Ontario Debt Collection Rules
You have rights. And knowing them is the first step to relief.
If you’re being contacted by debt collectors, you don’t have to face it alone. Many Canadians feel stressed and overwhelmed when collection agencies come knocking, but knowing your rights can make a big difference. Let’s walk you through what collectors can and can’t do in Ontario, and how Spergel can help give you back peace of mind.
What Are the Debt Collection Rules in Ontario?
If debt collectors are reaching out, it’s important to know your rights.
In Ontario, debt collectors must follow strict rules designed to protect you from harassment and unfair treatment. Here’s what you need to know:
- All debt collection agencies must be registered with the Ontario government to operate legally.
- You must receive a written notice — by mail — before any phone calls. This notice must clearly state who the creditor is, how much you owe, and that the agency is authorized to collect on their behalf.
- Collectors must wait 6 days after sending the notice before contacting you by phone.
- Once they’ve reached you, collectors may only attempt contact up to 3 times per week, including messages, calls, and voicemails, unless you give permission otherwise.
- They cannot add extra fees to the debt unless your original agreement allows it.
- Collectors may not contact you at inappropriate times, including before 7:00 a.m., after 9:00 p.m., on statutory holidays, or outside of 1–5 p.m. on Sundays.
- Harassment, threats, or intimidation are strictly prohibited. You have the right to be treated with dignity and respect.
If a collector is breaking these rules, keep a record of their behaviour, and know that help is available. Legal debt relief options like consumer proposals can stop collections immediately.
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allowed
What Collection Agencies Are Allowed to Do
Under Ontario law, collection agencies must follow strict rules. Here’s what they’re legally allowed to do:
Written Notice by Mail
Debt collectors can send you a written notice explaining who they are, the amount you owe, and that they are authorized to collect the debt.
Phone Calls
They can call you up to three times per week (after they’ve successfully reached you). This includes phone calls, voicemails, and messages.
Contacting Your Employer
Debt collectors may contact your employer, but only to confirm your employment status. They can’t do this unless your employer has guaranteed your debt.
Speaking with Family, Friends, or Neighbours
They can contact your family, friends, or neighbors, but only to confirm your contact information. They are not allowed to discuss the nature of the call unless you’ve given permission or the person has guaranteed your debt.
Tip: If collectors cross the line, keep a record of the interaction and reach out for legal advice or debt relief assistance.
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Book a free call with Spergel today, and let’s figure out your next best move to become debt-free.
not allowed
What Collection Agencies Are Not Allowed to Do
Collection agencies are forbidden from doing any of the following:
Trying to collect more than the full balance owed.
Contact During Stat Holidays & Outside Typical Hours
Calling before 7 AM, after 9 PM, on statutory holidays, or outside legal hours on Sundays.
Contact Frequency
Call more than 3 times in a 7-day period without your consent after they have made initial contact with you. They must speak with you or leave an email/voice message; calls with no message left do not count.
Threats or Intimidation
Use threatening language, profanity, excessive/unreasonable pressure or intimidation
Charge Interest
Charge you extra interest or additional fees, although interest may accrue on your debt for other legal reasons.
Give False or Misleading Information
Give false information or recommend any legal action without sending you a notice first.
Calling for Someone Else
If the agency is calling the wrong person, they must cease contact when they’ve been informed of the error, and you have the right to ensure that these calls stop.
If an collection agency is acting inappropriately, you have the option to first send a letter to them explaining why and that you expect them to follow the law, or file a complaint with the ministry. The most effective way to stop them is to put a plan into place that will deal with your debt and protect you from legal action from creditors or collection agencies.
At Spergel, we can help you create a debt repayment plan and handle collection agencies on your behalf. We can also permanently stop collection interactions and help you to generate a stay of proceedings to stop creditors or collection agencies from contacting you again.
You Don’t Have to Face Debt Collectors Alone
Let’s take the pressure off. Speak with a Spergel expert today and explore real, legal solutions to take back control of your finances and stop collection agencies.
What Real Canadians Are Saying
Hear from people who stopped the calls, ended the garnishments, and finally found peace of mind.
where to start
What’s the First Step in Dealing With Debt Collectors in Ontario?
The first step is understanding your rights and then taking action to protect them.
Ontario has clear laws around what debt collectors can and can’t do, but if you’re feeling overwhelmed, you don’t have to figure it all out alone. Speaking with a Licensed Insolvency Trustee (LIT) is a crucial first move. LITs are the only federally regulated professionals in Canada who can offer legal debt relief solutions like consumer proposals and bankruptcies. These solutions don’t just stop the phone calls — they can stop lawsuits, wage garnishments, and freeze interest or penalties.
At Spergel, we’ve helped over 100,000 Canadians break free from collection pressure. We’ll review your situation confidentially and compassionately, and help you choose the best path forward.
Everyone’s Situation is Different. Let’s Talk About You.
Book a free call today, and let’s make a plan together.
General faq
Frequently Asked Questions About Debt Collection in Ontario
How quickly can debt collection stop once I get help?
As soon as you file a consumer proposal or bankruptcy with a Licensed Insolvency Trustee, all collection actions — including phone calls, wage garnishments, and lawsuits — must stop immediately under Canadian law.
Can debt collectors come to my home or workplace?
Debt collectors are not allowed to harass you at your place of employment, and they cannot show up at your home without permission. If this happens, it may violate Ontario’s debt collection laws and should be reported.
Can I be taken to court for unpaid debt?
Yes, in some cases a creditor can sue to recover what you owe. However, filing a consumer proposal or bankruptcy puts an immediate legal stop to all court proceedings and enforcement actions.
What if a debt collector contacts me about a debt that’s not mine?
You have the right to dispute the debt. Request proof in writing and inform the agency of the mistake. If they continue contacting you without clarification, file a complaint with Ontario’s Ministry of Public and Business Service Delivery.
Can collection agencies charge extra fees?
No, debt collectors in Ontario are not legally allowed to add any additional fees to the debt. They can only collect what is owed to the creditor.
Real Canadians. Real Success — Like Eric
Credit card collection calls were causing Eric stress and wouldn’t stop, so he decided to get help. He was close to signing what he called a “debt collection settlement”. Eric had found a lender to borrow enough from to pay off his collection debts. A close friend told him he was crazy to agree to the proposed repayment interest of 30% and Eric decided to call a Licensed Insolvency Trustee instead to help him find a better option.
Eric's story is just one of many
Discover more of our Success Stories of Canadians just like you, or reach out to us so we can help you become debt-free sooner.
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