc.gouv.qc.ca
Consumer Services, Department of Community Services
307 Black Street Whitehorse, Yukon Y1A 2N1 Telephone: 867-667-5111 Toll Free: 1-800-661-0408 ext. 5111 Fax: 867-667-3609 Email: email@example.com