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Regulation number	Title
2011, c.126	Collection and Debt Settlement Services Act

Under section 11 of the Collection and Debt Settlement Services Act, the Lieutenant-Governor in Council makes the following Regulation:

2018-38; 2017, c.26, s.12

1This Regulation may be cited as the General Regulation – Collection and Debt Settlement Services Act.

2017, c.26, s.12

1.1In this Regulation, “Act” means the Collection and Debt Settlement Services Act.

2009-103; 2017, c.26, s.12

2An application for a licence to carry on the business of a collection agency, to operate a branch office of a collection agency or to act as a collector shall be made to the Director on a form provided by the Director.

2009-103; 2013, c.31, s.4

3(1)An application for a licence to carry on the business of a collection agency or to operate a branch office of a collection agency shall be accompanied by copies of all forms of agreement which the applicant uses or proposes to use with clients in the course of its business and by copies of all forms of letters used or proposed to be used in making demands for the collection of money.

3(2)No form or form letter shall be used by a collection agency or a branch office of a collection agency if the Director objects to the form or form letter.

3(3)If the Director objects to a form or form letter used or proposed to be used by a collection agency or a branch office of a collection agency, he or she shall provide written notice of the objection to the collection agency or the branch office of the collection agency.

3(4)If a collection agency or a branch office of a collection agency alters a form or form letter or proposes to adopt a new form or form letter, the collection agency or the branch office of a collection agency shall file the form or form letter with the Director at least thirty days before the form or form letter is used.

2009-103; 2013, c.31, s.4

3.1(1)A licence to carry on the business of a collection agency expires on the last day of the twelfth month following the issuance of the licence.

3.1(2)A licence to operate a branch office of a collection agency expires on the expiry date for the most recent licence to carry on the business of a collection agency issued to the collection agency with respect to which the branch office operates.

3.1(3)A licence to act as a collector expires on the expiry date for the most recent licence to carry on the business of a collection agency issued to the collection agency for which the collector acts.

3.1(4)Repealed: 2022-52

3.1(5)Repealed: 2022-52

3.1(6)Repealed: 2022-52

3.1(7)Repealed: 2022-52

2009-103; 2022-52

4Repealed: 2022-52

2009-103; 2013, c.31, s.4; 2022-52

5Repealed: 2009-103

2009-103

6(1)A collection agency or a branch office of a collection agency shall display the licence on the premises indicated on the licence.

6(2)A collector, while acting as a collector, shall carry the licence.

6(3)A collection agency, a branch office of a collection agency or a collector shall return the licence forthwith to the Director for amendment where there is a change in the address of the collection agency, the branch office of a collection agency or the collector.

6(4)Where a collection agency, a branch office of a collection agency or a collector ceases to carry on the business in respect of which a licence has been issued, the licence shall thereupon be void and the collection agency, the branch office of a collection agency or the collector shall return the licence to the Director within fifteen days of the discontinuance, accompanied by a note of explanation.

6(5)Where a licence is lost or destroyed, the holder of the licence shall apply immediately to the Director for a copy of the original.

2013, c.31, s.4

7An application for a licence to carry on the business of a collection agency shall be accompanied by a copy of the balance sheet listing all assets, liabilities and contributed capital of the applicant signed

(a) by the person carrying on the business of a sole proprietorship,

(b) by two of the partners of a partnership, or

(c) by an officer, with the corporate seal affixed to the statement, if a corporation.

2009-103

8The Director may, at any time, require a financial statement from a collection agency.

2013, c.31, s.4

9(1)A collection agency shall, before being licensed under the Act, deliver to the Director a bond of a surety company in the amount of ten thousand dollars.

9(2)A bond delivered under subsection (1) shall be forfeited where

(a) the collection agency in respect of whose conduct the bond is conditioned or any partner, official, employee or collector of the collection agency has been convicted of

(i) an offence under the Act or any regulation made thereunder, or

(ii) an offence under the Criminal Code, chapter C-34 of the Revised Statutes of Canada, 1970, where that offence relates in any way to the business of the collection agency,

(b) a judgment has been given in respect of a claim arising out of the business of the collection agency against the collection agency in respect of whose conduct the bond is conditioned or against any partner, official, employee or collector of the collection agency and that judgment has not been satisfied, or

(c) under the Bankruptcy Act, chapter B-3 of the Revised Statutes of Canada, 1970, an assignment has been made by or in respect of or a receiving order has been made against the collection agency in respect of whose conduct the bond is conditioned,

and such conviction, judgment, assignment or receiving order has become final by reason of lapse of time or of having been confirmed by the highest court to which any appeal may be taken.

9(3)Subject to subsection (5), the Commission, on the order of the Tribunal, shall pay over any money recovered under a bond forfeited under this section

(a) in trust for those persons who have employed or engaged the collection agency named in the bond for the purpose of the collection of money and who have become judgment creditors of such collection agency in respect of claims arising out of the collection of money, to the Registrar of the Court of King’s Bench or to any clerk of the Court of King’s Bench that the Registrar specifies, or

(b) to any trustee, custodian, interim receiver, receiver or liquidator of those persons who have employed or engaged the collection agency named in the bond for the purpose of the collection of money and who have become judgment creditors of such collection agency in respect of claims arising out of the collection of money,

and such payment over shall be in accordance with any terms and conditions specified by the Tribunal.

9(4)When a bond has been forfeited under subsection (2) and the Tribunal has not, within two years after a conviction, judgment, assignment or order has become final or within two years after the collection agency in respect of whom the bond was furnished ceases to carry on business as a collection agency, received notice in writing of a claim against the proceeds of the bond or of any portion of it that remains in the possession of the Commission, the Commission, on order of the Tribunal and subject to subsection (5), shall pay the proceeds or the portion to any person who on forfeiture of the bond made any payments under it.

9(5)When money has been recovered by the Commission under a bond forfeited under subsection (2), the Commission may deduct from that money and retain

(a) the amount of the costs incurred by it in connection with the recovery and distribution of the money, including the costs of any investigation of a claim made upon the money, and

(b) where any payment is to be made under subsection (4), the amount of any expenses that have been incurred in connection with any investigation or otherwise relating to the collection agency in respect of whom the bond forfeited was furnished.

85-162; 2009-103; 2013, c.31, s.4; 2016, c.36, s.2; 2023, c.17, s.33

10The Director may require a new or an additional bond of the kind required under section 9 to be delivered within a specified time.

2013, c.31, s.4

11(1)A collection agency or a branch office of a collection agency shall, without notice or demand, account for all money collected by it within thirty days after the end of the calendar month in which it is collected and pay it, less the proper charges, to the person entitled thereto but, where the money collected is less than five dollars, payment shall be made within sixty days after the end of the calendar month in which it is collected.

11(2)A collection agency or a branch office of a collection agency shall, upon demand made by a person entitled to an accounting or by the Director, account for all money received on behalf of such person and pay the money, less the proper fees of such collection agency or branch office of a collection agency, to such person.

11(3)Where a collection agency or a branch office of a collection agency is unable to locate the person entitled to money collected by it within six months, it shall cause the money to be paid to the Commission who shall pay the money to the person entitled thereto upon satisfactory proof being furnished by the person that he is the person entitled to receive it.

2013, c.31, s.4

12(1)The holder of a licence to carry on the business of a collection agency or the holder of a licence to operate a branch office of a collection agency shall maintain a trust account in a chartered bank, credit union or trust company and deposit all money received on behalf of a client in the trust account.

12(2)No money may be drawn from a trust account except

(a) money paid to or on behalf of a client from funds which have been deposited in a trust account to the client’s credit,

(b) money required for payment to the collection agency or the branch office of a collection agency of charges pursuant to an agreement to collect debts or disbursements made on behalf of a client from money belonging to the client, or

(c) money paid in to the trust account by mistake.

2016, c.36, s.2

13On the issuance of a licence to carry on the business of a collection agency or a licence to operate a branch office of a collection agency, the holder of the licence shall without delay provide written notice to the Director of the location within the Province at which the holder proposes to keep records and books of account and shall, at all times during the term of the licence, keep the records and accounts at that place or at some other place in the Province, of which written notice has first been provided to the Director.

2009-103; 2013, c.31, s.4; 2016, c.36, s.2

14(1)Subject to subsection (3), no collection agency, branch office of a collection agency or collector shall

(a) communicate or attempt to communicate with a debtor, any member of the debtor’s family or household, any relative, neighbour, friend or acquaintance of the debtor, or the debtor’s employer or guarantor, by any means, in such a manner or with such frequency as to constitute harassment, including, but not limited to,

(i) using threatening, profane, intimidating or coercive language,

(ii) using undue, excessive or unreasonable pressure, or

(iii) making public or threatening to make public a debtor’s failure to pay a debt,

(b) subject to paragraphs (c) and (d), communicate or attempt to communicate with any person other than the debtor for any purpose in relation to the debt or debtor,

(c) communicate or attempt to communicate with the debtor or any other person at the place of employment of the debtor for any purpose in relation to the debt or debtor, except with the debtor’s approval,

(d) except on the request of the person being contacted, make a telephone call to, or a personal call on, a debtor, any member of the debtor’s family or household, any relative, neighbour, friend or acquaintance of the debtor, or the debtor’s employer or guarantor,

(i) on a Sunday, other than between 1 p.m. and 5 p.m. local time for the person being contacted,

(ii) on a holiday other than a Sunday, or

(iii) on any other day, other than between the hours of 7 a.m. and 9 p.m. local time for the person being contacted,

(e) communicate or attempt to communicate with a debtor or any other person for any purpose in relation to the debt or debtor by a means that enables the charges or costs of the communication to be payable by the debtor or other person,

(f) directly or indirectly threaten or state an intention to commence any legal proceeding

(i) for which the collection agency, branch office of a collection agency or collector does not have the written authority of the creditor, or

(ii) for which there is no lawful authority,

(g) give, directly or indirectly, any false or misleading information in respect of a debt or the collection of a debt,

(h) misrepresent the purpose of a communication with any person, the identity of the collection agency, branch office of a collection agency or collector or the identity of the creditor,

(i) use, without lawful authority, any summons, notice, demand or other document that suggests or implies a connection with any court within or outside Canada,

(j) attempt to collect payment of a debt before having provided, or having made all reasonable attempts to provide, a written notice containing the following information to the debtor in a manner that ensures the privacy of the notice:

(i) the name of the creditor;

(ii) the balance owing on the account;

(iii) in the case of a collection agency or branch office of a collection agency, the name of the collection agency as shown on its licence;

(iv) in the case of a collector,

(A) the collector’s name, as shown on his or her licence, and

(B) the name of the collection agency for which the collector is attempting to collect the debt, as the collection agency’s name is shown on its licence; and

(v) the authority of the collection agency, branch office of a collection agency or collector in respect of the collection of the debt,

(k) communicate or attempt to communicate with a debtor, by any means, with respect to the collection of a debt, without indicating

(i) the name of the creditor,

(ii) the balance owing on the account,

(iii) in the case of a collection agency or branch office of a collection agency, the name of the collection agency as shown on its licence,

(iv) in the case of a collector,

(A) the collector’s name, as shown on his or her licence, and

(B) the name of the collection agency for which the collector is attempting to collect the debt, as the collection agency’s name is shown on its licence, and

(v) the authority of the collection agency, branch office of a collection agency or collector in respect of the collection of the debt,

(l) continue to communicate with a debtor,

(i) other than in writing, if the debtor has provided written notice to the collection agency, branch office of a collection agency or collector to communicate with the debtor in writing only and has provided the collection agency, branch office or collector with an address at which the debtor may be contacted,

(ii) other than through the debtor’s legal advisor, if the debtor has provided written notice to the collection agency, branch office of a collection agency or collector to communicate only with the debtor’s legal advisor and has provided the collection agency, branch office or collector with an address for the legal advisor, or

(iii) if the debtor has provided notice to the creditor and the collection agency, branch office of a collection agency or collector by registered mail that the debt is in dispute and that the debtor would like the creditor to take the matter to court,

(m) collect or attempt to collect money from a person who is not liable for the debt, or

(n) request that a debtor waive any rights, benefits or protection provided under this Regulation.

14(2)No collection agency or branch office of a collection agency shall

(a) commence or continue a legal proceeding for the recovery of a debt in the name of the collection agency unless the debt has been assigned to the collection agency in good faith by written instrument for valuable consideration and written notice of the assignment has been provided to the debtor,

(b) commence a legal proceeding for the recovery of a debt in the name of the collection agency if the debt has been assigned to the collection agency, or recommend to a creditor that a legal proceeding be commenced, before having provided the debtor with written notice that the collection agency or branch office of a collection agency intends to commence the proceeding or recommend that the proceeding be commenced, or

(c) notwithstanding any agreement to the contrary between a debtor and a creditor, collect or attempt to collect from the debtor, on behalf of the creditor, any amount of money that exceeds the amount owing by the debtor, including, but not limited to, any charges made or incurred by the collection agency or branch office of a collection agency and any charges incurred by the creditor for the services of the collection agency or branch office.

14(3)A collection agency, branch office of a collection agency or collector shall not make a telephone call to, or a personal call on, the debtor until at least 5 days after the written notice referred to in paragraph (1)(j)

(a) has been mailed to the debtor, or

(b) has been provided to the debtor, if it is provided otherwise than by mail.

14(4)A collection agency, a branch of a collection agency or a collector who includes a demand for payment in the written notice referred to in paragraph (1)(j) does not violate that paragraph.

2009-103

15Repealed: 2016, c.36, s.2

2016, c.36, s.2

16Repealed: 2009-103

2009-103

17Regulation 27, Statutory Orders and Regulations, 1963, under the Collection Agencies Act is repealed.

N.B. This Regulation is consolidated to June 16, 2023.

84-256 - General

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