Home About Commercial Consumer Subrogation Outsourcing Contact
Canada Consumer Debt Collection Canada Consumer Debt Collection
Saturday, September 30, 2023
Consumer Debt Collection
Selecting a Collection
Agency in Canada
15 Reasons to Use Priority Credit
Collection Comparisons in Canada vs USA
Canada Consumer Debt Collection
Similar to the United States Consumer debt collection in Canada is heavily regulated at a provincial level, like the state level in the US. However, in Canada there is a federal Privacy Act with teeth, that effects consumer debt recovery regulations, Credit Reporting regulations and the different court systems.

A prime example of this effect is encountered when doing credit investigations in Canada. In Canada you CANNOT pull a person's credit bureau unless you have authorization in writing to do so. Violation of this regulation can bring severe repercussions. The use and access of Credit information in Canada is far stricter than the US and heavily enforced. Most credit applications in Canada contain a waiver allowing the creditor to access the debtor's credit files.

Another mine field is the different provincial Statutes of Limitation in Canada. For example: In the provinces of Ontario and Alberta there is a 2 year limitation on suing to recover debt. This means that if the last payment on a debt or receivable is over 2 years old, and the debtor resides in these provinces, you can report the debt against their credit file but you CANNOT sue them.

Make sure you have someone collect your money that is licensed to collect in that province. Each province requires companies that collect debt to have a license. No exceptions. Collection agents are required to carry a bond and insurance, and adhere to all applicable provincial laws. Also, in Canada provincial regulations are heavily enforced by Government regulatory bodies.

Unfortunately, when US collection agencies collect in Canada without being licensed, they expose their clients to potential liability. That potential liability could be to a large Government Agency with floors of lawyers.

Obviously the complexities of collecting receivables or debt in each provincial jurisdiction could easily fill several novels. If you have any questions or considerations, don't be afraid to ask. Simply click on the $ and choose your contact option 
Did you know?
  • The credit reporting limitation for reporting a debt (from date of last payment) in the Province of Manitoba (MB) is only 5 years

  • In Ontario under the Ontario Collection Agencies Act only Canadian residents may be licensed as a collector.

  • In British Columbia when a debtor has notified a collector and the creditor that the debt is in dispute and the debtor wants the creditor to proceed with legal action, any further calls are illegal. When this situation occurs there are only 2 options-sue or close.

Did you know?
See Hours of Operation
New York
Call Toll Free 1-866-266-0117 ext 398
Hours of Operation
Monday - Friday
09:30 - 19:00 EST
08:30 - 18:00 CST

07:30 - 17:00 MTN
06:30 - 16:00 PST
Home      |      About      |      Commercial      |      Consumer      |      Subrogation      |      Outsourcing      |      Contact

Powered By LeadHQ **
Copyright © 2011, CollectDebtInCanada

1-866-266-0117 ext 350

ACA, Credit Institute of Canada, D&B, TransUnion, Equifax, IACC Certfied Agency