Credit and Debt Rights in Ontario
Reviewed by the Commoner Law Editorial Team. Sourced from Canadian federal statutes and official sources. Provincial information reflects each province's own legislation and court rulings. Written in plain language for general understanding — this is educational content, not legal advice. Our editorial standards
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 to Do If a Debt Collector in Canada Is Harassing You
- 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.
How Ontario differs from federal law
Ontario has specific consumer protection laws governing credit, debt, and collection practices that go beyond federal regulation.
- Ontario's Collection and Debt Settlement Services Act, R.S.O. 1990, c. C.14 regulates debt collectors. Collectors cannot: call you before 7 a.m. or after 9 p.m., use threatening or intimidating language, contact you at work if you ask them not to, contact your friends or family (except once to get your contact information), or misrepresent the amount you owe.
- Under Ontario's Consumer Protection Act, 2002, lenders must disclose the total cost of borrowing (including all fees and interest) before you sign. Failure to disclose is an unfair practice.
- Ontario's limitation period for most debts is 2 years under the Limitations Act, 2002. After 2 years without a payment or written acknowledgment, the creditor cannot sue you. However, the debt may still appear on your credit report for up to 6 years.
- Payday loans are regulated under the Payday Loans Act, 2008 — the maximum total cost of a payday loan in Ontario is $15 per $100 borrowed. Lenders must be licensed.
- Ontario residents can access credit counselling through non-profit agencies. If debts are overwhelming, you can file a consumer proposal or bankruptcy through a Licensed Insolvency Trustee under the federal Bankruptcy and Insolvency Act.
Additional Steps in Ontario
If a debt collector is breaking the rules, file a complaint with the Ontario Ministry of Public and Business Service Delivery. You can also file a complaint with the Consumer Protection Ontario hotline at 1-800-889-9768. For credit counselling, contact a non-profit agency accredited by Credit Counselling Canada. If you are considering bankruptcy or a consumer proposal, consult a Licensed Insolvency Trustee.
Relevant Law: Collection and Debt Settlement Services Act, R.S.O. 1990, c. C.14; Consumer Protection Act, 2002, S.O. 2002, c. 30, Sched. A; Limitations Act, 2002, S.O. 2002, c. 24, Sched. B; Payday Loans Act, 2008, S.O. 2008, c. 9
Common Questions
When does credit and debt rights apply?
Anyone who uses credit, has a credit report, or is contacted by a debt collector.
What should I do if a debt collector in Canada is calling me constantly or breaking the rules?
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 mistakes should I avoid with credit and debt rights?
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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