416-784-3770 Ext - 224

Collection Agency or a Law Office? What’s the Difference? And Which One Should You Choose?

Continuing our discussion from the last post, does anyone hired to collect monies owed to you is a collection agency?

Well not necessarily, the person writing or calling a debtor can be a Collection Agency, or it might be a
Law Office (Lawyer or Paralegal) or a third party acting on behalf of the creditor.

How are they different?
Collection agencies are companies specially licensed to contact debtors and are obliged to comply with
ministry rules. In Ontario they are regulated by the Collection Agency Act. Every one of the collection
staff that works for them has to be personally licensed under the Collection Agency Act.
How do they work?
They are allowed to reach out to debtors either by writing them or by phoning them and request
payment for past due invoices, but they have to follow the rules laid out in the Collection Agency Act.
They will also file a report with a credit reporting agency like Equifax or Trans Union .

In our next post, we’ll discuss the work of a collection agency, and the unique capabilities of a law office that is specializing in debt collection. Hoping to see you soon…