What is a collection agency?
A collection agency is a business hired by a creditor to recover money that’s owed. If you’ve missed payments on a loan, credit card, or bill, your creditor may send your account to a collection agency.
Once that happens, the agency becomes your main point of contact for repayment. But they must follow strict rules when communicating with you.
Collection agencies and their staff must be licensed. They are not allowed to:
Call before 7 a.m. or after 9 p.m. Monday to Saturday
Call before 1 p.m. or after 5 p.m. on Sundays
Contact you on holidays
Call you at work or speak to your employer
Use threats, intimidation, or abusive language
Discuss your debt with anyone else unless you give written permission
Charge you more than what you owe
Call so often that it feels like harassment
Hide their identity or the name of the company they’re collecting for
You can ask a collection agency to contact you only in writing or through a lawyer. Send your request by registered mail or fax and keep a copy for your records.
If you believe a collection agency is breaking the rules, you can Submit a Complaint to the Financial and Consumer Services Commission.
If you’re ready to make payment arrangements, speak with the collection agency—not the original creditor.
If there’s an error in your account, notify both the agency and the creditor. Provide documentation to support your claim.
If you can’t pay the full amount right away, suggest a delayed lump sum or monthly payments.
Always ask for proof of payment—whether it’s a receipt from the agency or a cancelled cheque from your bank.
Make sure you have enough money in your account before writing a cheque or setting up a pre-authorized payment.