GENERAL, O. Reg. 309/14

• Jurisdiction: Ontario

ontario regulation 309/14

made under the

Collection Agencies Act

Made: December 10, 2014
Filed: December 19, 2014
Published on e-Laws: December 22, 2014
Printed in The Ontario Gazette: January 3, 2015

Amending Reg. 74 of R.R.O. 1990

(GENERAL)

1. (1) Subsection 1 (1) of Regulation 74 of the Revised Regulations of Ontario, 1990 is amended by striking out “provided by the Minister” at the end and substituting “approved by the Registrar”.

(2) Subsection 1 (2) of the Regulation is amended by striking out “provided by the Minister” at the end and substituting “approved by the Registrar”.

(3) Subsection 1 (3) of the Regulation is amended by striking out “provided by the Minister” at the end and substituting “approved by the Registrar”.

(4) Subsection 1 (4) of the Regulation is amended by striking out “provided by the Minister” at the end and substituting “approved by the Registrar”.

2. Subsection 2 (8) of the Regulation is revoked and the following substituted:

(8) The bond referred to in subsection (5) shall be in a form approved by the Registrar.

3. Clause 6 (c) of the Regulation is amended by adding “of the collection agency” after “or other official”.

4. (1) Subsection 13 (1) of the Regulation is amended by striking out “provided by the Minister” and substituting “approved by the Registrar”.

(2) Subsection 13 (9) of the Regulation is amended by striking out “provided by the Minister” at the end and substituting “approved by the Registrar”.

(3) Subsection 13 (10) of the Regulation is revoked and the following substituted:

(10) Every person registered as a collection agency shall operate from a permanent place of business in Ontario that is not a dwelling and that shall be open during normal business hours.

5. Section 16 of the Regulation is amended by striking out “provided by the Minister” and substituting “approved by the Registrar”.

6. Subsection 17 (2) of the Regulation is revoked and the following substituted:

(2) Every collection agency or branch thereof shall maintain in respect of all trust funds that come into its hands a separate trust account in any Ontario branch of a bank, a corporation registered under the Loan and Trust Corporations Act or a credit union as defined in the Credit Unions and Caisses Populaires Act, 1994 authorized by law to accept deposits, and such account shall be designated as the “Collection and Debt Settlement Services Act Trust Account” in English and “compte en fiducie prévu par la Loi sur les services de recouvrement et de règlement de dette” in French.

7. Section 19.1 of the Regulation is revoked and the following substituted:

19.1 (1) The restriction in subsection 4 (1) of the Act against a person acting as a collector, unless the person is registered by the Registrar under the Act, does not apply to a person employed by a not-for-profit corporation that is a registered charity as defined in the Income Tax Act (Canada) and that provides credit counselling services.

(2) Section 11 does not apply to a not-for-profit corporation that is a registered charity as defined in the Income Tax Act (Canada) and that provides credit counselling services.

(3) Section 15 does not apply to an officer or director of a not-for-profit corporation that is a registered charity as defined in the Income Tax Act (Canada) and that provides credit counselling services.

8. Subsection 19.1.1 (1) of the Regulation is amended by striking out “clauses 20 (a) and (g)” in the portion before clause (a) and substituting “section 21”.

9. Subsection 22 (2) of the Regulation is revoked and the following substituted:

(2) If a debtor or his or her lawyer or licensed paralegal sends a collection agency, by registered mail, a letter requesting that the collection agency communicate only with the debtor’s lawyer or licensed paralegal, and setting out the lawyer or licensed paralegal’s address and telephone number, the collection agency or a collector shall not thereafter contact or attempt to contact the debtor other than through the debtor’s lawyer or licensed paralegal unless the debtor consents to or requests the contact.

10. The Regulation is amended by adding the following sections:

Debt Settlement Services Agreements

26. (1) For the purposes of subsection 16.3 (1) of the Act, a collection agency or collector shall not communicate or cause to be communicated the following representations relating to a debt settlement services agreement:

1. A claim that the services are provided on a non-profit or charitable basis, if they are not.

2. A claim that the collection agency’s operations or programs are approved by, or a part of, a program run by the government of Ontario, the government of Canada, or the government of any other jurisdiction outside Ontario, if they are not.

3. Any reference to registration under the Act, other than the collection agency’s or collector’s registration number under the Act.

4. Any claim of savings or other results for debtors that is not based on typical results.

5. Any claim that misrepresents or exaggerates the services provided under the agreement or the effects or benefits of those services, including but not limited to,

i. a claim that using the services will or may deter the efforts of a creditor or agent of a creditor to collect a debt, and

ii. a claim that using the services will or may prevent legal action or garnishment of the debtor’s wages.

(2) For the purposes of paragraph 4 of subsection (1), typical results means the average results obtained by the collection agency, over a period of at least six months and no longer than 12 months in the preceding calendar year, in respect of all debts that were the subject of a debt settlement services agreement during that period.

(3) A collection agency shall communicate or cause to be communicated the following representations in the circumstances described:

1. If the collection agency has a website, any place on the website that requests a debtor’s personal information shall clearly and prominently display the collection agency’s registered name, principal business address in Ontario, telephone number, fax number, e-mail address and registration number under the Act, set out as “Ontario Registration # [insert registration number]” in English or “N^o d’inscription en Ontario : [insert registration number]” in French.

2. If an advertisement is made by or on behalf of a collection agency, the advertisement shall clearly and prominently state the collection agency’s registered name and registration number under the Act set out as “Ontario Registration # [insert registration number]” in English or “N^o d’inscription en Ontario : [insert registration number]” in French.

27. (1) For the purposes of clause 16.5 (1) (a) of the Act, the following are requirements that a debt settlement services agreement entered into between a collection agency and a debtor is required to meet:

1. For each debt settlement services agreement with a debtor, the collection agency shall indicate which of the following methods of negotiating the settlement of the debtor’s debts the collection agency will pursue:

i. The collection agency will put forward to each of the debtor’s creditors a proposed schedule of payments in respect of each debt.

ii. The collection agency will put forward to each of the debtor’s creditors, on or before a specified date, an offer to settle the debt with a one-time payment that is less than the amount of the debt.

2. If the collection agency proposes to settle a debtor’s debts by the method described in subparagraph 1 i,

i. the agreement shall include the proposed schedule of payments for each debt,

ii. the agreement shall specify that the maximum payment or security for payment that the collection agency may require or accept for services provided under the agreement shall be 15 per cent of every payment made by the debtor to a creditor in respect of a debt to which the agreement applies, and

iii. the first page of the agreement shall be the document entitled “Repaying Debt and Credit Counselling—What You Need to Know” and dated November 24, 2014, which is available on a Government of Ontario website.

3. If the collection agency proposes to settle a debtor’s debts by the method described in subparagraph 1 ii,

i. the agreement shall state for each debt the date on which an offer to settle will be made and the amount of the one-time payment that will be offered,

ii. the agreement shall specify that the maximum payment or security for payment that the collection agency may require or accept for services provided under the agreement shall be 10 per cent of the amount of each debt, at the time the agreement is signed, that is settled through the collection agency, and

iii. the first page of the agreement shall be the document entitled “Settling Debt—What You Need to Know” and dated November 24, 2014, which is available on a Government of Ontario website.

4. Unless a termination provision set out in the agreement provides for an earlier termination date, the agreement terminates 18 months after the later of,

i. the date the agreement was entered into,

ii. the last day on which a payment was made in connection with the agreement, or

iii. if any debts to which the agreement applies are settled by or through the collection agency, the last day on which such a settlement occurred.

5. The agreement shall disclose whether or not the collection agency receives or will attempt to receive funding from a creditor in exchange for entering into a debt settlement services agreement with the debtor.

6. The agreement must include the following information, in addition to the information required under paragraphs 1 to 5:

i. The name, address and telephone number of the debtor.

ii. The collection agency’s registered name, principal business address in Ontario, telephone number, fax number, e-mail address, website address and...