Canadian Laws for Collection Agencies Go into Effect Today

Banning threatening language and limiting the number of phone calls collection agencies can make to consumers are just some of the measures the McGuinty government is putting into place to help protect Ontario families from over-aggressive collection agencies.

“Consumers who have been harassed by phone calls from collection agencies will find relief in the province’s new, stronger standard of prohibited practices for collection agencies,” Government Services Minister Gerry Phillips said. “Having a standard also allows the public to have a better understanding of what collection agencies can and can’t do.”

The new regulation of the Collection Agencies Act responds to consumer complaints about collection agencies and harmonizes Ontario law with a nationwide list of prohibited practices to improve consumer protection.

Coming into force today, the regulation adopts the nationally ratified list of prohibited practices, which includes:

• banning the use of threatening or profane language
• strengthening limits on contacting employers
• limiting contact with debtors who have referred the matter to their legal counsel or who suggest the matter be taken to court and
• clarifying definitions of harassment.

To help address the issue of consumer complaints about collection agencies, the regulation also provides a specific limit of no more than three calls to a debtor in any seven-day period. The ministry consulted with the collection industry to develop a standard to be followed by all collectors.

“The government is committed to balancing consumer protection with creditors’ need to collect outstanding debts,” Phillips said.

Consumers who have concerns about a collection agency can contact Ontario’s Consumer Services Bureau at 416-326-8800 or 1-800-889-9768 or visit the ministry’s website consumer protection website at ontario.ca/consumerprotection.