A Canadian Debt Validation Letter is a formal written request from a consumer to a debt collector demanding verification and documentation of a debt that the collector is attempting to collect. Unlike the United States, which has the federal Fair Debt Collection Practices Act (FDCPA), Canada regulates debt collection through provincial legislation. Each province has enacted its own consumer protection and collection practices legislation that imposes licensing requirements on collection agencies and establishes rules of conduct.

In Ontario, the Collection and Debt Settlement Services Act (R.S.O. 1990, c. C.14) and its regulations require collection agencies to be registered with the Ministry of Public and Business Service Delivery. Collectors must provide their name, the name of the agency, and the amount of the debt in their initial contact. Ontario Regulation 74 sets specific rules about communication methods, contact hours, and prohibited practices. British Columbia regulates collectors under the Business Practices and Consumer Protection Act (S.B.C. 2004, c. 2), which prohibits deceptive and unconscionable practices by debt collectors. Alberta’s Fair Trading Act and Collection and Debt Repayment Practices Regulation set similar standards.

In Quebec, the Act Respecting the Collection of Certain Debts (C.Q.L.R., c. R-2.2) provides specific consumer protections, including the requirement that collectors identify themselves and their client in writing, prohibitions on harassment and intimidation, and restrictions on contacting third parties about the debt. Quebec consumers also benefit from the Consumer Protection Act (C.Q.L.R., c. P-40.1) which provides additional protections for consumer transactions.

A Canadian Debt Validation Letter should be sent when a consumer receives a collection notice for a debt they do not recognize or believe they do not owe. Because Canada does not have a federal 30-day validation window like the US FDCPA, the consumer’s right to dispute a debt is governed by general principles of provincial collection legislation and common law. However, sending a prompt written dispute creates a paper trail and may trigger obligations on the collector under provincial licensing regulations.

This letter is essential when the amount being collected does not match the consumer’s records of the original debt, when a consumer suspects the debt has already been paid or settled, when a debt may be beyond the applicable limitation period (2 years in Ontario, BC, and Alberta; 3 years in Quebec), or when a consumer suspects identity theft and debts have been opened fraudulently.

Additional scenarios include situations where the collection agency is not properly licensed in the consumer’s province of residence, where a medical debt may have been covered by provincial health insurance but was incorrectly billed, where the consumer is being contacted about a debt belonging to a family member or someone with a similar name, and where a debt has been sold multiple times and the current collector’s records may be inaccurate.

Canadian consumers should be aware that making a payment or written acknowledgment on a time-barred debt can restart the limitation period in most provinces. The debt validation letter explicitly states that it is not an acknowledgment of liability to avoid inadvertently reviving a time-barred debt.

An effective Canadian Debt Validation Letter must include the consumer’s full legal name and current mailing address, including province and postal code. The consumer should NOT include their Social Insurance Number (SIN) in this letter, as it is not required for debt validation and sharing it unnecessarily creates identity theft risk.

The debt collector must be identified by name, address, and the account or reference number assigned in their collection notice. This allows the collector to locate the account and respond with the correct documentation. The consumer should reference the date of the initial collection letter or contact.

The validation request should demand specific documentation: the name and address of the original creditor, the original account number, the amount of the original debt versus the amount being collected (with an itemized breakdown of fees, interest, and charges), a copy of the original signed agreement or contract, proof that the collector is licensed to collect in the consumer’s province, and verification that the debt is within the applicable limitation period.

An explicit dispute statement is essential, stating that the consumer disputes the debt and that the letter does not constitute an acknowledgment of liability or a promise to pay. This language is critically important in Canada because a written acknowledgment can restart the limitation period under provincial limitations legislation.

A demand to cease collection activity until validation is provided should be included. While Canadian provinces do not have a statutory cease-collection requirement identical to the FDCPA, provincial collection legislation prohibits certain aggressive collection practices, and a written dispute creates a record that can be used in a complaint to the provincial regulator.

The letter should be sent by registered mail with return receipt requested (through Canada Post) to create proof of delivery. The consumer should retain copies of the letter and the delivery confirmation for their records.