Collection agency licence (registration)
In Ontario, a person may not carry on the business of a collection agency unless registered by the Registrar under the Collection and Debt Settlement Services Act, subject to the exceptions in section 2. The Ministry says a registration cannot be transferred to another agency or person. This entry covers Ontario only.
A buyer of a collections firm meets this when the sale could change who runs the agency. Ontario calls the permission a registration rather than a licence. This entry covers Ontario only; check the rules where the agency operates.
What the Ontario rules say
A registered agency shall not carry on business in a name other than the name in which it is registered, or invite the public to deal at a place other than the one the registration authorizes. The Ministry says all active officers and directors must pass a mandatory exam before the agency can register or maintain its registration. The Ministry also says the agency must notify the Registrar in writing within 5 calendar days of changes in officers, directors, controlling interest or members.
What to ask
- In whose name is the registration held, and at which location?
- Because registration cannot be transferred, ask the Registrar how a share sale or an asset sale affects who must be registered.
- Have any incoming officers or directors passed the exam?
See what licences transfer when I buy a business and the entry on licence re-application.
Sources
This definition is checked against primary sources. Links were last confirmed on the dates shown.
- 01Government of Ontario (e-Laws)GovernmentCollection and Debt Settlement Services Act, R.S.O. 1990, c. C.14
- 02Government of Ontario — Ministry of Public and Business Service Delivery and ProcurementGovernmentA guide for collection agencies
- 03Government of Ontario — Ministry of Public and Business Service Delivery and ProcurementGovernmentConducting business — A guide for collection agencies
- 04Government of Ontario — Ministry of Public and Business Service Delivery and ProcurementGovernmentApply to register a collection agency — A guide for collection agencies
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