Alberta Debt Collection Laws

The legal framework governing Alberta debt collection

Debt collection in Alberta is regulated by provincial legislation that ensures fair treatment and transparent practices. The key laws are:

• Consumer Protection Act (Alberta)
  The primary legislation that requires all collection agencies, collectors, debt repayment agencies, and debt repayment agents to be licensed.
• Collection and Debt Repayment Practices Regulation (Alberta Regulation 194/1999)
  Establishes specific prohibited practices and standards that collection agencies must follow.
• Limitations Act (RSA 2000, c L-12)
  Sets the two-year limitation period for legal action on most debts.

Service Alberta enforces these consumer protection rules and investigates complaints against collection agencies. You can verify whether a collection agency is correctly licensed by contacting Service Alberta at 1-877-427-4088.

Alberta debt collection laws

Debt collection agencies must follow specific rules when pursuing Albertans for debt.

First, debt collection agencies, debt collectors, and debt repayment agencies must be licensed in Alberta. They must use the name on their licence when speaking with you or sending correspondence.

If a debt collector contacts you, they must provide:

• The creditor they represent
• Details of the debt
• When the account was sent to collections
• The amount owing

You are not required to respond immediately. It is often best not to acknowledge the debt, answer questions, or provide personal information until you confirm the facts.

When entering a debt repayment agreement, the collector must disclose in writing any non-sufficient funds (NSF) fees before submitting a payment.

If you make a payment in person, or request a receipt, the collection agency must provide one. This applies to all cash transactions and payments.

If you request an account of the debt, the agency must provide it. They are only required to do this once every six months. If they cannot provide it within 30 days, they must stop collection activity until they can.

When can debt collection agencies in Alberta contact me?

Debt collection agencies may contact you:

• Weekdays and Saturdays: 7:00 am to 10:00 pm (local time)
• Sundays: 1:00 pm to 5:00 pm (local time)

Source: Collection and Debt Repayment Practices Regulation, s. 9(1)(g), Alberta Regulation 194/1999

How many times a day can a debt collector call in Alberta?

Debt collection agencies may contact you no more than three times in any seven-day period.

This does not include:

• Third-party contact
• Mistaken contact
• Contact by traditional mail

Anything beyond this may be considered harassment.

Can a debt collector in Alberta contact my friends or family?

A collection agency may contact your spouse, partner, relative, neighbour, friend, or acquaintance only to request:

• Your home address
• Your personal phone number
• Your employment phone number

They cannot discuss your debt unless that person is a guarantor.

Can a debt collector in Alberta contact me at work?

Yes, unless you ask them not to. If you request that they stop contacting you at work, you must make alternative arrangements to discuss the debt.

Can a debt collector in Alberta contact my employer?

A collection agency may contact your employer once to confirm:

• Employment status
• Job title
• Business address

They cannot discuss your debt with your employer.

Debt collection agency rules in Alberta

Collection agencies must comply with strict rules under Alberta law.

Communication restrictions

They cannot:

• Harass you, others, or your employer with repeated calls
• Contact you more than three times in seven days
• Discuss your debt with others without your consent (unless they are a guarantor)
• Discuss your debt with a minor child

Threats and intimidation prohibitions

They cannot:

• Threaten, intimidate, or apply unreasonable pressure
• Use threatening, profane, intimidating, or abusive language
• Threaten physical harm to you, your family, or your property

If this occurs, contact the police and Service Alberta immediately.

False and misleading information prohibitions

They cannot:

• Provide false or misleading information (police, courts, garnishments, liens, or credit history)
• Imply they are part of a law firm or legal department
• Suggest friends or family are responsible unless jointly liable

Legal action and enforcement prohibitions

They cannot:

• Threaten legal action without authority
• Contact you if you dispute the debt in writing and request court action
• Continue contact if you state you are not the debtor (unless proven otherwise)
• Cancel a repayment arrangement you are complying with
• Pursue a non-judgment debt if the last payment or acknowledgement was over six years ago
• Seize property without a court judgment
• Involve the police or threaten jail

Source: Collection and Debt Repayment Practices Regulation, ss. 9–10; Government of Alberta

How long can debt collectors try to collect in Alberta?

Collection agencies can only initiate legal action within two years of:

• The default date
• Your last payment
• Your written acknowledgement of the debt

After two years, the debt is statute-barred.

Source: Limitations Act, RSA 2000, c L-12, s. 3(1)

Debts exempt from the two-year limitation period

Some debts are exempt, including:

• Government debts (CRA and student loans often 6–10 years)
• Child support or alimony arrears
• Civil court damage awards

How the limitation period can restart

The limitation period resets if you:

• Make a payment
• Acknowledge the debt in writing or by email

Can collections take you to court in Alberta?

Once the two-year limitation period passes, collection agencies cannot sue you. However, they may still contact you indefinitely.

Unpaid debts can remain on your credit report for six years.

Sources: Equifax Canada; TransUnion Canada; Financial Consumer Agency of Canada

If a court judgment is obtained before the limitation period expires, enforcement may extend up to 10 years.

How long before a debt becomes uncollectible?

A debt never disappears. After two years, it becomes unenforceable, meaning legal action is no longer available.

What creditors can and cannot do after two years

How to resolve debts in collections in Alberta

Start by confirming the debt is legitimate.

Request:

• Agent name
• Collection agency details
• Creditor name
• Balance owed
• Date sent to collections

Once confirmed, you may:

• Set up an affordable payment plan
• Negotiate a lump-sum settlement
• Request written confirmation before paying
• File a consumer proposal or bankruptcy

If struggling, speak with a Licensed Insolvency Trustee or credit counselling service.

How to complain about a collection agency in Alberta

If a collection agency acts unlawfully, contact Service Alberta.

Service Alberta Consumer Investigations Unit

• Phone: 1-877-427-4088 or 780-427-4088
• Email: service.alberta@gov.ab.ca
• Hours: 8:15 am to 4:30 pm, Monday to Friday

For federally regulated institutions, contact the Financial Consumer Agency of Canada.

Frequently Asked Questions

How long can debt collectors try to collect in Alberta?

They may contact you indefinitely, but legal action is limited to two years from the last payment, acknowledgement, or default date.

Can a collection agency garnish my wages in Alberta?

No. A court judgment is required first.

What happens if I ignore a debt collector?

They may continue contact within legal limits and may pursue court action within two years. The debt may affect your credit for up to six years.

Sources and References

Alberta Legislation

• Consumer Protection Act (Alberta)
• Collection and Debt Repayment Practices Regulation (Alberta Regulation 194/1999)
• Limitations Act (RSA 2000, c L-12)

Government Resources

• Creditors, Collection Agencies and Debt Repayment - Government of Alberta
• Bill Collection and Debt Repayment Tipsheet - Service Alberta
• File a Consumer Complaint - Service Alberta

Credit Bureau Information

• How Long Does Information Stay on My Credit Report? - Equifax Canada
• What Is a Credit Report? - TransUnion Canada
• How Long Information Stays on Your Credit Report - Financial Consumer Agency of Canada

This article is for informational purposes only and does not constitute legal advice. For advice specific to your situation, consult a Licensed Insolvency Trustee or qualified legal professional.