Acts and Regulations

2011, c.126 - Collection and Debt Settlement Services Act

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Document at 1 July 2013
2011, c.126
Collection Agencies Act
Deposited May 13, 2011
Definitions
1The following definitions apply in this Act.
“collection agency” means a person, other than a collector, who carries on the business of collecting debts for other persons in consideration of the payment of a commission on the amount collected or otherwise, whether the head office of the collection agency is within or without the Province. (agence de recouvrement)
“collector” means a person employed, appointed or authorized by a collection agency to solicit business or collect debts for the agency. (agent de recouvrement)
“Commission” means the Financial and Consumer Services Commission continued under the Financial and Consumer Services Commission Act.(Commission)
“Director” means the Director of Consumer Affairs appointed under the Financial and Consumer Services Commission Act and includes any person designated by the Commission or the Director to act on the Director’s behalf. (directeur)
“Minister” Repealed: 2013, c.31, s.3
“prescribed” means prescribed by the regulations or, if the context requires, by the rules made by the Commission under the Financial and Consumer Services Commission Act.(prescrit)
“Tribunal” means the Tribunal established under the Financial and Consumer Services Commission Act. (Tribunal)
R.S.1973, c.C-8, s.1; 1975, c.14, s.1; 1978, c.D-11.2, s.6; 2006, c.16, s.36; 2012, c.39, s.44; 2013, c.31, s.3
Application
2(1)Subject to subsection (2), this Act does not apply to
(a) a member of the Bar of the Province of New Brunswick,
(b) an insurance agent licensed under the Insurance Act in respect of the collection of insurance premiums, or
(c) a chartered bank organized under the laws of Canada, or its officials or servants, in respect of any business of the bank.
2(2)This Act applies to a member of the Bar of any province who carries on a collection agency in a name other than his or her own.
R.S.1973, c.C-8, s.8
Licence
3(1)No person shall carry on the business of a collection agency, operate a branch office of a collection agency, or act as a collector until the person has been licensed as provided by this Act and the regulations and has caused notice of the licence to be published in The Royal Gazette.
3(2)A person who violates or fails to comply with subsection (1) commits an offence punishable under Part 2 of the Provincial Offences Procedure Act as a category E offence.
R.S.1973, c.C-8, s.2; 1975, c.14, s.2; 2008, c.11, s.7
Application for licence
4(1)An application for a licence shall
(a) be made in writing,
(b) be accompanied by the prescribed fee, and
(c) furnish the information required by or in accordance with the regulations.
4(2)The Director may
(a) issue a licence to the applicant if the Director is satisfied that the applicant is suitable to be licensed and the proposed licence is not for any reason objectionable,
(b) impose terms and conditions on a licence, or
(c) refuse to issue a licence to the applicant if the Director is of the opinion, after due investigation made by the Director or by a person the Director designates, that the applicant should not be issued a licence.
R.S.1973, c.C-8, s.3; 1975, c.14, s.3; 1985, c.7, s.2; 2013, c.31, s.3
Offence regarding lack of licence
5A collection agency or collector that carries on business in New Brunswick, either by correspondence, by serving written demands or by making verbal demands on alleged debtors, without the licence required by this Act, commits an offence punishable under Part 2 of the Provincial Offences Procedure Act as a category E offence.
R.S.1973, c.C-8, s.4; 1975, c.14, s.4; 2008, c.11, s.7
Offence regarding use of unlicensed agency
6A person who employs a collection agency that does not have the licence required by this Act, or causes or procures letters to be sent or oral demands to be made on debtors or alleged debtors by a collection agency not having that licence, commits an offence punishable under Part 2 of the Provincial Offences Procedure Act as a category E offence.
R.S.1973, c.C-8, s.5; 2008, c.11, s.7
Offence regarding violation of regulations
7A collection agency or collector who violates or fails to comply with a provision of the regulations commits an offence punishable under Part 2 of the Provincial Offences Procedure Act as a category B offence.
1984, c.19, s.1; 2008, c.11, s.7
Examination of books and records
8(1)A collection agency or a person operating a branch office of a collection agency shall
(a) during normal business hours, make available for examination by the Director its books and records, and
(b) shall furnish the information the the Director requests.
8(2)If a collection agency or a person operating a branch office of a collection agency fails to make available for examination its books and records as provided for in subsection (1) or to furnish any information requested under subsection (1), the Director may cancel without delay the licence issued in relation to it.
1985, c.7, s.3; 2013, c.31, s.3
Suspension or cancellation of licence
9(1)The Director may suspend or cancel a licence in accordance with the regulations or when the Director considers it in the public interest to do so.
9(2)No person whose licence has been cancelled is entitled to a new licence for one year after the cancellation.
9(3)A person who is directly affected by a decision of the Director under this section, section 4 or subsection 8(2) may appeal the decision to the Tribunal.
9(4)When a licence has been suspended or cancelled under this Act, the holder of the licence shall return the licence to the Director without delay.
9(5)A person who violates or fails to comply with subsection (4) commits an offence punishable under Part 2 of the Provincial Offences Procedure Act as a category C offence.
R.S.1973, c.C-8, s.6; 1975, c.14, s.5; 1979, c.41, s.17; 1985, c.7, s.4; 2008, c.11, s.7; 2013, c.31, s.3
Administration
10The Commission is responsible for the administration of this Act.
1985, c.7, s.1; 2013, c.31, s.3
Regulations
11The Lieutenant-Governor in Council may make regulations
(a) respecting the requirements of an application for a licence under this Act and the form, terms and conditions of a licence;
(b) fixing the date of a licence and the period for which it may be issued and the fee to be charged for it;
(c) respecting the suspension and cancellation of a licence;
(d) requiring the giving of security by a collection agency, respecting the nature, form, amount and conditions of forfeiture of that security, and regulating the disposition of the proceeds of that security on forfeiture;
(e) authorizing the Commission, when money is paid to the Commission in consequence of the forfeiture of any security required under the regulations, to deduct from the money and retain the amount of the costs incurred by the Commission in connection with the recovery and distribution of the money, including the costs of an investigation of a claim made on the money;
(f) respecting the manner in which collection agencies are to keep their accounts and the manner in which they are to hold, account for and pay over money collected by them;
(g) prescribing the nature and amount of fees and other charges that collection agencies may recover or attempt to recover for their services from their clients or their clients’ debtors;
(h) prohibiting the use of any particular method in the collection of debts by collection agencies or collectors;
(i) respecting returns to be made and information to be provided by collection agencies;
(j) prohibiting the bringing of an action by a collection agency for the recovery of debt in a court of this Province;
(k) respecting forms.
R.S.1973, c.C-8, s.7; 1975, c.14, s.6; 1984, c.19, s.2; 1985, c.7, s.5; 2013, c.31, s.3
N.B. This Act was proclaimed and came into force September 1, 2011.
N.B. This Act is consolidated to July 1, 2013.