Before getting into the rules a collector must follow when dealing with a debtor, there are some tips a debtor can follow when a debt collector reaches out to them. It is in your best interest to ask the collector for the following information:
The name of the person calling about your debt
The company you owe the debt to (the original creditor)
The name of the company the collector is calling on behalf of, it could be a collections department within the original creditors company, or a separate company that the creditor has sold the debt to.
Make sure to note down a phone number that will be easy to reach the collector back at
Ask for important details such as the amount they are pursuing you for & the date that you started owing this debt to the collector
Make sure to verify the information the collector is giving you, never confirm you debt over the phone without checking records and bank statements to aid you in confirming that the debt is indeed yours, and that the amount owed is correct
Always ask for a receipt after a payment
Ask for the debtor to send you a statement in writing, detailing all the information they are providing to you, they are obligated to provide this to you. In fact, always ask for written confirmation any time you are entering into an agreement with the collector, whether it be confirming the debt is yours, settling on a payment plan, or making changes to your account wth them.
This guide is important to follow so that you don’t accidentally confirm a debt that isn’t yours or confirm an amount that you are not actually obligated to pay. It is always the best idea to receive communication in writing so that you have records of your interactions with collectors. This way it is easier to dispute them if they are being misleading or untruthful.
Debt collection is different across all provinces, so the rights that a debtor will have vary based on province. With that being said, there are a lot of rules and regulations that are the same from province to province.
These are some practices that are true for each province and territory:
Debt collectors can only contact neighbours, friends and family to confirm your address or ask for your phone number. The only time they can contact outside of this limits is if one of these persons is a co-signer or guarantor for your debt, or if you have given them written permission
Collectors are not allowed to call you in a manner that would constitute harassment, this varies depending on the definition of harassment in each province
Collectors cannot contact you on statutory holidays
Collectors cannot imply that they are part of a legal department, have any legal power or threaten legal action without permission of the original creditor. They also cannot pursue a debtor with legal action unless notifying the debtor first
They also cannot provide any false or misleading information to try and collect on a debt
They must not use intimidation tactics such as placing unreasonable and unnecessary pressure on a debtor to payback a debt, foul language and threats
Collectors cannot try and collect a debt from someone who is not responsible for the debt (I.e. anyone other than the debtor or their co-signer)
Collectors are not allowed to discuss your debt with anyone else unless given written permission by the debtor, or if they are a co-signer on the debtors loan
If a debtor writes a written request including their phone number and address to only receive communication via written mail, then the collector must comply. This is the same when a debtor requests a collector only speak to their lawyer
Collectors cannot add their own fees except for NSF (non-sufficient fund) charges and any legal charges if legal action is taken
Collectors cannot contact debtors in a way that would cost the debtor money
Only if the debtor gives written permission can they contact and speak with someone regarding the debt that is not the debtor or co-signer
They can only contact you during certain times of the week, this slightly varies for each province.
Some practices that differ based on province are collection calls at work. In Ontario, British Columbia, Quebec, Nova Scotia, Nunavut, Yukon, Saskatchewan and the NorthWest Territories, debt collectors can only attempt communication at your place of work once, and only to retrieve a debtor address or phone number. In Newfoundland & Labrador and Prince Edward Island, they are not allowed to contact or come to a debtor’s place of employment at all. In Ontario, Alberta and Nova Scotia, collectors are not allowed to contact you more than three times within a 7-day period. and In Alberta and Manitoba, they are allowed to contact a debtor at work, the debtor can request they not contact them, but they must make other plans to deal with their debt. In Manitoba they can also contact our employer to confirm the name of the business, its address and a debtor’s employment status. In Manitoba, a debt collector may also repossess items purchased on credit, provided they inform the debtor with written notice within 48 hours or coming to collect. This write notice must include what’s being repossessed and the amount that needs to be paid in order to reclaim the items they have repossessed. This can also only be done by a creditor or licensed debt collection agent.
Another thing that varies between each province are the times of day that a collector can call you:
Alberta: 7am – 10pm Monday to Saturday & 1pm – 5pm Sunday
BC: 7am – 9pm Monday to Saturday & 1pm – 5pm Sunday
Manitoba: 9am – 7pm Monday to Saturday & no contact permitted on Sunday
New Brunswick: 7am – 9pm Monday to Saturday & 1pm – 5pm Sunday
Quebec: 8am – 8pm Monday to Saturday & no contact permitted on Sundays
Nova Scotia: 8am – 9pm Monday to Saturday & no contact permitted on Sundays
PEI: 8am – 9pm Monday to Saturday & no contact permitted on Sunday
Newfoundland & Labrador: 8am – 10pm Monday to Sunday
Saskatchewan: 8am – 9pm Monday to Sunday
North West Territories: 7am – 9pm Monday to Saturday & 1pm – 5pm Sunday
Yukon: 7am – 9pm Monday to Saturday & no contact permitted Sunday
Nunavut: Unspecified
The last thing that is different for each province is the statute of limitations, this is the amount of times a debt collector has to pursue a debt (not including government debts or student loans). In Alberta, BC, Sasaktchewan, Manitoba, Ontario and New Brunswick the statute of limitations is 2 years. In Newfoundland & Labrador, Nova Scotia, PEI, Yukon, North West Territories and Nunavut, the statute of limitations is 6 years. Quebec’s statute of limitations is 3 years for debt collection.
It is important to know what a collector can and can’t do to protect yourself from aggressive collections tactics. It differs based on each province, but in general they all uphold the standards that debtors cannot be harassed or coerced into paying a debt. Know your rights and believe in them.
There are still many ways a creditor or debt collector can reach you and harass you to pay back your debt within the regulations set for them. If you ever need to report the practices of a certain creditor or debt collector, you can contact the Financial Consumer Agency of Canada at 1-866-461-FCAC (3222) for service in English, 1-866-461-ACFC (2232) for service in French and 613-960-4666 if you are calling from outside of Canada. If you ever need help with your debts or debt collectors, give us a call at 800-335-8176 to go over your options!