How long can collection agency try to collect in Canada?

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In Canada, collection agencies can attempt to collect debts indefinitely, but can’t sue once the statute of limitations is up. This period varies, from as short as 2 years in British Columbia to up to 10 years in Alberta. After this, creditors can’t legally enforce payments. If you’re confused or need more details, reach out via phone, text, or live chat.

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Collection Agency Question

How long can collection agency try to collect in Canada? Is there a time limit on how long a collection agency can try to get money from me in Canada?

From: Anonymous Question
Location: Windsor, Ontario (ON)
Category: debt management plan

Collection Agency Answer

In Canada, collection agencies can continue trying to collect a debt forever because there isn’t a limit on their efforts to reach out. The trick here is, while they can keep calling, they can’t take legal action to collect the money once the time limit for a lawsuit is up. This time frame depends on where you live—it can be as short as 2 years or stretch up to 10. Take British Columbia, for example; there, it’s just 2 years. In Alberta, though, it could be anywhere from 2 to 10 years. If the creditor doesn’t start a legal process within this time, they lose the chance to command payment through the courts. For information on how debt collection works in Canada, check out our article on debt collectors.

From: Insider Adam

Office of the Superintendent of Bankruptcy (OSB) Answer

In Canada, the time limit for a collection agency to attempt to collect a debt is generally governed by the statute of limitations, which varies by province. Most provinces have a limitation period of two to six years, after which a creditor can no longer take legal action to collect the debt. For example, under the Limitations Act in Ontario, the limitation period is two years from the date a debt was last acknowledged or payment was made.

It’s important to note that these time limits do not stop collection efforts entirely; they just prevent the creditor from obtaining a court judgment to enforce the collection through legal means. Therefore, while a collection agency can continue to pursue you for the debt, they cannot take legal action after the limitation period has elapsed. You can refer to the appropriate provincial legislation for specific details regarding the types of debt applicable to your situation.

From: OSB Helper

Related Questions to Collection Agencies Collecting Debt In Canada

Here are the top 5 most frequently asked questions related to the duration for which a collection agency can try to collect a debt, based on common search trends and concerns in Canada:

1. How long can a collection agency collect on a debt?

A collection agency can technically try to collect a debt forever, but they can only take legal action within a specific limitation period, typically 2 years in many provinces[1][3][5].

2. What is the Statute of Limitations for debt collection in Ontario?

The Statute of Limitations for debt collection in Ontario is 2 years from the last payment or acknowledgement of the debt[1][3][5].

3. Can a collection agency pursue a debt after the Statute of Limitations expires?

Yes, a collection agency can still try to collect the debt, but they cannot take legal action after the Statute of Limitations expires[1][3][5].

4. How does making a payment affect the Statute of Limitations for debt collection?

Making a payment or acknowledging the debt restarts the Statute of Limitations period[1][3][5].

5. What happens to the debt after the Statute of Limitations period ends?

You still owe the debt, but creditors or collection agents cannot take legal action against you to collect it[1][3][5].

If you have a question about debt see our debt questions or ask your own debt related question.

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