Collection Agency Rules in Canada

• Collection agencies in Canada are permitted to contact debtors concerning debts that have been placed with the agency. Before any collection methods, such as collection calls, may be exercised, the debtor must be notified in writing that the collecting agency has been assigned to his account. The methods that collection agencies use to collect the debt are regulated by the Canadian government, as is what information the agency is able to obtain when collecting.
  
  

Identification

• Collection agencies must always be honest when collecting a debt from consumers. When a collection agency representative calls the debtor, he must identify himself and the collection agency he is calling on behalf of. Giving a false name or false agency contact is forbidden. In addition to identifying himself, the representative must tell the debtor how much money is owed on the account, and who the money is owed to. Under no circumstances is a collection agency permitted to impersonate a law office, law enforcement agency or any other government official. Telling a debtor that he will be arrested for not paying the debt is considered a threat, and threats are not permitted by collection agencies. Making physical threats to a debtor, her family members or friends is also illegal.
  
  

Calling Times

• The times a collection agency is permitted to call a debtor varies from one territory or province to another. The hours and frequency a collection agency is permitted to call a debtor are regulated so it does not become harassment to a debtor and his family. According to Credit Counseling Services, collection agencies are only permitted to call a debtor three times in a seven-day period, including voice messages. Calls may be placed to a debtor between the hours of 7 a.m. and 9 p.m. Monday through Saturday and between the hours of 1 p.m. and 5 p.m. on Sunday. It's illegal for a collection agency to call a debtor collect, or send a written communication or telegram that the debtor has to pay for.
  
  

Privacy Rules

• The privacy of debtors in Canada is protected. Although a collection agency has the right to call the references, family members, friends and neighbors to locate a debtor, the agency is forbidden from disclosing any information regarding the debt. The representative from the collection agency is only permitted to ask for the debtor's current address or telephone number. If the reference or contact person is on the account or a co-signer, the collecting agency has the right to speak to her concerning the debt. An employer should only be called to verify the debtor's employment, job title and work address. It is illegal for a collection agency to give out false information to references or contacts that could damage the debtor and his family in any way.