It can’t happen soon enough for Canadian debtors.

For a number of years our Federal, Provincial and Territorial Ministers, responsible for Consumer Affairs, have been working towards creating a consistent approach for debt collection standards in Canada. Now, it appears that all their hard work will soon payoff for Canadians.

By providing stronger consumer protection laws for debtors that find themselves with financial problems, our government is making sure that debtors will have more protection from unreasonable creditors and debt collectors.

It is my experience, as a credit counsellor, that most people want to repay their debts; sometimes they just need a little help to get that done.

At Solutions we can help!

Collection practices

“In May of 2001, our Ministers ratified a harmonization initiative that will enable all provinces and territories to implement a common list of prohibited collection practices”.

“This consistent approach to the collection practices of companies, that are now often doing business in multiple jurisdictions, will ensure clarity for Canadian debtors, the industry and our regulators”


Not yet law 

The practices discussed include such issues as excessive pressure, disclosure and privacy. At this time the following are just guidelines, it is expected these changes will take place soon. I will keep you informed.

  • Harassment
  • Who may be contacted
  • Location where debtor may be contacted
  • Time of Calls
  • Cost of communication
  • Threatening action
  • False and misleading information
  • Disclosure
  • Collecting more money than is owed
  • No waiving of rights
  • Money owing
  • How to contact
  • Misrepresentation

Take the time to view the proposed practices at - Harmonized List of Prohibited Collection Practices.

Debt Collectors

Over the years I have had some collectors tell me they are not governed by the Debt Collection Act because they are first party collectors – (first party collectors are directly employed by the company that you owe the money to). Nothing could be further from the truth – the Debt Collection Act specifies a person may not harass debtors. Now that Act will go on to provide some much need clarification for those employed in the industry as well as for debtors that owe money and are having difficulty repaying as agreed. The Debt Collection Act influences the actions of all debt collectors. Remember as a person you are entitled to be treated with respect at all times, no matter what your financial situation is.

Next Week: How to complain if you are being harassed by a debt collector.