Before you pay an old debt, read this.
Collection agencies in Ontario have to follow strict rules — and a debt too old to sue can be revived if you pay even a dollar. Here's what collectors can and can't do, and how to protect yourself.
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In 30 seconds, here's what's true
- A collection agency must send you a written notice and wait 6 days before calling to collect. These rules apply to third-party agencies — not the original company you owed.
- After you've first spoken, they can't contact you more than 3 times in any 7-day period for one debt. They can't call on statutory holidays, and only within set hours.
- They can't harass or threaten you, add their own fees, or contact your family, friends, or employer about the debt — only to get your address, and your employer only once.
- In Ontario, a creditor generally has only 2 years to sue you. After that the debt is 'statute-barred' — they can still ask for it, but can't win in court if you raise the time limit.
- Making a payment — even a small one — or admitting the debt in writing can RESET that 2-year clock. That's why collectors push for a 'good faith' payment on old debts.
How the process works
Don't pay or admit anything yet
On an old debt, a single payment or a written 'I'll pay you back' can restart the 2-year clock and revive their right to sue. Before you agree to anything, find out how old the debt is.
Check the date of last activity
Get a free copy of your credit report to find your last payment date. If it's been more than 2 years with no payment or written acknowledgment, the debt is likely too old to be sued over.
Make them prove it
Confirm the agency is registered with the Ministry, and ask in writing for a breakdown: the original creditor, the amount, and the date. Don't share personal details until you've verified who they are.
Dispute in writing to stop calls
You can write to the agency saying you dispute the debt and want the matter taken to court. Once you do, they must stop contacting you (unless you agree to more contact). Keep a copy.
Get help and weigh your options
Complain to Consumer Protection Ontario about a rule-breaking collector (keep your call logs). For the debt itself, a community legal clinic or a Licensed Insolvency Trustee can explain settlement, a proposal, or bankruptcy.
What to do next
- Don't make any payment on an old debt before checking its age.
- Get your free credit report to find the last activity date.
- Confirm the collection agency is registered with the Ministry.
- Ask in writing for a breakdown of the debt (creditor, amount, date).
- Keep a log of every call: date, time, and what was said.
- Send a written dispute if you want the calls to stop.
- Complain to Consumer Protection Ontario if they break the rules.
- Start a free PLAIN session to check your rights and plan next steps.
Common myths
| Myth | Reality |
|---|---|
| I have to pay or they'll garnish my wages immediately. | A collection agency needs a court judgment before it can garnish you. They can't just start taking your pay. |
| Making a small payment will help my situation. | On an old debt it can backfire — a payment can reset the 2-year clock and revive their right to sue you. |
| Collectors can call me anytime and tell my family or boss. | No. There are set hours and holiday limits, and they can't discuss your debt with family, friends, or your employer. |
| If the debt is old, I can still be sued for it. | After 2 years a debt is usually statute-barred — they can't win in court if you raise the time limit as a defence. |
| An old debt just disappears on its own. | It doesn't. It still exists and can stay on your credit report for years — it just can't be enforced in court after 2 years. |
| I can ignore a court document about an old debt. | No. If you're sued and ignore it, they can get a default judgment — even on an old debt. Always respond. |
| The original company has to follow the same calling rules. | The strict collection-agency rules apply to third-party agencies, not the original creditor's own staff. |
| There's no way to make the calls stop. | You can dispute the debt in writing and ask that it go to court — then they must stop contacting you. |
Last reviewed June 2026
Written and reviewed by the founder of PLAIN, checked against primary government and legal sources. How we research these guides
Sources
PLAIN gives legal information, not legal advice. It is not a substitute for a lawyer or paralegal — and we'll point you to free ones. Laws change; we review these pages regularly, but always confirm current rules with a licensed professional.
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