Collections are one of the most regulated industries in Canada. There are very specific ways to approach customers who owe you money, whether it’s on your own or if you use a debt collection business like ours.
Using some material we collected from websites for the Canadian government and the provinces of Ontario and Alberta, we have gathered together some information for you to know about collection agency rules. This is by no means a comprehensive view, but it gives you a good idea of the types of compliance and regulations the debt industry faces.
Licensing requirements
One of the over-arching rules concerns being registered as a collections business. This takes place when a business such as ours signs agreements, often with individual provinces, and meets certain requirements regarding both bookkeeping as well as consumer protection. This includes data privacy, a continued hot topic in the past few years.
Accounting to the debtor
There are several items that need to be disclosed when contacting debtors. The major ones are these:
- Details of the debt, including what is owed and the previous terms
- Information about the original creditor, as well as about the current agency
- Receipts for all cash transactions and payments as part of settling the debt
Contact rules
Similar to above, the rules of engagement with a debtor are spelled out pretty clearly. They include these:
- Contact at home between 7 am and 10 pm in the debtor’s time zone
- Contacting spouses, relatives or friends, but just to request addresses or phone contact
- Contacting employers to confirm employment and business title
Note that it is legal for a collection agency to place calls to a person’s office – unless the debtor says to not do that. Arrangements are recommended to be made — and kept — for the duration of the collection process.
Service meets empathy meets compliance
Putting the customer first, and doing this while understanding their individual situation, is the hallmark of a great business. Whether it’s a requirement or not, it’s important to always bring fairness to your practices.
At ARO, we can help you navigate all the compliance that’s currently on the books, plus any changes that are about to take place with debt collection. Our legal department is well versed in the trends relating to these types of laws.
We make it our purpose to reconcile debt with an approach that puts people first. Find out more about what we have to offer businesses on our website.
