What Happens If You Don't Pay BMO Collections?

BMO collections phone numbers

There are several BMO collections phone numbers. BMO collects in-house first, through its Account Management Unit / Collections team.

Check the number on your statement or collection letter, or use one of BMO's phone numbers below:

• Account Management Unit / Collections Inquiries: 1-888-676-2269
• BMO Customer Care team: 1-877-225-5266

If a third-party collection agency is calling, you can find the right phone number in the table below.

Which collection agency does BMO use?

BMO uses several collection agencies to pursue overdue debts. Consumers report calls on behalf of BMO from multiple collection agencies, including CBV Collection Services, Commercial Credit Adjusters and FDR.

BMO also sells charged-off accounts outright, which is why debt buyers like PRA Group Canada are being reported.

How long before BMO sends you to collections?

A BMO account goes through five stages before a collection agency gets involved. The timeline below covers credit cards, the one product for which the write-off point is confirmed. Personal loans and lines of credit follow a similar path, though those handoffs aren't published.

Stage	Typical timing	What happens
Early delinquency	1 to 30 days	Automated reminder letters, emails and calls. Interest keeps accruing.
Reporting	From day 30	The missed payment shows as a delinquency on your Equifax Canada and TransUnion Canada file.
Recoveries	Roughly days 60 to 120	BMO's collections department works the account and offers payment arrangements.
Charge-off	180 days past due for credit cards	BMO writes the balance off its books. The debt is still legally owed.
External collection	After charge-off	Account sent to a collection agency, or BMO arranges to sue. Owning property makes that more likely.

BMO writes off a credit card balance once principal or interest is 180 days past due.

Source: BMO Financial Group – Second Quarter Report 2022 (Loans and Allowance for Credit Losses)

A charge-off doesn't mean you no longer owe the money. It means BMO has changed the account's status for its own accounting purposes.

Personal loans, lines of credit and mortgages are different. A loan fully secured against something can run for up to 180 days before that happens, and BMO then decides when to write it off based on how likely it is to recover the money.

Will BMO collections affect my credit score?

Yes. When a BMO account goes into collections, it is one of the most damaging marks on a credit file, and it appears as soon as BMO or the collection agency reports it to Equifax and TransUnion.

The collection sits on your report for six years from the date of first delinquency, then drops off. When you pay, the status changes from outstanding to paid, but the record will remain there until the six years have passed.

Source: Equifax Canada – How long does information stay on my credit report

To check whether a collection has been added, request your free credit reports from Canada's two main credit bureaus, Equifax and TransUnion.

Both reports are free. Equifax Canada and TransUnion Canada each supply one on request, and Borrowell gives you access to Equifax weekly at no cost.

Assignment vs sale

When BMO assigns your account to a collection agency, the agency acts on BMO's behalf, and BMO still owns the debt. The agency is paid on commission.

When BMO sells your account to a debt buyer, BMO no longer owns the debt, and the debt buyer assumes ownership. You negotiate with the debt buyer, not with BMO.

What happens when you miss BMO payments

What happens depends on whether the debt is secured against something you own. An unsecured BMO debt, such as a credit card, ends in collections or a lawsuit. A secured debt can lead to repossession, power of sale, or foreclosure, and it typically progresses faster.

BMO credit cards

BMO can suspend your credit card or reduce your credit limit before the account goes into collections. Interest continues to accrue during this period and doesn't stop until the balance is written off at 180 days or you settle it.

If you miss your minimum payment twice in any twelve-month period, BMO will raise your interest rate. The increase depends on which BMO card you hold, and your current rate is printed on your monthly statement.

Source: BMO – Credit Card Cardholder Agreement

BMO line of credit

A personal line of credit is usually a demand loan. BMO can call in the full balance at any time, so there's no 180-day runway like a credit card.

BMO usually acts if you miss a payment or after a review of your file marks you as a higher credit risk. It often reduces or closes your credit limit, so the credit disappears and the full balance becomes due.

BMO overdraft

An unresolved BMO overdraft is converted to a demand loan or sent to collections well before the 180-day credit card write-off point. BMO doesn't publish a specific overdraft timeline.

BMO personal loans

BMO personal loans have fixed payments. A missed payment triggers a demand for the full remaining balance. BMO usually tries to restructure payments before escalating.

BMO mortgages and HELOCs

BMO mortgages and the BMO Homeowner ReadiLine are secured debt. The collection process differs and involves Power of Sale in Ontario or foreclosure in most other provinces.

Can BMO take money from your account to cover a debt?

Yes. BMO can withdraw funds directly from your chequing, savings, or non-registered investment accounts to cover a debt you owe the bank.

This is the right of set-off, and it's written into your BMO account agreement. BMO doesn't need to notify you or sue you first. It can't touch your RRSP, RRIF, or any account you hold at another bank.

Source: FCAC – When a financial institution can take money from your account

BMO's Personal Account Agreement allows the bank to apply a credit balance in one of your accounts to offset a debit balance in another, including loans, lines of credit and credit cards. It can do so without notifying you first, and it applies whether the accounts are joint or individual.

Source: BMO – Agreements, Bank Plans and Fees for Everyday Banking, Personal Account Agreement

What BMO can set off against

BMO can withdraw funds from your chequing, savings, non-registered investments, and joint accounts at BMO.

They can also take money from a joint account to cover one holder's individual debt, even if the other person had nothing to do with it.

If that happens, the other account holder has to resolve it with whoever owed the money. BMO isn't responsible.

What BMO can't touch

BMO can't exercise the right of set-off against accounts or investments you hold at other financial institutions.

BMO can't set off against your RRSP or RRIF. These accounts are held in trust, so they fall outside BMO's reach for collection.

The Canada Revenue Agency can still reach RRSPs and RRIFs to collect unpaid tax debt by issuing a Requirement to Pay under section 224 of the Income Tax Act.

Locked-in retirement accounts like LIRAs and LIFs get extra protection under pension law.

Sources: Income Tax Act, section 224, CRA – Tax collections policies, IC98-1R8

How to protect your money from BMO set-off

If you're behind on a BMO debt and still have other BMO accounts, move your everyday banking to another bank before the situation escalates.

The goal isn't to hide money. It's to prevent the bank from taking funds you need for rent, groceries and utilities.

When does BMO sue for an unpaid debt?

BMO sues for unpaid debt, and the risk increases if you own property. A judgment can attach to your home, a rental or land you own, so even a smaller balance is worth a lawsuit to the bank.

Balance size determines the rest. Small balances are often sold to debt buyers in bulk, while mid-sized balances go to collection agencies.

The largest balances, along with commercial and complex files, end up in court. BMO doesn't publish the thresholds, and they vary from file to file.

Negotiating directly with BMO

When your account is sent to a collection agency, the agency operates within a settlement range pre-authorized by BMO.

People sometimes interpret the agency's flexibility as a willingness to negotiate more than the bank. The authority to discount still comes from BMO.

Timing and ranges

Settlement becomes more probable as the account approaches the 180-day write-off, rather than during the initial weeks of late payment. After BMO records the loss, it aims to recover as much as possible.

Source: Equifax Canada – What is a Charge-Off?

Settlement percentages vary by creditor, account age and who's negotiating. Licensed Insolvency Trustee firms publish industry-wide ranges, but these aren't specific to BMO.

Can you deal with BMO directly?

Sometimes. Call BMO's collections department to ask whether the account can be recalled from the collection agency. Some creditors will take a file back if you commit to paying them directly. Others won't touch it once it's assigned.

If BMO sold the debt rather than assigning it, the debt buyer is the only party that can settle it because BMO no longer owns the account.

Before you pay BMO

Get any settlement agreement in writing before you pay. The letter needs to state that the amount you're paying clears the account in full.

Once the money's gone, you have no leverage. Without that letter, you can't prove the payment was intended to settle the full balance, and BMO or the agency can continue reporting and pursuing the rest.

A partial payment or a written acknowledgment of the debt can restart the statute of limitations in your province.