Can Collection Agencies Contact Family About a Dead Person's Debt in Ontario?

Losing a relative is hard enough without a stranger phoning to ask who will pay what they owed. Many families are caught off guard when collectors call within weeks of a death, sometimes at odd hours and sometimes with an aggressive tone.

This article explains what Ontario's rules for collection agencies say about contacting family, the limits on how often and when they may call, what you can say, and how to push back. The rules here are for collection agencies, and whether they apply to a particular creditor collecting its own debt is a question a lawyer can confirm.

Who a collection agency may contact

Under the Collection and Debt Settlement Services Act, the Ministry's guidance says an agency may contact a spouse, family member, relative, neighbour, friend or acquaintance of the debtor only if the person guaranteed the debt, the debtor asked the agency to contact them, or the agency needs the debtor's home address or phone number because it lacks contact information. The guidance is written for debtors generally, so how it applies to a deceased person's debt is worth confirming with a lawyer.

On top of that, an agency cannot contact someone if it knows or reasonably should know that the person is not responsible for the debt. If you are a grieving child, sibling or spouse who never signed for the debt, you can tell the caller that, and the caller should take note.

Being a relative does not make you the debtor. Debts are generally dealt with through the estate by the executor, who settles unpaid debts before distributing assets to beneficiaries. Whether you are personally liable depends on whether you were a party to the debt, which is worth confirming with a lawyer if you are unsure.

Limits on how and when they can call

Even when contact is allowed, there are rules about conduct. Collection agencies cannot communicate in a harassing manner or with a frequency that constitutes harassment, use threatening, profane, intimidating or coercive language, use excessive or unreasonable pressure, or communicate in a way that incurs charges to the debtor. Ontario's guidance also says agencies cannot give misleading information, cannot threaten legal proceedings without written creditor authorization, and cannot publish or threaten to publish a failure to pay.

What to say, and what not to say

You do not need to have a long conversation. A short, polite script is usually enough, and it avoids creating confusion about who is responsible.

• Say that the person has died and that you are not the debtor and did not guarantee the debt, if that is true.
• Give the name of the estate trustee if you know it, or say you will pass the call on to them.
• Ask for the agency's name, the creditor and the account name or number, and ask for details in writing.
• Do not say you will pay, do not give banking details, and do not agree that the estate owes the amount until it has been checked.
• Write down the date, time, name and what was said for every contact.

Be careful about one point. Saying you will "take care of it" can be understood as a promise. Stick to facts and refer them to the estate trustee.

Stopping contact and making a complaint

An agency must stop contacting the debtor after being told that the debt is disputed and a court determination is requested. If the debtor's lawyer or paralegal asks that communication go only through them, the agency must comply. Whether a lawyer can take over the communication for the estate or for you depends on your situation, so it is worth confirming with a lawyer.

If you believe an agency broke the rules, you can file a complaint through Consumer Protection Ontario. Keep a record of communications and identify the debt by account name or number. Filing a complaint does not cancel the debt. So a complaint addresses the agency's behaviour, while the question of whether the estate owes the money is separate.

What to do next

• Keep a log of every call, letter and voicemail, with dates and times.
• Check whether the caller is contacting you outside the allowed hours or too often.
• Find out who the estate trustee is, or whether one has been appointed, and pass the agency's details to them.
• Check whether you ever signed, co-signed or guaranteed the debt.
• Do not pay or promise payment from your own funds until you have confirmed that you are responsible.
• Speak to a lawyer if the calls continue, if you are the estate trustee, or if the debt amounts are large.

Frequently asked questions