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A Collection Agency Is After You in Ontario: Your Rights and the 2-Year Limitation Trap

A Collection Agency Is After You in Ontario: Your Rights and the 2-Year Limitation Trap

8th October 2026BY Qasim Nihang

This article is for informational purposes only and does not constitute legal advice. Every legal situation is unique — consult a licensed lawyer before making any legal decisions.

Quick Answer

Quick Answer

If a collection agency is contacting you in Ontario, you have specific rights under the Collection and Debt Settlement Services Act. The agency must send you a written notice before it can start calling, it cannot call at prohibited hours or harass you, and it generally cannot discuss your debt with your employer except to confirm that you work there. Separately, most debts in Ontario carry a basic two-year limitation period under the Limitations Act, 2002 — after which a creditor may be barred from suing you. One warning: making a partial payment or signing a written acknowledgement of an old debt can restart that two-year clock. Whether a specific debt is still enforceable is fact-specific, so it is often wise to get legal advice before responding.

Getting a Collection Call Doesn't Mean You've Lost

A collection call can feel like being cornered. The phone rings during dinner, a stranger seems to know what you owe, and the pressure to just make a payment today can be intense. If that is where you are right now, take a breath. You are not powerless, and the law is not entirely on the collector's side.

Ontario sets firm rules on how and when a collection agency may contact you, and those rules exist to protect ordinary people. On top of that, time itself may be working in your favour. Many older debts reach a point where a creditor may no longer be able to sue over them.

This guide walks through both halves of the picture: what the agency must do, what it cannot do, and the two-year time limit that so many people never hear about until it is too late. Knowing these two things puts you back in control of the conversation.

2 yrsBasic limitation period for most debts (Limitations Act, 2002)
7am–9pmPermitted call hours on weekdays & Saturdays (Sun 1–5pm)
3 / 7 daysMaximum contacts after first contact, without consent
6 daysWait after written notice before calls typically begin

Quick Start: Which Situation Are You In?

Not every collection call carries the same risk. Find the description that fits you, then read the section that matches.

Recent debt
Being called about a debt less than two years old? The agency’s conduct rules matter most — focus on what it must disclose and what it cannot do, and check whether the amount is correct.
Old debt (2+ years)
Being called about an older debt? The limitation period becomes the key issue. Read the two-year section carefully before you say or pay anything, because the wrong move can restart the clock.
Already sued
Served with court papers? Being contacted and being sued are different events. A Statement of Claim has a short, strict deadline — see our overview of suing or being sued in Small Claims Court and get advice quickly.

Most readers fall into one of the first two groups. Either way, the steps below help you respond calmly and protect your position.

What a Collection Agency Must Do Before It Contacts You

A collection agency is a business a creditor hires to recover a debt on its behalf. A creditor is the person or company you originally owed money to. In Ontario, a collection agency cannot simply start calling you out of the blue.

Before making phone contact, the agency must first send you a written notice. That notice typically must identify the creditor, state the amount said to be owed, and name the agency and its authority to collect. The agency must also be registered in Ontario and must provide information about your rights and how to complain if the rules are broken.

There is also a waiting period. After sending that first written notice, a collection agency typically must wait six days before it begins calling you. This gives you a window to review the claim, check your own records, and decide how you want to respond rather than being pressured on the first contact.

If you are being pursued for money and want to understand the process from both sides, our debt recovery and collection page explains how legitimate collection and enforcement actually work in Ontario.

What a Collection Agency Cannot Do in Ontario

In Ontario, a collection agency cannot harass you, cannot call at prohibited hours, and generally cannot discuss your debt with your employer except to confirm your employment. These limits come from the Collection and Debt Settlement Services Act (formerly called the Collection Agencies Act) and its regulations.

The timing rules are specific. Calls are typically permitted only between 7:00 a.m. and 9:00 p.m. on weekdays and Saturdays, and only between 1:00 p.m. and 5:00 p.m. on Sundays. Agencies generally cannot call on statutory holidays. After first contact, they typically cannot contact you more than three times in a seven-day period without your consent.

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In Ontario, a Collection Agency Can and Cannot…
The boundaries of lawful contact under Ontario’s collection rules, so you can recognise a breach.
What it typically CAN do
  • Contact you after sending the required written notice
  • Negotiate a repayment plan with you
  • Contact your employer only to confirm that you work there
  • Report the debt to the credit bureaus
What it generally CANNOT do
  • Call you before sending written notice
  • Call outside permitted hours (typically 7 a.m.–9 p.m.; Sundays 1–5 p.m.)
  • Call on statutory holidays
  • Contact you more than three times in seven days after first contact, without consent
  • Use threatening, profane, or intimidating language
  • Discuss your debt with your employer or others
  • Add fees that are not legally authorized
Source: Collection and Debt Settlement Services Act and O. Reg. 103/06 (Consumer Protection Ontario) — ontario.ca/page/collection-agency-your-rights
Nihang Law Professional Corporation · Law Society of Ontario

An agency also cannot use threatening, profane, or intimidating language, and cannot add fees that are not legally authorized. If you want contact to go only through a lawyer, you can say so in writing. If you believe an agency has broken these rules, you can file a complaint with Consumer Protection Ontario, which oversees registered agencies.

The Two-Year Limitation Trap: How Old Debt Works

In Ontario, there is usually a limited time window in which a creditor can take you to court over a debt. This is called a limitation period. Under the Limitations Act, 2002, the basic limitation period for most debts is two years.

That two-year clock generally starts running from the day the claim is discovered. In plain terms, this is often the date of your last payment or the date you last acknowledged owing the money. Once that period passes, a debt may become statute-barred, which means a creditor may be barred from successfully suing you to collect it.

A crucial point: statute-barred does not mean erased. The debt still legally exists. A collector may still contact you about it, and it may still appear on your credit report for a separate period. What changes is that a lawsuit over it may no longer succeed.

Now the trap: making even a small partial payment, or signing or putting in writing that you owe the debt, can restart the two-year clock from zero.

Many people pay just a little to make the calls stop, not realizing they may have handed the creditor a fresh two years to sue. Before you pay anything on an old debt, it is worth understanding the two-year limitation period for suing in Ontario and getting advice, because whether your specific debt is still enforceable is fact-specific.

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How the Two-Year Clock Can Restart in Ontario
In Ontario, the basic limitation period for most debts is two years. A partial payment or written acknowledgement can reset it.
Day 0
Clock starts
Often your last payment or the date you last acknowledged the debt
During the 2 years
Creditor may sue
A lawsuit can typically be started within this window
~2 years later
Period may expire
The debt may become statute-barred — a lawsuit may no longer succeed
⚠ The trap — the clock can reset to zero
Making even a small partial payment, or acknowledging the debt in writing, can restart the two-year clock from zero — giving a creditor a fresh two years to sue. Whether a specific debt is still enforceable is fact-specific.
Source: Limitations Act, 2002, S.O. 2002, c. 24, Sch. B, ss. 4 and 13 — ontario.ca/laws/statute/02l24
Nihang Law Professional Corporation · Law Society of Ontario

Being Called vs. Being Sued: Know the Difference

Being contacted by a collection agency is not the same as being sued. A phone call is pressure; a lawsuit is a formal court proceeding with real deadlines. Confusing the two can cost you either way — panicking over a call, or ignoring actual court papers.

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Being Contacted vs. Being Sued in Ontario
Two different legal events, with very different stakes and deadlines.
 Collection contactStatement of Claim (lawsuit)
What it isAn attempt to collect a debtA formal court case against you
Who is contacting youA collection agency or collectorThe court, by a served Statement of Claim
Is there a court deadline?No court deadlineYes — a short, strict deadline to respond
If you ignore itThe calls and letters may continueYou may face a default judgment
Time pressureLower — but do not acknowledge or pay blindlyHigh — act quickly and get advice
Source: Suing someone in Small Claims Court (Government of Ontario) — ontario.ca/page/suing-someone-small-claims-court
Nihang Law Professional Corporation · Law Society of Ontario

A lawsuit starts when you are served with a Statement of Claim, the court document that formally begins a case against you. From that point, you typically have a short, strict deadline to respond. Missing it can lead to a default judgment against you. Only after a creditor obtains a court judgment can it pursue enforcement steps such as garnishment — a court-ordered deduction from your wages or bank account. You can read more about wage garnishment and what happens after a judgment to understand that stage.

What to Do When a Collection Agency Contacts You: A Step-by-Step Roadmap

When the calls start, a calm and orderly response protects you far better than a rushed payment. Here is a sensible order of operations.

  1. 1
    Do not admit the debt or make a payment yet.Anything you say or pay can carry legal weight, including potentially restarting the limitation clock. Stay polite but non-committal until you understand the situation.
  2. 2
    Write down the details.Record the caller's name, the agency, the named creditor, the amount claimed, and the date and time of each contact.
  3. 3
    Ask for written validation of the debt.You can request that the agency confirm, in writing, who the creditor is and how the amount was calculated. This is reasonable and often clarifying.
  4. 4
    Check your own records.Compare the claim against your statements. Mistakes, duplicate accounts, and debts you already paid are more common than people expect.
  5. 5
    Weigh the limitation period before paying or acknowledging anything.If the debt may be old, a payment could reset the two-year clock. This is the moment to pause and get advice.
  6. 6
    Communicate in writing.If you dispute the debt, say so in writing. If you want contact routed only through a lawyer, put that in writing too.
  7. 7
    Get legal advice if you are sued.If a Statement of Claim arrives, the deadlines are strict. Our civil litigation team can help you understand your options.

Common Mistakes That Can Cost You

A few predictable missteps cause the most damage. Watching for these keeps a stressful situation from becoming a costly one.

  • ▪Making a good-faith partial payment on an old debt. This can restart the two-year limitation clock and re-expose you to a lawsuit.
  • ▪Acknowledging the debt in writing or by email. A written acknowledgement can have the same clock-restarting effect as a payment.
  • ▪Assuming an old debt has simply vanished. A statute-barred debt still exists and can still be reported and pursued by contact, even if a lawsuit may no longer succeed.
  • ▪Ignoring a Statement of Claim. Unlike a collection call, court papers carry a hard deadline, and missing it can lead to a default judgment.
  • ▪Paying an amount you never verified. Errors and inflated figures happen; always confirm what is actually owed first.
  • ▪Giving in to pressure tactics. Threats, after-hours calls, or contact with your employer beyond confirming employment may breach the rules — and are grounds for a complaint.

Frequently Asked Questions

Can a collection agency sue me in Ontario for a debt that's more than two years old?

It may not be able to successfully sue you. Under the Limitations Act, 2002, the basic limitation period for most debts is two years, after which a debt may become statute-barred. Whether the clock has actually run is fact-specific, so it is wise to confirm before assuming.

If I make a small payment on an old debt, can the agency come after me again?

Possibly, yes. Making a partial payment or acknowledging the debt in writing can restart the two-year limitation clock, giving a creditor a fresh window to sue. Before paying anything on an old debt to buy time, it is often better to get legal advice first.

What time of day can a collection agency legally call me in Ontario?

Calls are typically permitted only between 7:00 a.m. and 9:00 p.m. on weekdays and Saturdays, and between 1:00 p.m. and 5:00 p.m. on Sundays. Agencies generally cannot call on statutory holidays, and after first contact they typically cannot contact you more than three times in a seven-day period without consent.

Can a debt collector call my workplace or tell my boss about my debt?

Generally, a collection agency can contact your employer only to confirm that you work there. It typically cannot discuss your debt with your employer or anyone else without your permission. Contact that goes beyond confirming employment may breach Ontario rules.

How do I get a collection agency to stop calling me?

You can ask, in writing, that the agency communicate only through your lawyer, or dispute the debt in writing. If the agency breaks the contact rules, you can file a complaint with Consumer Protection Ontario. These steps may limit contact, though they do not erase a valid underlying debt.

Does an old debt disappear after two years in Ontario?

No. The debt still legally exists even after two years. What may change is that a creditor could be barred from successfully suing you over it. The debt can still be the subject of contact and may still appear on your credit report for a separate period.

What's the difference between a collection agency calling me and being taken to court?

A collection call is an attempt to collect; a lawsuit is a formal court case started by a Statement of Claim. A call has no court deadline, but a Statement of Claim carries a short, strict deadline to respond, and ignoring it can lead to a default judgment against you.

What should I do first when a collection agency contacts me?

Do not admit the debt or pay anything immediately. Write down the caller, agency, creditor, and amount, then ask for written confirmation of the debt and check it against your own records. If the debt may be old, or if you have been served with court papers, contact us for advice before responding.

Talk to a Debt and Litigation Lawyer in Toronto & Scarborough

A collection agency must follow strict rules, and a quiet two-year clock may limit whether an old debt can be enforced — but a single payment or written acknowledgement can reset it. Because enforceability depends on your specific facts, a short conversation with a lawyer can save you from an expensive mistake. At Nihang Law, our team is led by Qasim Ali, Principal Lawyer at Nihang Law.

Contact Nihang Law
This article is for informational purposes only and does not constitute legal advice. Every legal situation is unique — consult a licensed lawyer before making any legal decisions. Nihang Law Professional Corporation is regulated by the Law Society of Ontario.
Qasim Ali — Principal Lawyer at Nihang Law Professional Corporation

About the author

Qasim Ali

Principal Lawyer · Nihang Law Professional Corporation · Toronto & Scarborough, Ontario · Law Society of Ontario

Qasim Ali is the Principal Lawyer at Nihang Law Professional Corporation, serving clients across Toronto, Scarborough, and the broader Greater Toronto Area. He provides full-service legal representation across immigration, real estate, family law, criminal law, civil litigation, employment law, wills and estates, and business law.

Nihang Law is particularly recognized for its depth in immigration and real estate law — a combination that serves newcomers and growing families navigating both legal systems simultaneously.

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