Sections marked as location-specific are showing the position in Canada (General). Rules change — confirm current deadlines before relying on them.
What can I do about this?
A collection agency is a private business, not a court, and its powers are limited to asking — enforcement only follows a court judgment. Two questions decide most of these situations: can they prove you owe this specific debt, and is it still enforceable given how long it has been. Asking for proof in writing is usually the first step.
- Contact from a collector is not a legal proceeding.
- Age of the debt can matter as much as whether you owe it.
- A small payment or an admission can restart the clock in some places.
Who is actually contacting you
| Who | What it means | Why it matters |
|---|---|---|
| Original creditor | The business you dealt with | They hold the original records |
| Agency acting for them | Paid a fee to collect | Limited authority to settle |
| Debt buyer | Bought the debt outright | Often holds thin paperwork; more room to negotiate |
| Law firm collecting | Still collection, not litigation | Only a filed claim starts a case |
Ask them to prove it, in writing
A short written request shifts the burden and creates a record. Keep it neutral — asking for proof is not the same as denying or admitting the debt.
- The name of the original creditor and the original account number.
- The agreement or contract the debt arises from.
- A statement showing how the balance was calculated, including fees and interest.
- Evidence they own the debt or are authorised to collect it.
- The date of the last payment or activity on the account.
Federally regulated creditorsCanada (General)
Collection conduct is regulated provincially, but where the creditor is a federally regulated bank, the Financial Consumer Agency of Canada also oversees the bank's own conduct and complaint handling.
Age of the debt, and what restarts the clockCanada (General)
Every jurisdiction limits how long a creditor has to sue on a debt. Once that period passes, the debt often still exists but cannot be enforced through the courts. Collectors may still ask you to pay.
Debts that are not yours
- Mistaken identity, common with shared or similar names.
- Mixed-up files after an account transfer between agencies.
- Identity theft or fraudulent account opening.
- An account already settled, disputed or written off.
- A joint account where liability is being misallocated.
Say clearly and in writing that you dispute liability, and ask them to stop contact until they have provided proof. Keep the correspondence.
Negotiating: lump sums, plans and written terms
Where the debt is genuinely yours and enforceable, collectors often have room to settle for less, particularly debt buyers. What protects you is getting the terms in writing before any money moves.
- Confirm the settlement figure and that it fully resolves the account.
- Confirm no residual balance will be sold or pursued.
- Confirm how the account will be reported to credit bureaus.
- Get all of it in writing before paying anything.
Credit reporting, and what paying does and does not fix
Paying usually updates the status of an entry rather than deleting it. Reporting periods run for a fixed number of years from the delinquency date, and paying does not normally restart or erase that history.
If they file a claim
A filed claim is a different situation with a hard deadline. Ignoring it usually results in a default judgment, which is what makes garnishment and seizure possible.
What not to do
- Do not make a token payment on an old debt to buy time.
- Do not confirm the debt in writing before you have seen proof.
- Do not ignore court papers, even if you dispute the debt.
- Do not give bank details or authorise ongoing payments on a first call.
Gather these
- Every letter, email and text you have received
- A log of calls: date, time, who called, what was said
- Any original agreement or statements you still hold
- Records of payments you made on the account
- Your credit report showing how the account is reported
What tends to matter
- The date of the last payment or acknowledgement
- Whether the collector can produce the original agreement
- Proof they own or are authorised to collect the debt
- A breakdown showing how fees and interest were added
- Your written dispute and their response, or lack of one
Want both lists in one printable page?
Common mistakes
- Paying a small amount on an old debt and restarting the limitation clock
- Negotiating verbally with nothing confirmed in writing
- Assuming a collector's letter is a court proceeding
- Ignoring genuine court papers because earlier letters were ignored safely
- Giving continuous payment authority over the phone
- Disputing on the phone only, leaving no record
Frequently asked
Can they call my employer or family?
Contacting third parties about your debt is restricted in most jurisdictions, usually limited to confirming contact details. Repeated discussion of the debt with others is generally prohibited.
Do I have to talk to them?
No. You can normally require that all contact be in writing, which also gives you a record of what was said.
Can an old debt still be collected?
They can ask. Whether they can sue depends on the limitation period, which varies by jurisdiction and runs from a specific trigger date such as the last payment.
Does a small payment restart the clock?
In many jurisdictions, yes — a payment or written acknowledgement can restart the limitation period on an otherwise unenforceable debt.
Will this stay on my credit file?
Usually for a fixed period from the original delinquency. Paying typically updates the status rather than removing the entry.
Can they garnish my wages without going to court?
For ordinary consumer debts, enforcement generally requires a judgment first. Some government debts such as taxes or support arrears follow different rules.
See where you stand before you agree to anything
Describe what you have received and we will help you understand your position as the responding party.
Assess my situationAssessment topics related to this guide
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Getting legal help
Worried about the cost of a lawyer?
Free and lower-cost help exists in most places — legal aid, community clinics, court self-help services and referral schemes. What is open to you depends on where you are and what kind of problem you have.
See where to get legal helpThis guide is general information, not legal advice, and Concaso is not a law firm. Reading it does not create a lawyer–client relationship. Deadlines and procedures differ by jurisdiction and change over time — confirm anything you intend to rely on.