Debt Collection in Ontario: Your Rights, Collector Limits & How to Make Them Stop

What Debt Collectors Are NOT Allowed to Do

Under the CDSSA, a collector cannot:

• Contact you on a Sunday before 1 pm or after 5 pm, or on a statutory holiday
• Contact you more than 3 times in 7 days without your consent
• Use threatening, profane, intimidating, or coercive language
• Make false or misleading representations (e.g., pretend to be a lawyer, claim consequences that aren't real)
• Contact your employer except to confirm employment or wages, unless your employer has guaranteed the debt
• Contact family members except to locate you
• Add fees or charges beyond what the original contract allows

Permitted Contact Hours

How to Stop Collection Calls

You can send the collection agency a written cease-and-desist letter by registered mail. Once received, they may only contact you to:

• Advise you they are ending collection efforts, or
• Advise you of legal action they intend to take

Send the letter to the collection agency (not the original creditor), keep a copy, and send it via registered mail so you have proof of receipt. After this, if the calls continue, you can file a complaint with the Ministry of Public and Business Service Delivery.

The 2-Year Limitation Period on Old Debts

Under Ontario's Limitations Act, 2002, a creditor has 2 yearsfrom the date you last acknowledged the debt (or made a payment) to start a court action. After 2 years, the debt is statute-barred — meaning they cannot successfully sue you for it.

Important: Making a payment or acknowledging a debt in writing restarts the 2-year clock. Never make a small payment on an old debt without understanding the implications.

A statute-barred debt still exists — the creditor can still ask you to pay and can still report it to credit bureaus (up to 7 years from the date of last activity). But they cannot take you to court.

Credit Bureau Reporting

Negative items (collections, missed payments) remain on your credit report for 6–7 yearsfrom the date of last activity, regardless of the legal limitation period. You can dispute inaccurate information by contacting Equifax or TransUnion directly.

When You Are Sued for a Debt

If a creditor files a claim in Small Claims Court for a debt under $35,000, do not ignore it. Failing to file a Defence within 20 days of being served results in a default judgment against you. A paralegal can review the claim, raise limitation period defences, and represent you at the hearing.