What Collection Agencies Can and Can’t Do in Ontario (2026 Guide)
JASON CAMPBELL
February 19, 2026
What Collection Agencies Can and Can’t Do in Ontario (2026 Guide)
Know Your Rights Under Ontario’s Collection and Debt Settlement Services Act
Introduction
If you’re receiving collection calls, you’re not alone. Thousands of Ontarians deal with debt collectors every year — and many don’t realize they have strong legal protections. Ontario’s Collection and Debt Settlement Services Act (CDSSA) sets strict rules for how collection agencies must behave, when they can contact you, and what they’re absolutely forbidden to do.
This guide breaks down your rights in plain language so you can protect yourself, reduce stress, and take control of your financial situation.
What Collection Agencies Can Do in Ontario
1. They can contact you — but only during specific hours
Under Ontario law, collectors may contact you:
Monday–Saturday: 7 a.m. to 9 p.m.
Sunday: 1 p.m. to 5 p.m.
Never on statutory holidays
If a collector calls outside these hours, they are breaking the law.
2. They can contact you by phone, email, or mail
Collectors are allowed to reach out using various communication methods, but they must:
Identify themselves
State the creditor’s name
Provide the amount owed
Explain that they are a collection agency
They cannot hide their identity or mislead you.
3. They can contact your employer — but only for limited reasons
A collection agency may contact your employer solely to:
Confirm your employment
Confirm your work address
They cannot discuss your debt, threaten wage garnishment, or pressure your employer.
4. They can pursue legal action — if the creditor has the right
A collection agency may recommend or initiate legal action only if the creditor is legally entitled to sue. Before this happens, they must send written notice.
If you receive a lawsuit threat without written documentation, it may be a violation.
What Collection Agencies Cannot Do in Ontario
1. They cannot harass, threaten, or intimidate you
Harassment is illegal. This includes:
Excessive calling
Yelling or using abusive language
Threatening arrest or criminal charges
Implying they are law enforcement
Debt is a civil matter — you cannot be arrested for owing money.
2. They cannot contact you more than 3 times in 7 days
After the first successful contact, collectors are limited to:
3 contact attempts within any 7‑day period
This rule applies to phone calls, voicemails, emails, and texts.
3. They cannot discuss your debt with anyone else
Collectors are prohibited from speaking to:
Family
Friends
Neighbours
Co‑workers
Your employer
Unless you give explicit written consent, your debt is private.
4. They cannot misrepresent themselves
Collectors cannot pretend to be:
Police
Government officials
Lawyers (unless they actually are)
Court representatives
Misrepresentation is a serious offence.
5. They cannot add unauthorized fees
Unless your original contract allows it, a collection agency cannot add:
Collection fees
Additional interest
Administrative charges
If you see unexplained fees, you have the right to dispute them.
6. They cannot continue contacting you if you dispute the debt
If you send a written dispute or request verification, the agency must:
Pause all collection activity
Provide proof of the debt
If they continue calling, they are violating Ontario law.
7. They cannot contact you if you’re working with a Licensed Insolvency Trustee
If you file a:
Consumer proposal, or
Bankruptcy
All collection activity must stop immediately.
Collectors must communicate only with your Licensed Insolvency Trustee (LIT).
This is one of the strongest protections available to Ontarians facing overwhelming debt.
How to Stop Collection Calls Legally
If you want collection calls to stop, you have options:
1. Request written communication only
You can send a letter or email instructing the agency to contact you only in writing.
2. Dispute the debt
If you believe the debt is incorrect, ask for verification.
3. Work with a Licensed Insolvency Trustee
Once you file a consumer proposal or bankruptcy, all collection calls and legal actions must stop.
This is often the fastest and most effective way to regain control.
When to Seek Professional Help
If collection calls are becoming overwhelming, or if you’re unsure whether a collector is acting legally, speaking with a Licensed Insolvency Trustee can give you clarity and options.
An LIT can help you:
Stop collection calls
Review your debts
Explore consumer proposals
Understand bankruptcy
Create a path to financial stability
You don’t have to navigate this alone.
Final Thoughts
Ontario’s debt collection laws exist to protect you. Understanding what collectors can and cannot do helps you stay calm, assert your rights, and avoid being pressured into decisions that aren’t in your best interest.
If you’re dealing with persistent collection calls or financial stress, help is available — and relief may be closer than you think.