Businesses may engage collection agencies to assist them in the collection of debts from both consumers and businesses. In Canada, agencies must be licensed in a province to operate there. The provincial governments have developed regulations that govern the activities of these agencies. Although exact regulations may differ from province to province, they all follow similar guidelines. Agencies that consistently violate the regulations could have their license to operate in that province revoked.
Here is a sample of the types of regulations agencies must abide by in order to maintain their operating license in a given province:
- A collection agency is not permitted to collect more money than the amount owed by the debtor.
- A collection agency is not permitted to threaten or intimidate a debtor
- A collection agency can only collect from the debtor him or herself, not from the debtor’s family
There are restrictions regarding the time of day and days of the week that an agency can contact a debtor. For example, contact on statutory holidays or Sundays are not permitted in most provinces.