Debt collectors harassing you? Know your rights across Canada

In short: In Canada, debt collectors are tightly regulated — they cannot threaten you, call at all hours, or tell your boss about your debt — but the exact rules are set province by province. Every province requires collection agencies to be licensed or registered (Saskatchewan through the FCAA, Manitoba through its Consumer Protection Office, Ontario under the CDSSA), and each sets its own calling hours and wage-garnishment limits. Two federal tools — a consumer proposal and bankruptcy — can stop the calls entirely by law. CourtStairs answers questions like these in plain language, with citations to the actual statute for your province.

Few things are as stressful as a phone that keeps ringing with a collector on the line. The good news is that you have real, enforceable rights — and collectors who cross the line can lose their licence. The catch is that consumer protection is provincial, so the answer to "can they do that?" shifts at the border between Ontario and Quebec, or between Alberta and BC. This post maps the three things people ask about most — calling hours, licensing, and garnishment — and explains how a consumer proposal or bankruptcy can shut the calls off for good.

What can debt collectors never do in Canada?

Every provincial collection law bans the same core abuses: threats, harassment, contacting your employer or family to pressure you, and lying about legal consequences. A licensed collector may not:

• Use threats, profanity, harassment, or intimidation, or call so often that the contact itself is harassing.
• Contact your family, friends, neighbours, or employer to discuss or pressure you about the debt — with narrow exceptions to confirm your address or to enforce a court-ordered garnishment.
• Misrepresent the situation — for example, posing as a law firm or government, or falsely threatening legal action or arrest.
• Continue calling you directly after you have told them, in writing, to communicate only in writing or only through your lawyer or trustee.

What are the debt collection rules in each province?

Debt collection is regulated province by province, so calling hours, the licensing body, and wage-garnishment limits all change at the provincial border. The table below sets out the general rules as of 2026. Calling windows, licensing bodies, and garnishment limits are all provincial, so treat this as a map, not the final word — and confirm the current rule against your province's statute or regulator before relying on it.

Notice the pattern: the calling-hours column clusters around a 7-to-9 window with Sunday restrictions, the licensing column is a solid wall — every province requires it — and the garnishment column is where the numbers swing most, from 20% in Ontario to 50% in Alberta.

Do debt collectors have to be licensed in Canada?

Yes — in every province, a third-party collection agency must be licensed or registered before it can legally collect from residents, and this is one of your strongest practical protections. A licensed collector has posted a bond, is on a public registry, and can lose its licence for breaking the rules.

The regulators go by different names. In Saskatchewan, collection agents and individual collectors are licensed by the Financial and Consumer Affairs Authority (FCAA) under The Collection Agents Act; the FCAA publishes licensees on its public "FCAA411" page and warns consumers not to deal with anyone who is not listed. In Manitoba, agencies register with the Consumer Protection Office and must post a bond and keep a trust account in the province. In Ontario, every collection agency must be registered under the Collection and Debt Settlement Services Act. Quebec requires a permit from the Office de la protection du consommateur, and the agency's name must actually include the words "collection agency."

Can a debt collector garnish my wages?

Not on their own — a collector cannot simply reach into your paycheque. To garnish wages, a creditor generally must sue you and win a judgment first, then ask the court to order your employer to redirect part of your pay. How much they can take is provincial and varies a lot: Ontario's Wages Act protects 80% of your wages, BC exempts 70%, and Alberta shields the first $800 of monthly net pay (plus $200 per dependent) and allows up to 50% of the amount above that. Courts can lower the amount if garnishment would cause hardship. Government debts such as taxes and student loans can sometimes be garnished by different, faster routes. Because most consumer debts are pursued in small claims, it's also worth knowing your province's small claims court limits and whether the debt is past the limitation period for suing.

How can I stop debt collection calls for good?

Filing a consumer proposal or bankruptcy through a Licensed Insolvency Trustee legally halts all collection calls, lawsuits, and garnishments the day it is filed. When the debt is genuinely unmanageable, these two federal remedies under the Bankruptcy and Insolvency Act can end collection activity outright. Both must be filed through a Licensed Insolvency Trustee (LIT), and both trigger an automatic stay of proceedings — a legal freeze that stops collection calls, lawsuits, and wage garnishments the day it is filed.

Because both are federal, the stay works the same in every province — a rare instance where the answer is not provincial. Talk to a Licensed Insolvency Trustee to understand which fits your situation before deciding.

1. Confirm the collector is licensedCheck your provincial regulator's public registry (e.g. Saskatchewan's FCAA411). An unlicensed collector should not be operating.
2. Verify the debt and the limitation clockAsk for written proof. Old debts may be past the provincial limitation period, which can bar a lawsuit — but does not erase the debt.
3. Require contact in writingSend a dated letter or email limiting the collector to written communication, and keep a copy.
4. Complain if they break the rulesReport harassment or after-hours calls to your provincial regulator, which can suspend or cancel the licence.
5. Consider a proposal or bankruptcyIf the debt is unmanageable, a Licensed Insolvency Trustee can file a consumer proposal or bankruptcy, triggering an automatic stay that stops all collection.

Why do collection rules vary by province?

The differences are not random. Regulation of collection agencies and civil garnishment falls under provincial jurisdiction, so each legislature has drawn its own line between letting creditors recover what they are owed and protecting people from abuse. That is why the calling hours, the licensing body, and the garnishment percentage all change when you cross a provincial border — while the tools that truly stop collection, the consumer proposal and bankruptcy, are federal and work the same everywhere. The recurring lesson across Canadian law applies here too: the answer is provincial, so confirm the rule for your jurisdiction before you rely on it.

Where CourtStairs fits

CourtStairs answers everyday questions like "can this collector call me at work?" or "how much of my pay can be garnished?" with citations to the primary source for your province — the Collection and Debt Settlement Services Act, the Collection Agents Act, Quebec's Consumer Protection Act, or the federal Bankruptcy and Insolvency Act — so you can read the rule in the statute itself before you act on it.

This post is general information, not legal advice. Collection rules, calling hours, licensing, and garnishment limits vary by province and change over time, so confirm the current rule against the official statute, your provincial regulator, or a licensed professional before relying on it. If you are facing a lawsuit or garnishment, treat it as urgent and get advice quickly.