Purpose and scope of the Act
The Collection and Debt Settlement Services Act (CDSSA) regulates two related industries in Ontario: collection agencies that collect debts on behalf of others, and businesses that provide debt settlement services to consumers. Its purpose is to ensure that collectors are licensed and accountable, that consumers receive adequate notice before being contacted about a debt, that collection conduct stays within defined limits, and that any fees charged for debt settlement services are transparent and capped. The Act is administered by Ontario's Ministry of Public and Business Service Delivery, and detailed operational requirements — including contact hours and notice periods — are set out in regulations made under the Act.
Registration and licensing
Under the CDSSA, a business may not act as a collection agency in Ontario, and an individual may not act as a collector, without being registered with the province. Registration requires meeting standards of financial responsibility and good character, and registrants are subject to ongoing oversight, including the ability of the registrar to suspend or revoke a licence for non-compliance. Consumers can verify whether an agency contacting them is licensed through the Ministry's public registry before providing any payment information.
The required first written notice
Before a collection agency may telephone a consumer about a debt, the Act's regulations generally require that the agency first send a written notice identifying the original creditor and the amount claimed to be owing. This first-notice requirement exists so that a consumer is not confronted by an unexpected phone call with no way to independently verify who is calling or why. A related rule — often referred to informally as the six-day rule — requires the agency to allow a set number of days to pass after sending that notice before initiating telephone contact, giving the consumer time to receive and review the notice first.
Ask for it in writing
If you receive a collection call and have not first received written notice identifying the creditor and the amount claimed, you are entitled to ask the caller to confirm their registration and to send you that notice before discussing the account further.
Permitted contact hours and frequency
Regulations under the CDSSA restrict the days and times during which a collector may contact a consumer by telephone, and limit how often contact may be repeated once it has been established.
| Day | Permitted calling hours |
|---|---|
| Monday – Saturday | 7:00 a.m. – 9:00 p.m. |
| Sunday | 1:00 p.m. – 5:00 p.m. only |
| Statutory holidays | No contact permitted |
Once contact with a consumer has been made, the regulations further limit a collector to no more than three contact attempts within a seven-day period. This limit is intended to prevent repeated same-day or daily calling that amounts to pressure rather than legitimate account communication.
Contacting employers, family and neighbours
A collector is not permitted to contact a consumer's employer, family members or neighbours to discuss a debt or to pressure repayment. Contact with a third party is permitted only for the narrow purpose of obtaining the consumer's address or telephone number, or confirming their place of employment, when that information is not already known — and even then, the collector is not permitted to disclose the existence of the debt to that third party.
Harassment, misrepresentation and threats
The Act and its regulations prohibit collectors from using harassing, threatening or coercive tactics, including threats of violence, excessive frequency of contact designed to intimidate, or use of profane or abusive language. Misrepresentation is also prohibited: a collector may not falsely claim to be a lawyer, a court official, or a representative of a government agency, may not misstate the amount owed or the legal consequences of non-payment, and may not threaten legal action that the creditor does not genuinely intend to pursue.
Trust accounts and record-keeping
Money collected on behalf of a creditor must be handled through a trust account and remitted according to the timelines set out in the Act and regulations, rather than commingled with the agency's general operating funds. Registered agencies are also required to keep accurate books and records of accounts handled, payments received and correspondence sent, which the registrar can review as part of its oversight function and which support a consumer's ability to request a full accounting of their file.
Debt settlement services and fee rules
The CDSSA also regulates businesses that offer to negotiate or settle debts on a consumer's behalf for a fee. These debt settlement providers must be registered, must disclose their fees and the nature of the service clearly before a consumer signs an agreement, and are subject to restrictions on when and how fees may be charged — generally limiting the ability to collect substantial fees before any settlement has actually been achieved on the consumer's behalf. Consumers considering a debt settlement service should confirm registration status and get the full fee structure in writing before paying anything.
Complaints and enforcement
A consumer who believes a collection agency, collector, or debt settlement provider has breached the CDSSA can file a complaint with Ontario's Ministry of Public and Business Service Delivery, which administers the Act and can investigate, impose licence conditions, suspend or revoke registration, and refer serious matters for prosecution. Keeping a written log of calls — dates, times, the name of the collector, and what was said — significantly strengthens a complaint. See our general FAQ for more on the complaint process, or contact us directly if your concern relates to an FDR account.
General information, not legal advice
This page is a plain-language summary of the general effect of the Collection and Debt Settlement Services Act, R.S.O. 1990, c. C.14, and its regulations, prepared for informational purposes. It is not legal advice and specific requirements, including exact notice periods and calling-hour rules, are set out in the regulations in force at any given time. The official consolidated text on Ontario's e-Laws website prevails over this summary in every case.
The standards FDR Ltd. and FDR Asset Group maintain
Beyond the statutory minimum, FDR Ltd. and FDR Asset Group operate an internal compliance program built around the CDSSA's requirements:
- Call recording and audit: collector calls are recorded and subject to periodic quality and compliance review against the Act's conduct standards.
- Written verification on request: any consumer who disputes an amount or asks for verification of a debt receives a written accounting rather than a verbal assurance.
- Documented arrangements: every payment arrangement is confirmed in writing, with the agreed amount, schedule and account reference, so both sides have a consistent record.
- Escalation to a compliance team: any concern about contact frequency, calling hours, or collector conduct is escalated to a dedicated compliance function separate from day-to-day collections staff for independent review.