What is a collection agency actually allowed to do to collect a debt in Ontario?
In Ontario, collection agencies are licensed by FSRA and regulated under the Collection and Debt Settlement Services Act. The Act sets out specific rules about when, how, and to whom they may communicate. They may contact you by phone, email, mail, or in person, but they must identify themselves, the name of the agency, and the creditor on whose behalf they are calling.
Prohibited conduct includes: contacting you before 7 a.m. or after 9 p.m. on weekdays or Saturdays, or at any time on Sundays and holidays; using threatening, profane, or intimidating language; making false or misleading representations about the debt or the consequences of not paying; contacting you more than three times in a seven-day period once contact has been established; and continuing to contact you after you have sent a written request to communicate only in writing and they have acknowledged it.
They also cannot recommend legal action they have no intention of taking, or misrepresent the amount owed. If a collector crosses these lines, you can file a complaint with FSRA. Serious or repeated violations can lead to licence suspension or revocation.
Understanding your rights helps you engage on your own terms. A lawyer can advise if you believe a collector's conduct has caused you harm.
Key takeaways
- Collectors must be licensed by FSRA and follow the CADSA rules.
- Prohibited: calls outside permitted hours, threats, misrepresentation, excessive contact.
- You can request written-only communication; collectors must comply once acknowledged.
- Complaints go to FSRA; serious violations can cost the agency its licence.