At a glance
A collection agency can call you, text you, email you, send letters and take you to court. The rest depends on where you live in Canada, because every province has its own rules about what collection agencies can and cannot do.
Collection agencies are companies hired by creditors to recover unpaid debts. They get paid a commission on what they collect. Once your account goes to a collection agency, you deal with them instead of your original creditor.
Most creditors send accounts to collections between 120 and 180 days after you stop making payments, though this varies by creditor.
You have rights. Every province sets limits on when a collection agency can contact you, how often they can call, what they can say, and how long they have to take legal action.
In this guide
How a collection agency contacts you
A collection agency will contact you by phone, text, email, letter or all four. Their job is to get you to pay what you owe. They are persistent by design.
The first contact is usually a letter. It tells you your account has been sent to collections, how much you owe, and who the original creditor is.
After that, the calls start. Most collection agencies run automated dialers that call you repeatedly until you pick up. If you do not answer, they leave voicemails. They also send text messages and emails.
In Ontario, a collection agency must send you a written notice and wait six days before calling you or asking for payment.
Source: Government of Ontario – CDSSA General Regulation, R.R.O. 1990, Reg. 74, s. 21
Who else can a collection agency contact?
A collection agency can contact other people, but only to get your phone number or address. They cannot tell anyone else that you owe money.
The exception is someone who co-signed or guaranteed your debt. The collection agency can discuss the debt with that person because they are also responsible for it.
Source: Financial Consumer Agency of Canada – Dealing with a debt collector
In Ontario, a collection agency can contact your employer once to confirm your employment and get your contact details. They cannot tell your employer anything about the debt.
The only exceptions are if your employer guaranteed the debt, if you gave written permission for the contact, or if the collection agency has a court order.
Source: Government of Ontario – CDSSA General Regulation, R.R.O. 1990, Reg. 74, s. 22
What a collection agency cannot do
Collection agencies in every province must follow a code of conduct. The rules differ by province, but the basics are the same across Canada.
A collection agency cannot threaten you. They cannot use abusive, intimidating or profane language. They cannot lie to you or mislead you about what you owe. They cannot pressure you into paying by using fear or harassment.
Every time a collection agent calls you, they must identify themselves and the company they work for.
Source: Financial Consumer Agency of Canada – Debt collection: know your rights
A collection agency cannot add charges to your debt. The only extras they can add are legal fees (if they sue you) and fees for bounced payments. They cannot charge you for the cost of collecting the debt.
Can a collection agency charge interest?
A collection agency can charge interest only if your original contract with the creditor includes an interest clause. They cannot add new interest on top of the original debt.
How often can a collection agency call you?
Call frequency rules vary by province. Ontario has the strictest rule. A collection agency in Ontario cannot contact you more than three times in a seven-day period per creditor, after they have spoken with you once. Calls you initiate do not count toward that limit.
Source: Government of Ontario – CDSSA General Regulation, R.R.O. 1990, Reg. 74, s. 22
Most other provinces do not set a specific number. Their legislation says collection agencies cannot apply "unreasonable pressure," which is vague and harder to enforce.
You can ask any collection agency to contact you only in writing. Send your request by registered mail.
When a collection agency can call you
Every province sets hours for when collection agencies can call. These are the permitted calling windows as of 2026.
| Province or territory | Monday to Saturday | Sunday |
|---|---|---|
| Alberta | 7 a.m. to 10 p.m. | 7 a.m. to 10 p.m. |
| British Columbia | 7 a.m. to 9 p.m. | 1 p.m. to 5 p.m. |
| Manitoba | 7 a.m. to 9 p.m. | Not allowed |
| New Brunswick | 7 a.m. to 9 p.m. | 1 p.m. to 5 p.m. |
| Newfoundland and Labrador | 8 a.m. to 10 p.m. | 8 a.m. to 10 p.m. |
| Nova Scotia | 8 a.m. to 9 p.m. | Not allowed |
| Ontario | 7 a.m. to 9 p.m. | 1 p.m. to 5 p.m. |
| Prince Edward Island | 8 a.m. to 9 p.m. | Not allowed |
| Quebec | 8 a.m. to 8 p.m. | Not allowed |
| Saskatchewan | 8 a.m. to 9 p.m. | Not allowed |
Calling hours for the Northwest Territories, Nunavut and Yukon are set by territorial consumer protection regulations. Contact your territorial consumer affairs office for current hours.
Sources: Alberta – Collection and Debt Repayment Practices Regulation, s. 12, British Columbia – BPCPA, s. 118, Ontario – CDSSA General Regulation, R.R.O. 1990, Reg. 74, s. 20, Saskatchewan – FCAA, Collection Agents, Newfoundland and Labrador – Collections Regulations, s. 12, Prince Edward Island – Collection Agencies Act Regulations, s. 5(f)
Alberta and Newfoundland and Labrador stand out. Alberta allows calls until 10 p.m. every day, including Sundays. Newfoundland has the same 8 a.m. to 10 p.m. window every day with no separate Sunday restriction.
Quebec has the earliest cutoff at 8 p.m.
Can a collection agency call on statutory holidays?
Most provinces ban collection agency calls on statutory holidays. Ontario, British Columbia, Saskatchewan, Manitoba, Quebec and New Brunswick all prohibit it.
Alberta does not have an explicit statutory holiday ban in its regulation. The regulation restricts calls by time of day only.
Source: Alberta – Collection and Debt Repayment Practices Regulation, Alta. Reg. 194/1999, s. 12(1)(g)
Newfoundland and Labrador also has no separate holiday provision in its Collections Act regulation. Any call outside normal business hours is suspect and should be reported to your provincial consumer affairs office.
Can a collection agency take you to court?
Yes. A collection agency can sue you. If they win, the court gives them the means to collect the money.
A court judgment against you can lead to three things. The collection agency can garnish your wages. They can take money from your bank account. They can register a lien against property you own, including your home.
Before any of that happens, the collection agency must file a lawsuit and win. No collection agency can garnish your wages or freeze your bank account without a court order.
Wage garnishment
A collection agency needs a court judgment before garnishing your wages. The amount they can take depends on your province.
In Ontario, 80% of your net wages are protected. A collection agency can garnish only 20%.
Source: Ontario – Wages Act, R.S.O. 1990, c. W.1, s. 7(2)
In British Columbia, 70% of net wages are protected. The collection agency can take up to 30%.
Source: British Columbia – Court Order Enforcement Act, RSBC 1996, c. 78
Alberta has the weakest wage protection in Canada. The Civil Enforcement Regulation uses a tiered system.
The first $800 of net wages per month are fully protected. Between $800 and $2,400, up to 50% can be garnished. Above $2,400, 100% can be garnished. Each dependent adds $200 to both thresholds.
Source: Alberta – Civil Enforcement Regulation, Alta. Reg. 276/1995, s. 39
Bank account garnishment
A collection agency can withdraw money from your bank account after getting a court judgment. The rules for joint accounts vary by province.
In Ontario, if only one account holder is named in the judgment, the court assumes a 50/50 split. The collection agency can garnish half the balance. The co-owner receives a notice and has 30 days to request a hearing to challenge that split.
Source: Ontario – Small Claims Court Rules, O. Reg. 258/98, Rules 20.08(2) and 20.08(16)
In British Columbia, a collection agency cannot garnish a joint account unless the court judgment names both account holders.
Liens on your home
If a collection agency gets a court judgment, it can register a lien on property you own. A lien is a legal claim against your property. It does not force an immediate sale, but it means the debt must be paid when you sell.
The Canada Revenue Agency (CRA) is different. For tax debts, the CRA can register a lien through a Federal Court certificate without suing you in the traditional sense. The CRA certifies the amount owed, registers it with the Federal Court, and files a memorial against your property.
Source: Canada Revenue Agency – Putting a lien on or seizing your assets
For payroll source deductions and GST/HST you collected but did not remit, the CRA has an even stronger power called a deemed trust. The CRA does not need to register anything. The money is legally considered to belong to the Crown by operation of law.
Source: Canada Revenue Agency – Information on deemed trust
How long a collection agency can chase you
A collection agency can contact you about a debt indefinitely. But they can only sue you within a specific time limit called the statute of limitations.
Once that time limit passes, you still owe the money. The debt does not disappear. But the collection agency loses the ability to take you to court.
The statute of limitations for unsecured debt varies by province. It starts from the date of your last payment or the date you last acknowledged the debt in writing.
| Province or territory | Limitation period | Legislation |
|---|---|---|
| Alberta | 2 years | Limitations Act, RSA 2000, c. L-12, s. 3(1)(a) |
| British Columbia | 2 years | Limitation Act, SBC 2012, c. 13, s. 6 |
| Manitoba | 2 years | The Limitations Act, CCSM c. L150, s. 6 |
| New Brunswick | 2 years | Limitation of Actions Act, SNB 2009, c. L-8.5, s. 5 |
| Nova Scotia | 2 years | Limitation of Actions Act, SNS 2014, c. 35, s. 8(1)(a) |
| Ontario | 2 years | Limitations Act, 2002, S.O. 2002, c. 24, s. 4 |
| Saskatchewan | 2 years | The Limitations Act, SS 2004, c. L-16.1, s. 5 |
| Quebec | 3 years | Civil Code of Quebec, Art. 2925 |
| Newfoundland and Labrador | 6 years | Limitations Act, SNL 1995, c. L-16.1, s. 6(1)(h) |
| Prince Edward Island | 6 years | Statute of Limitations, RSPEI 1988, c. S-7, s. 2 |
| Northwest Territories | 6 years | Limitation of Actions Act, RSNWT 1988, c. L-8 |
| Nunavut | 6 years | Limitation of Actions Act (inherited from NWT) |
| Yukon | 6 years | Limitation of Actions Act, RSY 2002, c. 139 |
Manitoba changed its limitation period from six years to two years on September 30, 2022 under The Limitations Act (SM 2021, c. 44). Many online sources still list Manitoba at six years. That is wrong.
Source: Manitoba – The Limitations Act, SM 2021, c. 44
What resets the statute of limitations?
Making a payment on the debt resets the clock. So does acknowledging the debt in writing. In some provinces, even a verbal acknowledgment counts.
Be careful. If a collection agency asks you to confirm you owe the debt and you say yes, the limitation period starts over.
There is no federal statute of limitations for consumer debt
Some websites claim there is a federal six-year statute of limitations on debt collection in Canada. That is not true for private consumer debts like credit cards or personal loans.
The confusion comes from Section 32 of the Crown Liability and Proceedings Act, which sets a six-year limit for proceedings by or against the federal Crown. It does not apply to debts between you and a private creditor.
Source: Crown Liability and Proceedings Act, R.S.C. 1985, c. C-50, s. 32
The CRA has its own time limits for government debts. As of 2026, the CRA has six years to collect student loan debts issued after August 2003 and EI overpayments, and ten years to collect income tax and GST/HST debts.
Student loans issued before August 2003 and CPP/OAS overpayments have no limitation period. These rules apply only to debts owed to the federal government.
Source: Canada Revenue Agency – Collections limitation period
How collections affect your credit score
A debt sent to collections gets an R9 rating on your credit report. R9 is the worst possible rating. It tells lenders you did not pay.
That R9 stays on your credit report for six years from the date of last activity on the account. Paying the collection before the six-year mark does not remove it from your report.
Retention periods for other negative items vary by province. Bankruptcies stay on your report for six years from discharge in most provinces, but seven years in Ontario, Quebec, Prince Edward Island and Newfoundland.
Source: Equifax Canada – How long does information stay on my credit report?
Source: Financial Consumer Agency of Canada – How long information stays on your credit report
While the collection is on your report, you will find it harder to borrow money. If you are approved for credit, you will pay a higher interest rate.
How to check if a debt is on your credit report
You can get a free copy of your credit report from Equifax Canada and TransUnion Canada. Check the public records section for any collections. If you see a debt you do not recognize, dispute it with the credit bureau in writing.
Can you go to jail for not paying collections in Canada?
No. Owing money is a civil matter, not a criminal one. A collection agency cannot have you arrested.
Canada abolished debtors' prisons in the 19th century. Today, no creditor or collection agency can send you to jail for an unpaid credit card, personal loan, car loan, or utility bill. The worst they can do is sue you in civil court.
There are three narrow exceptions, and none of them are about the debt itself.
The first is fraud. If you took out credit with no intention of repaying it, that is a criminal offence under Section 380 of the Criminal Code. The charge is for the fraud, not the unpaid balance.
Courts have convicted people who ran up tens of thousands of dollars on credit cards immediately before filing for bankruptcy.
Source: Criminal Code, R.S.C. 1985, c. C-46, s. 380
The second is contempt of court. If a collection agency sues you and wins, the court orders you to do things like disclose your finances or attend an examination. Refusing a court order is contempt.
The penalty for contempt can include jail time. The jail time is for ignoring the judge, not for the debt.
The third is tax evasion. Failing to file tax returns or deliberately hiding income from the CRA is a criminal offence under Sections 238 and 239 of the Income Tax Act. This applies to tax debts owed to the federal government, not to private creditors.
Source: Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.), s. 238-239
If a collection agent ever threatens you with arrest or jail, they are breaking the law. Report them to the consumer affairs office in your province.
What not to tell a collection agency
A collection agency's job is to get you to pay. Everything you say during a call gives them information they can use. Here is what to keep to yourself.
Do not confirm the debt is yours until you see it in writing. Ask the collection agency to send you a written notice showing the amount owed, the name of the original creditor, and the date of the debt.
You have the right to this information before you agree to anything.
Do not give your bank account number, credit card number, or any payment details over the phone. A legitimate collection agency will accept payment by mail or through a secure payment portal. Giving account details to someone you cannot verify puts your money at risk.
Do not agree to a payment plan you cannot afford. If you miss payments on a plan, you are back where you started.
In several provinces, making a payment or acknowledging the debt in writing resets the statute of limitations. That means the clock for the collection agency to sue you starts over. A payment plan that fails costs you more than saying no.
Do not tell the collection agency about your assets, your employer, your other income, or your savings. This information helps them decide whether to sue you and how much they can collect through garnishment or liens. You are not required to disclose any of this during a phone call.
Do not argue, yell, or engage emotionally. Collection agents are trained to keep you on the phone. The longer you talk, the more information you give away. If the call is not productive, end it.
What are the 11 words to stop a debt collector?
The phrase is "Please cease and desist all calls and contact with me immediately." It circulates on American personal finance sites as a magic sentence that stops debt collection.
It does not work in Canada. The phrase comes from the Fair Debt Collection Practices Act, a United States federal law. Canada has no equivalent federal statute. Debt collection in Canada is regulated by each province separately.
In Ontario, you can dispute the debt in writing under the Collection and Debt Settlement Services Act. Once the collection agency receives your written dispute, they must stop contacting you until they provide proof of the debt.
Source: Government of Ontario – CDSSA General Regulation, R.R.O. 1990, Reg. 74
In other provinces, you can send a written request by registered mail asking the collection agency to contact you only in writing. Most provincial regulators treat continued phone calls after such a request as harassment.
Stopping the calls does not stop the debt. The collection agency can still sue you. If they have a strong case and the statute of limitations has not expired, cutting off communication makes a lawsuit more likely, not less.
FAQ
Can a collection agency garnish my wages without going to court?
No. A collection agency must sue you and get a court judgment before garnishing your wages. The CRA is the exception. The CRA can garnish wages for tax debts without a court order.
Can a collection agency call my family?
A collection agency can contact your family only to get your phone number or address. They cannot tell your family anything about your debt, unless that family member co-signed or guaranteed the loan.
Can a collection agency call me at work?
In Ontario, a collection agency can contact your employer once to confirm your employment and get your contact information. They cannot tell your employer about the debt. Repeated employer contact is allowed only if your employer guaranteed the debt, you gave written permission, or there is a court order.
What happens if I ignore a collection agency?
The collection agency keeps calling. If they decide the debt is worth pursuing, they sue you. If you ignore the lawsuit, the court enters a default judgment against you. That judgment gives the collection agency the power to garnish wages, freeze bank accounts, or put a lien on your property.
Can I negotiate with a collection agency?
Yes. Collection agencies often accept a lump sum for less than the full amount owed. If you cannot pay the full amount, explain your situation. Get any settlement agreement in writing before you pay.
Can a collection agency add fees to my debt?
No. A collection agency cannot add collection costs to what you owe. The only extras they can charge are legal fees (if they take you to court) and NSF fees on bounced payments. If your original contract includes interest, they can continue charging that interest.
How do I stop a collection agency from calling?
Send a written request by registered mail asking them to contact you only in writing. This stops the phone calls. It does not stop the collection agency from suing you.
How do I know if a collection agency is legitimate?
Contact the consumer affairs office in your province or territory. Every collection agency must be licensed.
Ask the agency for the name of their company, the agent's name, their licence number, and the name of the creditor they are collecting for. Do not give personal information until you confirm the agency is real.
Does paying a collection remove it from my credit report?
No. Paying a collection does not remove it from your credit report. The collection stays on your report for six years from the date of last activity. Paying it changes the status to "paid" but does not erase the record.
What is the statute of limitations on debt in Ontario?
The statute of limitations on unsecured debt in Ontario is two years. It starts from the date of your last payment or the date you last acknowledged the debt. Once two years pass, the collection agency can still call you, but they cannot sue you.
What two debts cannot be erased in bankruptcy?
The two most common debts that survive bankruptcy are court-ordered child and spousal support, and student loans less than seven years old.
Section 178(1) of the Bankruptcy and Insolvency Act lists all debts that are not discharged, including court fines, debts from fraud or misrepresentation, and CRA source deductions held in deemed trust. Talk to a Licensed Insolvency Trustee to find out which of your debts qualify for discharge.
Source: Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3, s. 178(1)
Am I obligated to pay a debt sold to a collection agency?
Yes, if the debt is valid and within the limitation period. When your original creditor sells your debt, the buyer takes over the right to collect.
Companies like Canaccede Financial Group and PRA Group Canada buy defaulted debt portfolios from banks and credit card companies for a fraction of the face value. The debt is still yours.
The buyer must be licensed as a collection agency in your province. You can request written proof of the debt and the chain of ownership from original creditor to current owner.
The statute of limitations still runs from the date of your last payment to the original creditor, not from the date the debt was sold.