Do you have to pay collection agencies?

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You’re legally obligated to pay your debts, but whether you must pay depends on the debt’s age. In Ontario, BC, or Alberta, if it’s been over two years since your last payment or acknowledgment, collectors can’t sue you, although they’ll likely still hassle you. Remember, the clock on the Statute of Limitations may stop them from taking you to court, but it’s always best to be aware of your financial situation. Reach out via phone, text, or live chat if you have any questions.

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Collection Agencies Question

Do you have to pay collection agencies? Do I legally have to pay collection agencies if they contact me about old debts?

From: Anonymous Question
Location: Clarington, Ontario (ON)
Category: debt settlement

Collection Agencies Answer

You’re still on the hook to pay your debts legally, but whether you actually have to pay depends on how old the debt is. Let’s say you’re in Ontario, British Columbia, or Alberta; if two years have passed since you last paid or acknowledged the debt, the debt collectors can’t take you to court. So, even if the clock has run out on the Statute of Limitations, you technically still owe the money, but they can’t drag you to court or grab your stuff. Keep in mind, though, debt collectors might still try to ring you up asking for payment.

From: Insider Adam

Office of the Superintendent of Bankruptcy (OSB) Answer

Yes, you are legally obligated to pay collection agencies if they are contacting you about old debts, provided that the debt is valid and within the statute of limitations. The relevant law governing this is the Bankruptcy and Insolvency Act (RSC 1985, c. B-3), which outlines the obligations of debtors to pay creditors unless discharged through insolvency processes. It is also important to refer to the applicable provincial debt collection regulations that detail the rights and responsibilities of both creditors and debtors. If you wish to dispute the debt or question its validity, you can seek additional guidance under the relevant legislative provisions.

From: OSB Helper

Related Questions to Paying Collection Agents

Here are the top 5 most frequently asked questions related to dealing with collection agencies in Canada, formatted in markdown:

1. Do I have to pay a collection agency?

You must pay the debt you owe, but you should only pay the amount verified by the collection agency and ensure you have a receipt for your payments[3].

2. What can a collection agency do to collect a debt?

A collection agency can contact you at home, work, or through your contacts to discuss the debt, but they must follow specific rules and regulations, such as contacting you within certain hours and not harassing you[1][3].

3. Can a collection agency charge extra fees?

Collection agencies cannot charge you any fees for collecting the debt; they can only collect the amount you owe to the original creditor[3].

4. How can I stop a collection agency from contacting me?

You can request in writing that the collection agency only contact you in writing or through a lawyer, and you must provide identifying information and proof of sending the request[3].

5. What are my rights when dealing with a collection agency?

You have the right to request an account of the debt, to be contacted only within specified hours, and to be treated without threats, intimidation, or abusive language[1][3].

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

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