| Copyright (c) Queen's Printer, Victoria, British Columbia, Canada | Licence Disclaimer |
| This archived statute consolidation is current to November 2, 1999 and includes changes enacted and in force by that date. For the most current information, click here. |
Contents
Section | ||
1 In this Act:
"bailiff" means a person who
(a) for remuneration acts or assists a person to act on behalf of another person in repossessing, distraining or seizing any chattel or in evicting a person from property, or
(b) represents to a person that he or she is acting or is available to act as described in paragraph (a);
"collection agent" means a person, other than a collector, who, for remuneration, does any of the following:
(a) carries on business, or represents to another person that he or she is available to carry on business, collecting debts for others;
(b) collects, negotiates payments of, or demands payment of a debt for another person;
(c) receives money from a debtor for distribution to any of the debtor’s creditors;
(d) arranges or operates, or represents to another person that he or she is available to arrange or operate, a debt pooling system;
(e) carries on the business of, or represents to another person that he or she is available to carry on the business of, taking an assignment of a debt due to another for the purpose of collecting, negotiating payment of, or demanding payment of it;
"collector" means a person who is not a collection agent but who is employed by a collection agent, either generally or for a specific purpose, to do anything referred to in the definition of "collection agent";
"debt pooling system" means an arrangement or procedure whereby a debtor pays to one person money to be distributed or paid, according to a system, by that person to more than 2 creditors of the debtor;
"director" means the Director of Debt Collection appointed under section 18;
"licence" means a licence issued under this Act.
2 (1) Unless the person is the holder of a valid and subsisting licence, a person must not act, or represent to another person that the person making the representation is acting or is available to act, as any of the following:
(a) a collection agent;
(b) a collector;
(c) a bailiff.
(2) For this Act, a bailiff must be licensed as a collection agent, and the provisions of this Act that apply to a collection agent apply to a bailiff.
(3) Subsection (1) does not apply to persons or classes of persons exempted by regulation.
3 (1) An application for a licence as a collection agent must be made in the prescribed form to the director and must be accompanied by the following:
(a) the prescribed fee;
(b) a bond in accordance with the Bonding Act;
(c) a copy of every form that the applicant uses or intends to use to evidence any agreement or arrangement between the applicant and a person for whom the applicant acts;
(d) a copy of every document or form of letter that the applicant uses or intends to use in collecting, negotiating or demanding payment of a debt.
(2) If an applicant carries on or intends to carry on business as a collection agent at more than one location in British Columbia, the applicant must apply for a separate licence as a collection agent for each location.
(3) An application for a licence as a collector must be made in the prescribed form to the director and must be accompanied by the prescribed fee.
(4) A licence expires on December 31 of the year in which it is issued.
4 (1) If the director receives an application under section 3, or suspends or cancels a licence under section 5, the director may make inquiries and require information the director considers necessary.
(2) All information, replies and communications received by the director under subsection (1) are privileged, and no action may be brought against any person in respect of them.
5 (1) This section applies if, in the opinion of the director
(a) the financial responsibility or record of past conduct of an applicant or licensee, or
(b) in the case of an applicant or licensee that is a corporation, the financial responsibility or record of past conduct of any of its officers or directors
is such that it would not be in the public interest for the applicant or licensee to hold a licence.
(2) In circumstances referred to in subsection (1), the director may
(a) refuse to issue a licence, or
(b) if a licence has been issued,
(i) cancel the licence, or
(ii) suspend the licence for a period of time and subject to conditions the director considers necessary.
(3) Without limiting this section, the financial responsibility or record of past conduct of a person may preclude the person, or a corporation in which the person is a director or officer, from holding a licence if one or more of the following circumstances applies:
(a) the person has been convicted of any offence, whether under the Criminal Code (Canada) or otherwise that, in the opinion of the director, involved a dishonest act or intent;
(b) the person is an undischarged bankrupt;
(c) the person was, during a period of 10 years immediately before the application, suspension or cancellation, a bankrupt or a director of a corporation that became a bankrupt while the person was a director, and the creditors in the bankruptcy have not been paid in full;
(d) the person’s licence under the Real Estate Act, Financial Institutions Act, Private Investigators and Security Agencies Act or Mortgage Brokers Act has been cancelled or is under suspension at the date of the application, suspension or cancellation under this Act;
(e) the person makes an untrue statement in an application for a licence under this Act;
(f) the person has refused or neglected to comply with this Act or the Collection Agents Act, 1967, S.B.C. 1967, c. 10;
(g) the person carries on business or is, in the opinion of the director, likely to carry on business, as a collection agent, collector or bailiff in connection or association with a credit reporting business;
(h) the person carries on business or is likely to carry on business in a form or manner that is, in the opinion of the director, likely to convey a misleading appearance that the person is acting for or representing other persons;
(i) the person carries on business required to be licensed under the Private Investigators and Security Agencies Act.
6 (1) This section applies if
(a) an application is made under section 3,
(b) the director takes steps to cancel or suspend a licence under section 5, or
(c) a licence has lapsed or expired.
(2) In circumstances referred to in subsection (1), the director, or another person authorized in writing by the director,
(a) has, for an inquiry, the powers of a commissioner under the Inquiry Act,
(b) may, for an inquiry, accept evidence by affidavit,
(c) may adjourn an inquiry,
(d) must permit an applicant or licensee, for an inquiry, to be represented by counsel,
(e) must, on request, provide the applicant or licensee with written reasons for the refusal, suspension or termination of the licence, and
(f) may, in writing or by telegram, order
(i) a person having on deposit, under control, or for safekeeping funds or valuables of the licensee to hold the funds or valuables;
(ii) the licensee to refrain from dealing with funds or valuables that the licensee has on deposit, under control or for safekeeping;
(iii) the licensee to hold the funds and valuables in trust for an interim receiver, custodian, trustee, receiver or liquidator,
until the director revokes the order or consents to the release of a particular fund or valuable.
(3) If a licensee has committed an offence under any Act of British Columbia or of Canada and the licence is suspended or cancelled, the director must report the particulars of the offence and the suspension or termination to the minister.
7 If the director refuses to issue or renew or suspends or cancels a licence, a person aggrieved by the refusal, suspension or cancellation may appeal it to the Commercial Appeals Commission established under the Commercial Appeals Commission Act.
8 A collection agent is liable for any defalcation and damage caused by the act or omission of any of the collection agent’s collectors done or occurring in or in connection with the collection agent’s business as a collection agent or bailiff.
9 (1) A collection agent must do all of the following:
(a) maintain, in a form and manner satisfactory to the director, proper records and books of account;
(b) maintain a trust account in a savings institution in British Columbia and deposit all money collected from a debtor, or received on behalf of a creditor, or under a debt pooling system, in the trust account;
(c) if the collection agent carries on business as a bailiff, maintain, in a form and manner satisfactory to the director, proper records of chattels repossessed, seized or distrained on, or disposed of, by the collection agent;
(d) maintain the collection agent’s books, records and trust account at the place specified in the collection agent’s application for a licence, unless notice of a new location has been delivered to and approved by the director;
(e) produce, at the request of the director or any person authorized by the director, every record and book for inspection.
(2) A collection agent must not draw money from a trust account except for the following purposes:
(a) paying a creditor money received on behalf of and deposited to the credit of that creditor;
(b) paying the collection agent’s charges and disbursements under an agreement referred to in section 3 (1) (c);
(c) correcting an error caused by money deposited in the trust account by mistake;
(d) making a payment under section 12 (1) (b) or (c).
10 (1) A collection agent must immediately notify the director of all of the following:
(a) any change of address for the collection agent’s office, trust account, any branch office or any of the collection agent’s collectors;
(b) the name and address of every new collector hired by the collection agent;
(c) any collector who ceases to be employed by the collection agent, in which case the collection agent must deliver to the director
(i) the reason the collector ceases to be employed by the collection agent, and
(ii) the licence of that collector.
(2) A collection agent must do all of the following:
(a) display the collection agent’s licence in a conspicuous location at every place in British Columbia where the collection agent carries on business;
(b) not use any agreement, document or letter referred to in section 3 (1) (c) and (d) unless it has first been approved by the director;
(c) not carry on business at any place in British Columbia unless the director approves of the location;
(d) within 3 months after the end of the collection agent’s fiscal year, file with the director a report for the fiscal year in prescribed form signed by the collection agent and the collection agent’s auditor.
11 (1) A collection agent must appoint an auditor, satisfactory to the director.
(2) An auditor must
(a) have access to every book and record of the collection agent that, in the opinion of the auditor, is necessary to carry out the audit,
(b) make an audit and report containing information and statements as may be prescribed,
(c) promptly report to the director any defect or deficiency in the form or maintenance of any book or record maintained by the collection agent at any of the collection agent’s offices, and
(d) file one copy of the audit and report with the director.
12 (1) A collection agent must do the following as applicable, without notice or demand, within 30 days after the end of a month during which the collection agent collected more than $10 for a creditor, or within 60 days after the end of a month during which the collection agent collected less than $10 for a creditor:
(a) account for and pay the money, less the collection agent’s proper charges, to the creditor on whose behalf the money was collected;
(b) if the collection agent cannot within the appropriate period of time locate the creditor, pay the money within 6 months
(i) without deduction to the debtor from whom it was collected, or
(ii) if the collection agent cannot locate the debtor, to the Minister of Finance and Corporate Relations, in which case the money is an unclaimed money deposit under the Unclaimed Money Act;
(c) if the collection agent has collected from a debtor more money than the amount owing to the debtor’s creditors, pay any surplus money, without deduction, to the debtor or, if the collection agent cannot locate the debtor, to the Minister of Finance and Corporate Relations in which case the money is an unclaimed money deposit referred to in paragraph (b) (ii).
(2) If the director, or a creditor or debtor who is entitled to money collected, makes demand, the collection agent must immediately account for the money collected and pay it to the person who is entitled under this section.
13 (1) Unless the collection agent is licensed under this Act at the time the collection agent acts or becomes entitled to charge for collecting a debt, a collection agent must not
(a) attempt to collect,
(b) bring or maintain an action in any court to collect, or
(c) charge for collecting,
a debt for, on behalf of or as assignee of another person.
(2) A statement signed by the director, without proof of the director’s office or signature, must be received in evidence for the purpose of proving the existence, nonexistence or status of licence issued under this Act.
14 (1) A person must not, exert undue, excessive or unreasonable pressure on a debtor, or a member of the debtor’s family or household, or the debtor’s employer
(a) in collecting, negotiating or demanding payment of a debt,
(b) in repossessing, seizing or distraining on any chattel, or
(c) in evicting a person from property.
(2) For the purposes of subsection (1) and without limiting that subsection, undue, excessive or unreasonable pressure is exerted if a person does any of the following:
(a) makes a charge, threat or promise that pertains to matters other than the collection of the debt;
(b) except for the purpose of verifying the employment of the debtor, communicates with the debtor’s employer, without the consent of the debtor;
(c) communicates with a debtor, the debtor’s family or the debtor’s employer in a manner and in circumstances that, because of the nature or frequency of the communications, alarm, distress and humiliation are likely to result;
(d) uses a summons, notice, demand or other document expressed in a language, style, or purport of a form used in a court or under the authority of an Act of British Columbia, or printed or written in the general appearance or format of that form;
(e) uses, after the director makes known the director’s objection to it, an agreement, document, letter or other collection practice;
(f) collects or attempts to collect money from a person who is not liable for the debt;
(g) collects or attempts to collect money that exceeds the amount of the debt owing;
(h) when not licensed as a collection agent, collects or attempts to collect a debt in a name other than the name in which the debt was contracted or incurred;
(i) communicates with a person for the purpose of collecting, negotiating or demanding payment of a debt by a means that the charges or costs of the communication are payable by that person;
(j) communicates with a person for collecting, negotiating or demanding payment of a debt during a day or during the hours of the day when communications are prohibited by regulations made under this Act.
(3) If, in the opinion of the director, a person is causing alarm, distress or humiliation, the director may send to that person written notice of the director’s objection and that person must not use the practice to which the director has objected.
15 A person must not do any of the following, whether on the person’s own behalf or on behalf of another, directly, indirectly or through others:
(a) unless there is a court order to the contrary, remove any chattel claimed under seizure, distress or repossession, in the absence of the debtor, the debtor’s spouse, agent or an adult resident in the home of the debtor or employed by the debtor;
(b) seize, repossess or levy distress against a chattel that is not specifically charged or mortgaged, or to which legal claim may not be made under a statute, court judgment or court order;
(c) remove, seize, repossess or levy distress against a chattel during a day or during the hours of a day when removal, seizure, repossession or distress is prohibited by regulations made under this Act.
16 (1) If, under a debt pooling system, a debtor pays money to a collection agent for distribution to the debtor’s creditors, that collection agent must not act for or represent any of the creditors, and is deemed to act for and represent the debtor.
(2) A debt pooling system must be in writing and signed by the debtor.
17 (1) Except in the case of a debt pooling system, a collection agent must not charge the collection agent’s fees and disbursements to a debtor.
(2) Without the written consent of the director, the fees and charges of a collection agent must not exceed the prescribed fees and charges.
18 A Director of Debt Collection may be appointed under the Public Service Act and is, subject to the supervision of the minister, responsible for the administration of this Act.
19 (1) A person who does any of the following commits an offence:
(a) refuses or neglects to comply with this Act or any order of the director;
(b) makes a false statement in an application for a licence under this Act;
(c) after the director objects under section 14 (3) to any practice, uses that practice.
(2) An individual who commits an offence under subsection (1) is liable, on conviction, to a fine of not less than $100 nor more than $1 000.
(3) A corporation that commits an offence under subsection (1) is liable, on conviction, to a fine of not less than $200 nor more than $5 000.
(4) Nothing in this section prevents the director from taking other disciplinary action provided for under this Act against a person who commits an offence.
(5) A proceeding under this Act must not be commenced more than 2 years after the facts on which the proceeding is based first came to the attention of the director.
20 (1) If a debtor has suffered loss, damage or inconvenience as a result of a contravention of this Act or the regulations, the debtor has a cause of action against the person who contravened this Act or the regulations.
(2) If, in an action under subsection (1), the court finds that the debtor has suffered loss, damage or inconvenience, the debtor is entitled to a judgment for the damages suffered or $100, whichever is greater.
21 (1) The Lieutenant Governor in Council may make regulations referred to in section 41 of the Interpretation Act.
(2) Without limiting subsection (1), the Lieutenant Governor in Council may make regulations as follows:
(a) prescribing forms for application, reporting, or any other purpose where, under this Act, a prescribed form is to be used;
(b) prescribing the fees payable on applications and for licences;
(c) requiring a collection agent, collector or bailiff to keep books, accounts and records as prescribed;
(d) prescribing the information required from and the duties of auditors;
(e) prescribing maximum fees and charges payable to collection agents by creditors and debtors;
(f) prescribing days and hours of any day during which a collection agent and collector must not collect, negotiate or demand payment of, a debt, and during which a bailiff must not seize, repossess or levy distress against a chattel;
(g) prescribing chattels or classes of chattels that are exempt from a prohibition under paragraph (f);
(h) prescribing persons or classes of persons to which this Act does not apply.