What are the Ontario Debt Collection Laws?

What laws regulate debt collectors in Ontario?

The Collection and Debt Settlement Services Act (CDSSA) sets the rules for third-party collection agencies in Ontario. Your original creditor’s own collection department does not have to follow these rules.

The Ministry of Public and Business Service Delivery and Procurement licenses and oversees collection agencies. If an agency breaks the law, the Ministry can fine it, suspend its licence, or revoke it.

Source: Government of Ontario – Stop collection agency calls

What must a collector do before contacting you?

A collection agency must send you a written notice by mail or email before calling to demand payment. The notice must include the creditor’s name, the amount you owe, and the agency’s contact details.

After sending the notice, the agency must wait six days before contacting you to collect. If the agency demands payment without first sending proper notice, it is in violation of the CDSSA.

Source: Government of Ontario – Stop collection agency calls

When can a debt collector contact you?

Under Ontario’s CDSSA, collection agencies cannot call you on a statutory holiday, on Sundays outside 1pm to 5pm, or on any other day between 9pm and 7am. What that actually means is Monday to Saturday, 7am to 9pm, and on Sundays, 1pm to 5pm only.

After speaking with you, a collector may not contact you more than 3 times in 7 days without your consent. If a contact method costs you money, tell the agency in writing.

Source: Government of Ontario – Stop collection agency calls

What can and cannot debt collectors do?

Collectors can	Collectors cannot
Ask you to repay the full amount owed to the original creditor	Add fees or interest not in the original agreement
Contact your family or friends to get your phone number or address	Discuss your debt with anyone other than you
Do a credit check and report the debt to credit bureaus	Use threats, intimidation, or abusive language
Contact your employer once to confirm your employment	Keep calling your workplace after you tell them your employer does not allow it
Recommend the creditor take legal action	Threaten legal action without written authorization from the creditor

Source: Collection and Debt Settlement Services Act

What is the two-year limitation period?

The Limitations Act gives creditors two years to sue you for an unpaid debt in Ontario. The clock starts from the date of your last payment or the date the debt was discovered.

A payment or a written acknowledgment resets the clock. Under section 13 of the Limitations Act, the acknowledgment must be in writing and signed, but courts have ruled that emails and text messages count as written.

If a collector contacts you about an old debt, do not confirm you owe it until you know the dates.

The limitation period does not erase the debt. Collectors can still call you within legal hours, and the debt stays on your credit report for up to six years from the date of last activity.

Source: Limitations Act, 2002

What happens if a collector breaks the rules?

File a complaint with the Ministry of Public and Business Service Delivery and Procurement through Consumer Protection Ontario. Include the agency’s name, the dates and times of contact, what the collector said, and any evidence you have.

A complaint does not cancel your debt. You still owe the original amount. But the Ministry can fine the agency, suspend its licence, or shut it down if violations are serious.

Source: Government of Ontario – Stop collection agency calls

Frequently asked questions

Can a debt collector call me at work?

Yes, unless you tell the agency in writing that your employer does not allow personal calls. If the collector keeps calling your workplace after that, file a complaint with Consumer Protection Ontario.

Can a debt collector contact my family about my debt?

A collector can contact your family only to get your phone number or address. The collector cannot discuss how much you owe or pressure your family to pay. If an agency shares details of your debt with anyone other than you, that is a CDSSA violation.

What if I do not recognize the debt?

Ask the collection agency for written proof, including the creditor’s name, the amount owed, and details about the debt. If the information does not match your records, dispute the debt in writing and keep a copy.

What happens if I make a partial payment on an old debt?

Any payment resets the two-year limitation period under the Limitations Act, 2002. Even a small payment gives the creditor a fresh two years to sue you. Before paying anything on an old debt, check whether the limitation period has already expired.

Can a collector garnish my wages without going to court?

No. The creditor must sue you, win a judgment, and then apply for a garnishment order. The Canada Revenue Agency and federal student loan collectors operate under different federal rules and can garnish wages without a separate court order.

How do I stop collection calls immediately?

File a consumer proposal or declare bankruptcy with a Licensed Insolvency Trustee. Both trigger a legal stay of proceedings that stops all collection activity the day you file.

Talk to a Licensed Insolvency Trustee

If collectors are calling and you cannot pay, a Licensed Insolvency Trustee can help. The initial consultation is free.