What happens when PC Financial sends you to collections
PC Financial tries to collect the debt themselves first. You'll get reminder letters, phone calls, texts and emails from their internal team.
If you don't pay within 90 to 180 days, PC Financial assigns or sells the account to a collection agency. The agency contacts you directly from that point. The original debt now shows as a collection entry on your credit report.
You still owe the money to PC Financial. The collection agency is just the company chasing you for it.
Will PC Financial collections affect my credit score?
Yes. Once your PC Financial debt is reported to Equifax or TransUnion, it's one of the most damaging marks on a credit report.
A collection stays on your report for six years from when you first fell behind, then drops off automatically. Paying it doesn't remove it early. It just changes to paid instead of outstanding.
The first thing to do is check your own report and see whether the PC Financial collection is actually on there, and whether the details are right.
What to do if PC Financial sends you to collections
These steps apply to most consumer debts, including credit cards, loans, phone bills, utilities and store accounts.
Which creditors have extra collection powers?
A few creditors have powers beyond the normal collection process. For these, the limitation and settlement steps above work differently.
Government debt is the biggest exception. The Canada Revenue Agency can garnish your wages, freeze your bank account, and register a lien on your property, all without a court order. It can also take your tax refund and federal benefits. Other government debts, like benefit overpayments and court-ordered support, carry similar enforcement powers.
Secured debt is the other case. If the debt is tied to an asset, like a mortgage or a car loan, the lender can repossess or foreclose instead of just suing you.
Toll roads like Highway 407 can block your licence plate renewal until you pay, and the usual provincial limitation period doesn't stop them.
If your debt falls into one of these, get advice specific to that type before you rely on the steps above.
Can you deal with PC Financial directly?
Sometimes. Contact PC Financial's billing department and ask if the account can be recalled from the collection agency.
Some companies take the account back if you arrange payment directly with them. Others won't. Once it's assigned, you deal with the agency.
Even if you pay PC Financial directly, the collection entry on your credit report doesn't disappear. It updates to show as paid, but the record stays for six years in most provinces.