The CDSSA and its regulations prohibit collection agencies and collectors from engaging in certain types of conduct.

Before contacting a debtor

Before you can contact a debtor to demand payment, you must send a written notice to the debtor. You can send the notice by regular mail or email. The notice must include:

  • the name of the creditor
  • details about the debt, including the balance owing and product type (for example, line of credit or credit card)
  • the name of the collection agency and collector demanding payment
  • the agency’s authority to demand payment of the debt
  • the disclosure statement, “Debt Collection: Information About Your Rights”

See subsection 21(2) of the General Regulation for the complete list of information requirements for a written notice.

Also see subsections 21(3) and 21(4) of the General Regulation and Ontario Regulation 247/18 made under the CDSSA for more information about contacting a debtor.

Initial contact with a debtor

You must wait 6 calendar days after sending a written notice before you can:

  • contact the debtor
  • demand payment
  • attempt to collect payment from the debtor

If the debtor tells you that they did not receive the written notice, you must:

  • stop communicating with the debtor
  • send another copy of the written notice to the address the debtor gives you
  • wait 6 more days until you can contact the debtor again

On or after 6 days, you can contact a debtor up to 3 times within a 7-day period on behalf of the same creditor. See sections 21 and 22 of the General Regulation for more information.

After initial contact with a debtor

After you have made initial contact with a debtor,  you cannot contact the debtor more than 3 times within a 7-day period unless additional contact was agreed to, requested or initiated by the debtor, or if contact is by mail. This rule does not apply until you have spoken to the debtor in person or by phone.

See sections 21 and 22 of the General Regulation for more information.

Rules on using aggressive tactics or false information

You cannot contact anyone in relation to a debt:

  • between 9 p.m. and 7 a.m. (debtor’s local time) from Monday to Saturday
  • on a Sunday, except between 1 p.m. and 5 p.m. (debtor’s local time)
  • on a public holiday

When dealing with a debtor, you cannot:

  • publish or threaten to publish the debtor’s failure to pay
  • use threatening, profane, intimidating or coercive language
  • use excessive or unreasonable pressure
  • give false or misleading information
  • communicate in a harassing manner or with a frequency that constitutes harassment
  • communicate in a way that incurs charges to the debtor (for example, pay-as-you-go, long distance or text charges)
  • threaten legal action without the creditor’s written authority to commence legal proceedings
  • continue contacting the debtor after the debtor advises you they are disputing the debt and requests that the matter be taken to court

See section 22 of the CDSSA and sections 20-25 of the General Regulation for more information about rules on using aggressive tactics and false information.

When you can contact a debtor’s employer

You can contact a debtor’s employer only if:

  • the debtor’s employer has guaranteed to pay the debt and the contact is about that guarantee
  • the debtor has given you written permission
  • the contact is about payments that relate to a court order or judgment, or an automatic deduction from the debtor’s salary (for example, an assignment or garnishment of wages given to a credit union or caisse populaire)
  • you contact them only once, to confirm that the debtor works there, the debtor’s job title, and/or the debtor’s business address

See subsection 22(4) of the General Regulation for more information about contacting a debtor’s employer.

When you can contact other people about a debtor

You can contact a debtor’s spouse, family member, someone in the debtor’s household, or a relative, neighbour, friend or acquaintance of the debtor only if:

  • that person has guaranteed to pay the debt and the contact is regarding that guarantee
  • the debtor has requested that you contact the person to discuss the debt
  • you are requesting the debtor’s home address or telephone number because you do not have the debtor’s contact information

See subsection 22(3) of the General Regulation for more information about contacting other people about a debtor.

Trying to collect from the wrong person

You cannot contact or attempt to contact someone if:

  • you know or reasonably should know they are not responsible for the debt
  • they have told you that you have the wrong person – unless you have taken reasonable steps to confirm you do have the right person

See subsection 22(5) of the General Regulation for more information about trying to collect from the wrong person.

What to do before taking legal action

Before you recommend that a creditor starts a legal proceeding to collect a debt, you must notify the debtor that you intend to make the recommendation.

See section 23 of the General Regulation for more information about taking legal action.

If the debtor sends you a notice suggesting that the matter be taken to court, you cannot contact or attempt to contact the debtor.

You can only contact the debtor if they consent to or request contact.

If the debtor or the debtor’s lawyer or paralegal sends you a notice, requesting that you communicate only with them, you cannot contact the debtor directly – you must only communicate with their lawyer or paralegal.

See subsections 22(1) and 22(2) of the General Regulation for more information about what to do if a debtor seeks legal action.

Charges not part of debt

You cannot ask the debtor to pay for charges incurred by your agency or the creditor (for example, commissions).

If a debtor’s cheque bounces, you can get back all reasonable charges from the debtor if:

  • the agreement between the creditor and debtor states that the debtor is responsible for these charges and states the amount of the charge
  • the creditor has informed the debtor (for example, in the terms and conditions of their agreement) that the debtor is responsible for non-sufficient funds (NSF) or other related charges, and the debtor knows or should have known that they would be responsible for any charges and the amount of any charges

See section 25 of the General Regulation for more information about charges.

Call recording

If your agency employs 10 or more collectors, you must record all phone calls that relate to the collection of a debt (for example, phone calls to or from a debtor, debtor’s employer or debtor’s family). You must also advise the person that the call is being recorded to comply with the CDSSA.

You must keep recordings in a readily accessible format for one year after the day each call is made or received. You may anonymize any numbers that identify credit card, bank account or other financial account information.

The person who made or received the recorded call can submit a written request for a copy of the recording. The Registrar can also request a copy. You must provide a copy of the recording at no charge within 10 days of receiving the request.

You do not need to record phone calls with a creditor of a debt, or a credit counselling agency or consumer counselling agency providing debt settlement services.

See sections 31 and 32 of the General Regulation for more information about call recording.