Consumers

Debt Collection Agencies

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Collection agencies are businesses hired by others to collect unpaid money. Employees of collection agencies and other “collection agents” must follow specific rules.

Important! The rules explained in this article do not apply to these businesses or people:

  • a bank or caisse populaire
  • collection of money from a merchant resulting from the operation of the merchant’s business
  • a director, partner or employee who, while doing work duties, tries to collect money owed to his company, partnership or employer
  • people in their official capacity as the Minister of Revenue, a lawyer, notary, claims adjuster, insurance representative, bailiff, sheriff, trustee in bankruptcy, liquidator, sequestrator, tutor, public curator, trustee or trust company

Collection agencies must respect two sets of rules:

Permits for Collection Agents

Collection agencies must have a permit to legally collect a debt in Quebec. To get a permit, an agency must have a place of business in Quebec and its business name must include the words “collection agency” or “collection agent”.

If a collection agency contacts you, you have the right to ask for its collection agent permit number issued by the Office de la protection du consommateur (consumer protection office). If you wonder whether the number is valid, you can check it with the regional office of the Office or online.

Legal Ways of Communicating With People Who Owe Money

  • A collection agency can contact a person who owes money from Monday to Saturday between 8 a.m. and 8 p.m., but not on holidays.
  • The first contact must be in writing, not by telephone.
  • The agent who calls must identify himself.
  • The person who owes money can ask that the collection agent only communicate in writing. This request must be made in writing to the collection agency and it’s valid for three months. (It can be renewed.)

Report on Payments and Amounts Still Owed

If a collection agent contacts you, you can make a request in writing at any time asking the collection agency to give a report on payments you’ve made so far and the amounts still owed. The collection agency has 10 days to answer you.

It must also give you this information:

  • the date on which report is made
  • the initial amount owed
  • the name of the person or business owed the money
  • the agency’s permit number

You cannot be charged a fee for this information.

Proof of Payment

It might be important to prove that the money has been repaid. For example, you might want your credit report corrected.

  • If you pay cash: the collection agency has 10 days from receiving payment to give you a receipt.
  • If you do not pay cash: the collection agency has 10 days from receiving your written request for a receipt to give you one.

Outside Links

Recouvrement de dettes par une agence – Office de la protection du consommateur (in French only)