How to Stop Collection Calls in Canada

Taking action when you receive collection calls

In many instances, collectors calling you to demand payment of an account will upset you not only as a result of their comments but also the tone of their voice.

You do not have to be a victim. You can take action to deal with these collection calls.

You might be able to take advantage of laws to stop collection calls. In addition, you can take advantage of one or more tactics to avoid collection calls, depriving the collector of the opportunity to make a demand for payment.

Sending a cease and desist letter

In the collection industry, this written communication is referred to as a cease and desist letter.

These come in different varieties. In some scenarios, a cease and desist letter must be sent by registered mail. In other scenarios, a cease and desist letter can be sent by regular mail, and in some instances via email.

Do not admit owing the debt in a cease and desist letter

A word of caution. You should not acknowledge owing a debt in your cease and desist letter. A written acknowledgement of a debt by you can restart the clock on a limitation period on a specific debt.

Templates for cease and desist letters

Free Word document templates are available for each Canadian jurisdiction. Browse all cease and desist letter templates, or read on for the legal background and find the template that matches your situation.

Eligibility to send a cease and desist letter

In terms of your eligibility to send a cease and desist letter, there are three broad categories. You have the right to send a cease and desist letter if you fall within one or more of the following buckets:

• You are receiving collection calls in connection with a loan, line of credit, or credit card
• You are an Ontario resident, or you are receiving collection calls from a collection agency physically within Ontario
• You live anywhere in Canada except Manitoba, Saskatchewan, Newfoundland and Labrador, Prince Edward Island, or the Yukon

Collection calls in connection with a loan, line of credit, or a credit card

If you are receiving collection calls with respect to a loan, line of credit, or credit card, then under federal law, you have the right to send a cease and desist letter. The specific law can be found in section 7(9)(a), (b), and (c) of the federal Credit Business Practices Regulations, SOR/2009-257.

What is amazing is that relatively few Canadians are aware of the existence of this law.

You only acquire the right to send a cease and desist letter under this federal law if you are receiving collection calls in connection with monies allegedly owing on a loan, line of credit, or a credit card.

This law is unique because it is not limited to collection agents, such as collection agencies. This law gives you the right to send a cease and desist letter to your original creditor.

An example will help illustrate this point.

Matt Shott, an Ontario resident, is receiving collection calls in connection with a credit card from a major Canadian chartered bank. The collector making the collection calls is employed by the chartered bank and works in the company's in-house collection department. According to the bank's records, no payment has been received in the past 90 days.

In accordance with the federal Credit Business Practices Regulations, Mr. Shott sends a cease and desist letter, via registered mail, to the chartered bank making collection calls to him. Once the chartered bank receives this cease and desist letter, it must stop making collection calls to Mr. Shott. This cease and desist letter also prevents this chartered bank from hiring a collection agent, such as a collection agency or a collection law firm, to make collection calls at a future date.

It is important to remember that this law requires the consumer to send a cease and desist letter via registered mail. If you were to send your cease and desist letter via email or regular mail, it might be ignored.

The language in the federal Credit Business Practices Regulations sets out what language must be used in a cease and desist letter.

You have three different options under this federal law:

• Advise the institution to only communicate with you in writing, and provide them with an address where you may be contacted
• Advise the institution that you dispute owing any monies to the institution and that you are prepared for the institution to take the matter to court
• Advise the institution to only communicate through your legal advisor, and you provide both a phone number and an address for your legal advisor.

Use the federal cease and desist letter template in accordance with the federal Credit Business Practices Regulations.

You are an Ontario resident or you are receiving collection calls from a collection agency originating in Ontario

You have the right to send a cease and desist letter if you live in Ontario or if you are receiving collection calls from a collection agency physically located within Ontario.

Under Ontario law, a cease and desist letter can be sent by verifiable means, including email.

The Ontario law regulating collection agencies grants Ontario residents the right to send a cease and desist letter to collection agencies that are making collection calls to them.

Each province and territory has a law affording certain protections to consumers receiving collection calls to their residents. Amongst all these laws, the Ontario law is unique. The Ontario Collection and Debt Settlement Services Act also affords a right to send a cease and desist letter to any Canadian who is receiving collection calls from a collection agency if the collection calls are originating from a collection agency physically located in Ontario.

Section 2(0.1) of the Act reads as follows:

This Act applies to a collection agency or collector that deals with a debtor if either the debtor or the applicable one of the collection agency or the collector is located in Ontario when the dealing takes place.

The Ontario law granting the right to send a cease and desist letter to a collection agency is the Ontario Collection and Debt Settlement Services Act, as well as Regulation 74 enacted under the Act.

Under this law, those eligible to send a cease and desist letter can do one of the following:

• Advise the collection agency that you dispute the debt and suggest that the matter be taken to court
• Inform the collection agency only to communicate with the debtor's lawyer or licensed paralegal, and set out the lawyer or paralegal's address and telephone number

Use the Ontario cease and desist letter template

You live anywhere in Canada except Manitoba, Saskatchewan, Newfoundland and Labrador, PEI, or the Yukon

Most Canadians live where the provincial or territorial statute regulating the conduct of collection agencies affords them the right to send a cease and desist letter to a collection agency.

Unfortunately, the licensing laws in the following jurisdictions do not grant a consumer the right to send a cease and desist letter to a collection agency:

• Manitoba
• Saskatchewan
• Newfoundland and Labrador
• Prince Edward Island
• Yukon

If you live in any of these provinces or the Yukon, and you wish to send a cease and desist letter, then you should see if you can take advantage of one of the following:

• You owe monies on a loan, line of credit, or credit card, and you can send a cease and desist letter, via registered mail, in accordance with the federal Bank Act and Financial Consumer Protection Framework Regulations (for banks) or the Credit Business Practices Regulations (for trust and loan companies, retail associations, and federally regulated insurance companies)
• You are receiving collection calls from a collection agency that are originating from within Ontario, and if so, you send a cease and desist letter in accordance with Regulation 74 of the Ontario Collection and Debt Settlement Services Act

The remainder of this article will focus on those provincial and territorial laws regulating collection agencies, granting their residents the right to send a cease and desist letter.

Alberta

An Alberta resident can send a cease and desist letter, by any verifiable means of written communication, including email, under the Alberta Collection and Debt Repayment Practices Regulation, Alta. Reg. 194/1999, provided they use the language in one of the following:

• Advise the collection agency in writing the debt is in dispute and that the debtor wishes the creditor to take the matter to court, or
• Advise the collection agency in writing to communicate with the debtor's representative, provides a current address and telephone number for the representative, and the debtor's representative makes arrangements to discuss the debt with the collection agency, and the debtor's representative discusses the debt in accordance with the arrangements

Use the Alberta cease and desist letter template

British Columbia

A British Columbia resident can send a cease and desist letter to a collection agency under the British Columbia Business Practices and Consumer Protection Act.

A British Columbia resident can stop collection calls by doing any one of the following:

• A collector may only communicate in writing with a debtor after the debtor has notified the collector to only communicate with the debtor in writing
• A collector may not communicate with a debtor after a debtor has notified that collector that the debt is in dispute and that the debtor would like the creditor to take the matter to court
• A collector may not communicate with anyone other than the debtor's lawyer after the debtor has notified the collector to only communicate with the debtor's lawyer and has provided an address for the lawyer

Use the British Columbia cease and desist letter template

New Brunswick

A New Brunswick resident can send a cease and desist letter to a collection agency under General Regulation, NB Reg. 84-256, enacted under the New Brunswick Collection and Debt Settlement Services Act.

A New Brunswick resident can stop collection calls under New Brunswick law if he or she does any one of the following:

• Advise the collection agency, or collector, in writing to only communicate with the debtor in writing and has provided the debtor's address where the debtor may be contacted
• Advise the collection agency, or collector, in writing to only communicate with the debtor's legal advisor and has provided an address for the legal advisor
• Advise the collection agency, or collector, via registered mail, that the debt is in dispute and that the debtor would like the creditor to take the matter to court

Use the New Brunswick cease and desist letter template

Northwest Territories

A resident of the Northwest Territories can send a cease and desist letter under the Debt Collection Practice Regulations, NWT Reg 049-2003, enacted under the Consumer Protection Act, RSNWT 1988, c C-17.

A resident of the Northwest Territories can stop collection calls under territorial law by notifying the collection agency in writing to communicate with the debtor in writing only, providing the debtor's address.

Use the Northwest Territories cease and desist letter template

Nova Scotia

A Nova Scotia resident can send a cease and desist letter to a collection agency under the Nova Scotia Collection and Debt Management Services Act, RSNS 1989, c 77. The letter must be sent by registered mail.

Under paragraph 20(1)(e)(iii) of the Act, a Nova Scotia resident can stop collection calls by advising the collection agency, by registered mail, that the debt is in dispute and requesting that the creditor take the matter to court.

Use the Nova Scotia cease and desist letter template

Nunavut

Residents of Nunavut can send a cease and desist letter under the Consumer Protection Regulations, RRNWT (Nu) 1990 c C-16.

A resident of Nunavut can stop collection calls by notifying the collection agency in writing to communicate with the debtor in writing only, providing the debtor's address.

Use the Nunavut cease and desist letter template

Ontario

See content under the subheading You are an Ontario resident or you are receiving collection calls from a collection agency originating in Ontario.

Quebec

A resident of Quebec can send a cease and desist letter to a collection agency under An Act respecting the collection of certain debts, CQLR c R-2.2. Under section 3 of the Act, a Quebec resident can stop collection calls by contesting the debt in writing and notifying the creditor that the creditor may proceed with legal action.

Use the Quebec cease and desist letter template