Credit and Debt Rights
Written in plain language for general understanding. This is educational content, not legal advice. Based on Canadian federal statutes and official sources.
What is this right?
Credit and debt rules are primarily provincial, but federal laws like PIPEDA and the Bank Act also apply. You have the right to a free credit report from both Equifax and TransUnion. If you dispute an error, the bureau must investigate within 30 days.
Debt collectors face strict limits. In Ontario, for example, collectors cannot call before 7 a.m. or after 9 p.m. and can make a maximum of 3 contacts per 7 days. The limitation period for debt collection is 2 years in most provinces and up to 6 years in some.
You cannot be jailed for owing money (unless there is fraud involved). Ontario is adding statutory credit freezes starting July 2026.
When does it apply?
- Anyone who uses credit, has a credit report, or is contacted by a debt collector.
What should you do?
- Check your credit report at least once a year — it's free from both Equifax and TransUnion.
- Dispute errors in writing and keep copies of everything you send.
- Know your province's limitation period for debt collection.
- Request validation of the debt from any collector who contacts you.
- File a complaint with your provincial consumer protection agency if a collector breaks the rules.
What should you NOT do?
- Don't ignore debt collection — it won't make the debt disappear, and it can get worse.
- Don't acknowledge old debt without understanding the limitation period — in some provinces, this can restart the clock.
- Don't give personal or financial information to unverified callers claiming to be collectors.
- Don't assume all debt collection practices are legal — many collectors bend or break the rules.
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