Canada Debt Collectors Guide: Stop Harassment and Verify

What are your rights when a debt collector contacts you in Canada?

You have the right to be treated fairly, to receive written details about the debt, to dispute or request verification, and to restrict or stop contact in most provinces. Collectors must follow provincial laws on call frequency and hours, cannot harass you, and cannot discuss your debt with others without your consent.

• Core rights across Canada:
  • Written notice: In most provinces, collectors must send a written notice identifying the creditor, amount owed, and the agency before or shortly after first contact. In Ontario, they must send this and wait 6 days before calling.
  • No harassment: Threats, abusive language, false statements, or pressure tactics are prohibited. They cannot threaten legal action they do not intend to take.
  • Privacy: They cannot disclose your debt to employers, family, or neighbours, except to confirm your contact information, and must stop contacting your workplace if you ask.
  • Contact restrictions: Provinces limit call hours and frequency and often allow you to specify how you want to be contacted.
  • Verification and dispute: You can ask for written proof and dispute errors. They must pause active collection until they respond with sufficient information.
  • Cease contact: A written cease-communication letter usually forces them to stop contacting you except to advise of legal action or to serve court papers, as permitted by provincial law.
• Key laws and authorities:
  • Provincial consumer protection and collection legislation governs collectors (examples: Ontario’s Collection and Debt Settlement Services Act; British Columbia’s Business Practices and Consumer Protection Act; Alberta’s Consumer Protection Act; Quebec’s Consumer Protection Act).
  • Federal Bankruptcy and Insolvency Act: Filing a consumer proposal or bankruptcy triggers an automatic stay that stops collection nationwide.
  • Financial Consumer Agency of Canada (FCAC): Oversees complaint-handling obligations of federally regulated lenders (banks) and credit card issuers.
  • Office of the Superintendent of Bankruptcy (OSB): Oversees Licensed Insolvency Trustees and the insolvency system.

How do you make collection calls stop legally?

Send a written cease-communication request citing your province, and the agency must stop most contact except for legal notices or to confirm they will cease. If you need immediate, comprehensive protection, filing a consumer proposal or bankruptcy creates a legal stay that stops all collection activity.

1. Decide your approach:
   • If the debt may be valid but disputed: Send a verification request first, then a cease letter if needed.
   • If you want the calls to stop now: Send a cease-communication letter immediately.
   • If you are facing lawsuits or garnishment: Speak to a Licensed Insolvency Trustee (LIT) about a proposal or bankruptcy for an automatic stay.
2. Draft and send a cease-communication letter:
   • Include: your name and mailing address, the agency’s file number, a clear statement that they must cease contacting you, and your preferred contact method (often mail only).
   • Delivery: Send by registered mail or courier with tracking (typical registered letter CAD 11-15). Keep a copy and the receipt.
   • Effect: In most provinces, the agency must stop calling, texting, or emailing, except to notify you of specific legal steps or to acknowledge your request.
3. Use a short template:
   • Subject: Cease Communication - File [number]
   • Text: I require you to cease all communication with me regarding the above-referenced account. Any further communication must be by mail only. If you intend to commence legal proceedings, your only further contact may be to provide formal notice. This request is made under [your province’s collection law].
4. If they keep calling:
   • Record dates, times, numbers, and what was said. You may record calls you are a party to in Canada.
   • File a complaint with your provincial regulator. Provide your call log, copies of letters, and proof of delivery.
5. Immediate stop using a legal stay:
   • Consumer proposal or bankruptcy filed through an LIT under the Bankruptcy and Insolvency Act stops all collection calls, lawsuits, and garnishments right away.

How do you verify that a debt is real and accurate?

Ask the collector in writing to provide a detailed validation package: the original creditor’s name, account number, itemized amount, contract or agreement, statements, and proof of assignment or authority to collect. Do not pay or acknowledge the debt until you receive and review these documents.

1. Send a verification request letter:
   • Ask for:
     • Original creditor and account number
     • Itemized balance (principal, interest, fees) and the contract or cardholder agreement allowing them
     • Full account history or statements showing the last payment
     • Proof the agency owns or is authorized to collect (assignment letter or agency authorization)
     • Collector’s licence number and province of licence
   • Say you dispute the debt until verification is received and request they pause active collection. Send by registered mail and keep copies.
2. Evaluate what you receive:
   • Mismatched name or account: Ask them to correct or close the file.
   • Amount inflated by improper fees: Many provinces restrict adding fees unless the contract and law allow it. Demand removal of unlawful charges.
   • Old debt: If the last payment or written acknowledgment is past your province’s limitation period, state you will not pay and will defend any claim.
3. Dispute with credit bureaus:
   • Submit disputes to Equifax Canada and TransUnion Canada with your documents.
   • Negative items typically remain for up to 6 years from the date of default across Canada. If verified inaccurate, the bureaus must correct or delete.
4. Identity theft:
   • Tell the collector and creditor in writing. File a police report if appropriate.
   • Place fraud alerts with Equifax and TransUnion. Ask for copies of application forms with signatures/IP addresses.

What limits apply to calls, texts, and emails from collectors by province?

All provinces limit abusive practices and regulate call frequency and hours, and most let you demand reduced or no contact. Ontario and British Columbia, for example, require specific written notices and restrict how often and when collectors may call.

Note: Specific call-hour windows, maximum contact counts per week, and notice timing vary by province. Your provincial regulator’s website publishes the current detailed rules and complaint forms.

What is the statute of limitations on unpaid debts in Canada?

For most consumer debts, a creditor has 2 years from your last payment or written acknowledgment to sue in most provinces, and 3 years in Quebec. After that, they may still ask for payment, but you can refuse, and you can defend any lawsuit based on the expired limitation period.

• Limitation by region:
  • Most provinces and territories: 2 years (for example, Ontario, British Columbia, Alberta, Saskatchewan, Manitoba, Nova Scotia, New Brunswick, Newfoundland and Labrador, PEI, Yukon, NWT, Nunavut).
  • Quebec: 3 years (civil prescription) for most consumer debts.
• What resets the clock:
  • A payment of any amount
  • A written acknowledgment that you owe the debt (emails count)
  Avoid saying you owe the debt before it is verified. Use neutral language: “I do not acknowledge this debt. Please send written verification.”
• Effect of expiry:
  • Collectors can request payment, but cannot successfully sue if you raise the limitation defense.
  • Credit reporting is separate: a collection item usually remains up to 6 years from the default date, even if the limitation to sue has expired.

How do you respond if you are served with a lawsuit or a garnishment notice?

Do not ignore court papers. File your response within your province’s deadline, consider defenses or settlement, and get legal advice. Garnishment usually follows a judgment, except for Canada Revenue Agency debts; a consumer proposal or bankruptcy can stop or lift most garnishments.

1. Deadlines to respond to a claim (typical small claims/civil court timelines):
   • Ontario: 20 days to file a defence if served in Ontario (longer if served outside).
   • British Columbia: 14 days to file a reply after service in BC.
   • Alberta: 20 days if served in Alberta.
   • Quebec: 15 days to contest a claim in the Court of Quebec (civil division).
   • Other provinces: commonly 20 days. Check your local court rules immediately.
2. Common defenses and strategies:
   • Limitation period expired
   • Debt not yours or identity theft
   • Amount includes unlawful fees or wrong calculations
   • No proof of assignment or standing by the collector
   • Negotiate settlement with a full and final release
3. Garnishment basics:
   • After judgment, wages and bank accounts can be garnished, subject to exemptions and limits that vary by province.
   • CRA can garnish without court judgment for tax and certain government debts.
   • Filing a consumer proposal or bankruptcy stops most garnishments immediately.
4. If served:
   • Mark the response deadline on your calendar.
   • Gather your call log, letters, contracts, statements, and verification requests.
   • Consider legal advice or duty counsel. Many community legal clinics assist with forms.

How do consumer proposals or bankruptcy stop collections?

Filing a consumer proposal or bankruptcy with a Licensed Insolvency Trustee creates an automatic stay of proceedings under the Bankruptcy and Insolvency Act. The stay stops calls, lawsuits, and garnishments across Canada, including those by debt buyers and original creditors.

• Consumer proposal:
  • What it is: A binding settlement to repay a portion of your unsecured debt over up to 5 years, often interest-free.
  • Effect: All collection action stops. If creditors holding the majority of proven claims accept, all are bound.
  • Cost: No upfront professional fee to you; LIT fees are set by tariff and paid from your monthly proposal payments.
• Bankruptcy:
  • What it is: A legal process to discharge most unsecured debts you cannot repay.
  • Effect: Calls, lawsuits, and garnishments stop. Some debts (fines, support, most student loans under 7 years) are not discharged.
  • Cost: Typical first-time bankruptcies start around CAD 1,800-2,400 depending on income and assets; monthly payments vary with surplus income guidelines.
• Process to file:
  1. Free consultation with an LIT to review your budget, debts, and options.
  2. Choose proposal or bankruptcy, complete forms, provide ID and pay stubs.
  3. LIT files documents with the OSB; the stay begins immediately.
• Impact on credit:
  • Consumer proposal: R7 rating; remains on file for the lesser of 3 years after completion or 6 years from filing.
  • Bankruptcy: R9 rating; first bankruptcy typically remains 6-7 years after discharge depending on bureau and province.

How do you make a complaint or report harassment?

Complain to your provincial consumer protection regulator and provide your call log, letters, and recordings. If the creditor is a bank or federally regulated lender, also use the bank’s complaint process and escalate to the Financial Consumer Agency of Canada.

• Where to complain:
  • Ontario: Consumer Protection Ontario
  • British Columbia: Consumer Protection BC
  • Alberta: Service Alberta - Consumer Investigations
  • Quebec: Office de la protection du consommateur
  • Manitoba: Consumer Protection Office
  • Saskatchewan: Financial and Consumer Affairs Authority
  • Nova Scotia: Service Nova Scotia
  • New Brunswick: Financial and Consumer Services Commission
  • Newfoundland and Labrador: Consumer Affairs, Service NL
  • Prince Edward Island: Consumer, Corporate and Insurance Services
  • Territories: Territorial consumer affairs offices
  • Banks and federally regulated lenders: Start with the bank’s complaint process, then escalate to FCAC if unresolved.
• What to include:
  • Your name, file number, collector’s name and licence (if known)
  • Dates and times of contacts, copies of letters, voicemails, and your cease-contact or verification letters
  • Details of any prohibited conduct (for example, threats, contacting your employer, excessive calls)
• Cost and outcome:
  • Complaints are free.
  • Regulators can fine agencies, suspend licences, and require compliance, which typically stops the behaviour.

What mistakes should you avoid when dealing with debt collectors?

Do not make “good faith” payments or admit you owe the debt before you receive written verification, and do not give collectors direct access to your bank account. Never ignore court papers, and keep all communications in writing where possible.

• Avoid re-starting the limitation clock:
  • Do not say “I owe,” “I will pay,” or make a small payment until verified.
  • Use neutral language and request written proof.
• Protect your banking:
  • Do not give post-dated cheques or pre-authorized debits to a collector.
  • If an old creditor has your account info, consider switching to a new account at a different bank.
• Keep records:
  • Create a file with a call log, letters, and receipts for registered mail.
  • Record your own calls if needed and legal in Canada (one-party consent).
• Choose the right helper:
  • Avoid unlicensed debt settlement firms or anyone asking for large upfront fees.
  • For legal protection or proposals, only Licensed Insolvency Trustees can file under the BIA.

How is negotiating or settling with a collector best handled?

Negotiate only after you verify the debt and understand its legal status, and always get any deal in writing before paying. Aim for a lump-sum discount or affordable payment plan with a clear “paid in full” or “settled in full” release.

• Preparation:
  • Confirm the limitation status. If time-barred, you have leverage and should not pay unless a strategic reason exists.
  • Set a realistic budget and maximum offer amount.
• Negotiation tips:
  • Start low if offering a lump sum (for example, 20-40% on older purchased debt) and move gradually.
  • Condition any payment on a written settlement letter that includes the amount, due date, that the account will be closed with a zero balance, and that they will report it as paid/settled to the credit bureaus.
  • Pay by traceable means (no direct account access). Keep the receipt and settlement letter forever.
• If they refuse:
  • Reassess whether a consumer proposal would deliver a better overall reduction across all your debts with legal protection.

What does a proper paper trail look like to protect you?

Maintain a dated file with your call log, copies of all letters, proof of delivery, and any recordings or screenshots. This evidence helps stop harassment, supports complaints, and strengthens your defense if sued.

• Set up your system:
  • Folder structure by creditor/collector and date
  • Call log with date, time, number, agent name, and summary
  • Copies of verification requests, cease letters, and responses
  • Canada Post registered mail receipts and tracking confirmations
  • Credit reports before and after disputes
• Update after each contact and save backups to a secure location.

How much might this cost and what timelines apply?

Most steps to stop harassment and verify a debt cost little or nothing: complaints are free, and registered letters cost about CAD 11-15 each. If you pursue a consumer proposal or bankruptcy, LIT consultations are free and fees are built into your payments.

When should you hire a lawyer or expert?

Hire a lawyer if you are sued, face complex disputes, or need help asserting defenses like limitation periods or identity theft. See a Licensed Insolvency Trustee if you need a binding solution to stop collection, settle multiple debts, or stop garnishments.

• Consider a lawyer when:
  • You received a statement of claim or garnishment order
  • You have cross-province issues or a large alleged debt
  • You suspect violations of provincial collection laws and want remedies beyond a regulator complaint
  • You are negotiating a complex settlement or release
• See a Licensed Insolvency Trustee when:
  • Multiple collectors are calling, or a lawsuit is filed
  • You need the legal stay a consumer proposal or bankruptcy provides
  • You want a structured plan to reduce debt with creditor voting
• Other help:
  • Nonprofit credit counsellors can help with budgeting and may arrange voluntary debt management plans, but these do not stop lawsuits or all interest and do not bind all creditors.

What are the next steps to protect yourself today?

Freeze the noise, force everything into writing, and choose your path based on verification and your budget. Use the steps below to stop harassment, verify the debt, and decide whether to dispute, settle, or seek insolvency protection.

1. Get organized now:
   • Pull your free credit reports from Equifax and TransUnion.
   • Start a call log and a folder for each debt.
2. Stop harassment:
   • Send a cease-communication letter to any agency that is calling excessively.
   • Tell them not to contact you at work.
3. Verify before you pay:
   • Send a verification request to each collector. Do not acknowledge the debt.
   • Review documents for accuracy, fees, and limitation issues.
4. Choose a strategy:
   • Time-barred or inaccurate: Send a refusal-to-pay and dispute notices; complain to the regulator if calls continue.
   • Valid but unaffordable: Consult an LIT about a consumer proposal for a reduced, fixed payment and legal protection.
   • Small and manageable: Negotiate a discounted lump sum with a written release.
5. Follow through:
   • File complaints if laws are violated.
   • Update your credit reports with disputes and keep all letters and receipts.

Quick scripts you can use

• On a call: “Please send everything in writing. I do not acknowledge this debt. Do not call my workplace.”
• Verification opener: “I dispute this account and request full written verification, including the original contract, itemized balance, last payment date, and proof you are authorized to collect.”
• Limitation stance: “Based on my records, this debt is beyond the limitation period. I will not be making any payment and will defend any claim.”

Core Canadian statutes and bodies to reference

• Bankruptcy and Insolvency Act (automatic stay via proposals/bankruptcy)
• Provincial collection laws (examples):
  • Ontario: Collection and Debt Settlement Services Act and regulations
  • British Columbia: Business Practices and Consumer Protection Act
  • Alberta: Consumer Protection Act and Collection and Debt Repayment Practices Regulation
  • Quebec: Consumer Protection Act
• Financial Consumer Agency of Canada (federally regulated financial institutions)
• Office of the Superintendent of Bankruptcy (OSB)