Having drawn from the expertise of Atradius Collections' local offices, the International Debt Collections Handbook explains the different regulations and procedures for debt collections in Canada.
In the amicable phase, Atradius Collections follow a collection process that is professional at all times with the objective of retaining the relationships between our clients and their debtors whenever possible. Our staff of collection professionals carry out the first collection tier in-house. We pursue debtors verbally and in writing within the bounds of federal and provincial laws.
Atradius Collections maintains direct contact with all debtors and clients whenever possible. However, if required, we have local debt collection agency contacts throughout Canada to assist our clients’ collection needs. At the present time, we cannot offer a field service for visiting debtors in Canada.
The collection of interest is permissible under Canadian law. If the terms and conditions of the contractual agreement between the client and the debtor contain a clause that permits the collection of interest costs, then it may be added to the overall debt. Canada’s Criminal Code makes it a crime to set an interest rate above 60%.
Debt collection costs
The addition of collection costs (success fees) is not permissible under Canadian law. However, if the terms and conditions of the contractual agreement between the client and the debtor contain a clause that permits the collection of costs, then it may be added to the overall debt.
The Debt Collections Handbook presents a snapshot of Canada's economic situation and covers the following topics:
- Legal procedures
- Insolvency proceedings
- Time frame and outcome
To read more about steps and procedures undertaken in debt collections in Canada: