Canadian law imposes strict limits on how debts may be collected, recognizing that the power imbalance between creditors and debtors creates opportunities for abuse. While creditors have legitimate rights to pursue amounts owed to them, these rights exist within a framework designed to protect individuals and businesses from conduct that crosses the line into harassment, intimidation, deception, or unfair treatment. For small and medium-sized business owners, sole proprietors, and non-profit operators, understanding these prohibitions matters from two perspectives: knowing what collection practices you cannot use when pursuing your own receivables, and recognizing when collectors pursuing you have violated the law. The prohibited conduct rules exist because the collection process inherently involves pressure, and lawmakers across Canada have determined that certain forms of pressure cause harm disproportionate to any legitimate collection purpose.
The foundation for regulating collection conduct rests primarily in provincial consumer protection legislation, with each jurisdiction establishing its own framework for defining unacceptable behaviour. In British Columbia, the Business Practices and Consumer Protection Act governs collection practices. Alberta operates under the Collection and Debt Repayment Practices Act. Saskatchewan addresses these matters through the Collection Agents Act and associated regulations. Ontario regulates collectors through the Collection and Debt Settlement Services Act, which replaced earlier legislation and came into force in stages through recent years. Quebec approaches debt collection through the Civil Code of Quebec and the Consumer Protection Act, with its civil law tradition creating some distinct principles around contractual obligations and good faith. Each province defines prohibited conduct somewhat differently, though substantial overlap exists across jurisdictions. Federal legislation, including the Competition Act, may apply where deceptive practices rise to the level of false or misleading representations, and the Criminal Code of Canada contains provisions addressing extortion, intimidation, and harassment that can apply to egregious collection conduct regardless of provincial law.