Largest Collection Agencies in Canada

What is a collection agency?

Before we identify the largest collection agencies in Canada, we need to define a collection agency for the purposes of this list.

In creating my definition of a collection agency, I am going to address the following issues:

• Are all firms that hold a collection agency license collection agencies?
• Are credit counselling agencies and debt settlement firms collection agencies?
• Are debt buyers collection agencies?
• Are law firms collecting monies on a commission basis considered collection agencies?

With a few exceptions, each province and territory in Canada requires that firms collecting monies owing to others be licensed as a collection agency. As a general rule, collection agencies collect monies owing to others and do so on a commission basis.

With two exceptions, I submit that any firm holding a provincial collection agency license should be considered a collection agency.

Exception 1: Credit counselling agencies

Credit counselling agencies do not fall within my definition of a collection agency, despite the fact that Ontario requires them to be licensed as a collection agency.

The following large credit counselling agencies are licensed as collection agencies under the Ontario Collection and Debt Settlement Services Act:

• Consolidated Credit
• Credit Canada Debt Solutions
• Credit Counselling Society

You will not find these three major credit counselling agencies on the list of the largest collection agencies in Canada.

Exception 2: Debt settlement firms

Debt settlement firms do not fall within my definition of a collection agency, despite the fact that some provinces require them to hold a collection agency license. A debt settlement firm negotiates with a debtor’s creditors in an attempt to eliminate a debt for less than 100 percent of the current outstanding balance.

You will not find any debt settlement firms on the list of the largest collection agencies in Canada.

Some debt buyers are licensed as collection agencies

A few decades ago, it became more common for original creditors—the company that provided you with goods, services, or credit—to sell their unpaid accounts to firms known as debt buyers instead of outsourcing collection efforts to a collection agency. These debt buyers owned the unpaid accounts and stepped into the shoes of the original creditors. It is also more common today for firms whose primary source of income is commission revenues from collecting the unpaid accounts of others to also collect purchased debt as a secondary revenue stream.

Some, but not all, debt buyers do not collect debts on behalf of others. In response to the growing presence of debt buyers, some, but not all, provinces amended their licensing laws to require debt buyers to hold a collection agency license. In our list of the 24 Largest Collection Agencies of Canada, there are a few firms that publicly describe themselves as debt buyers.

Collection law firms do not fall within my definition of a collection agency

I am going to exclude collection lawyers collecting monies on a commission basis from the definition of a collection agency. Under provincial and territorial law, lawyers are exempt from the requirement of holding provincial and territorial collection agency licenses. Lawyers engaged in collection activities on a commission basis are exempt from collection agency licensing requirements because their conduct is subject to disciplinary review by provincial law societies.

This does not change the fact that a handful of lawyers and law firms across Canada do, however, engage in collection activity on a commission basis, using a business model very similar to collection agencies. Some of these collection law firms compete directly with collection agencies. In some instances, these collection law firms operate on a large scale. A few lawyers engaged in collection activities resembling those of collection agencies have faced disciplinary actions brought by provincial law societies.

At some future date, I hope to publish an article on the largest collection law firms in Canada. I anticipate that to be included on this list, a law firm must satisfy four requirements.

Firstly, they must collect monies on behalf of their clients on a commission basis. Secondly, they must utilize individuals whose job descriptions mirror those of collectors at a collection agency. Thirdly, they must use the services of a minimum number of such individuals. Finally, they must publicly hold themselves out as collection law firms.

While one could argue that collection law firms collecting monies on a commission basis, and utilizing the services of individuals whose job descriptions mirror those of collectors at a collection agency, are not collection agencies, these law firms are a type of “hybrid collection agency”.

If it walks like a duck and it talks like a duck, it’s a duck.

Largest Collection Agencies in Canada

ARM Collection Agency
ARO Inc.
Bill Gosling Outsourcing (Allied International)
CBV Collection Services Ltd.
Canaccede International Management Ltd.
Collectrite Credit Bureau Collections
Commercial Credit Adjusters
Common Collection Agency
Credit Bureau of Canada Collections
D&A Group Services
Financial Debt Recovery Ltd.
Gatestone
Go Beyond Collection Agency
iQor Canada and North American Receivable Management Services
Kingston Data and Credit
MJR
MetCredit
NCRI
PRA Group Canada
Partners In Credit
Total Credit Recovery
Transworld Systems Canada Inc.
Tricura
Uplevel

If you believe that a collection agency deserves either to be added to this list or removed from this list, I would invite you to send me an email stating your reasons.