Collection Agencies and Debt Settlement Companies

The Collection and Debt Settlement Services Act regulates the collection practices of collection agencies and its collectors, as well as debt settlement services. This Act requires both agencies and collectors to be licensed, and requires agencies to submit a bond of surety in the amount of $10,000.

Collection agencies and collectors are subject to a number of restrictions when collecting debts from New Brunswick debtors. Section 14 of Regulation 84-256 under the Collection and Debt Settlement Services Act provides guidelines for permissible collection practices and prohibits a number of abusive collection practices. The Collection and Debt Settlement Services Act also prohibits collection agencies from contacting debtors on a holiday. Please consult our list of New Brunswick holidays.

Any company or individual that carries on the business of collecting third-party debt is required to have a licence under this legislation.

Any debt settlement agencies offering to negotiate with creditors on behalf of consumers are required to obtain a licence, follow disclosure and contract requirements, and adhere to prohibited practices under the Act. Prohibited representations, restrictions, and service agreement requirements can be found under Rule CDSS-001 - Debt Settlement Services. Required documentation for all service agreements can be found here.

Failure to comply with the rules and regulations constitutes an offence punishable under the Act and may result in the suspension or cancellation of a licence, the forfeiture of a bond and fines and administrative penalties.

Collector's licence

Each individual employed, appointed, or authorized by a collection agency to solicit business or collect debts for the agency must hold a valid collector’s licence. To apply for a licence to solicit business or collect debts for an agency, applicants must submit an application with a non-refundable application fee, payable to the Financial and Consumer Services Commission and meet the requirements under the Collection and Debt Settlement Services Act and regulations.

The standard licence application processing time is 10 business days after we receive a complete application. If expedited service (two business days for processing) is requested, the applicable fee is double. Whether standard or expedited service is selected, we will follow our standard licensing processes and issue a licence only to suitable applicants who have submitted a complete application. 

Collector’s licences are valid for up to one year, and expire on the same date as the licence of the agency under which they are licensed. For example, if a collector becomes licensed two months after the agency has been licensed the collector’s licence will be valid for only 10 months. To renew a collector’s licence, applicants must complete an application and meet the same requirements under the Collection and Debt Settlement Services Act and regulations as a new applicant. When a licence renewal application is filed after the last issued licence has expired, the applicant must pay the renewal application fee plus a late fee equivalent to half of the application fee.

It is the responsibility of the applicant to become familiar with the Act and the Rules and Regulations. Every applicant should exercise care in completing the application. Extra care will avoid delays which occur when applications must be returned because of incomplete answers or information. Applications for licence will not be processed unless all information and documentation is provided.

For full details about application requirements, documentation that must accompany your application and terms and conditions of maintaining a licence, review the Collection and Debt Settlement Services Act and Regulation 84-256 (General Regulation - Collection and Debt Settlement Services Act).

Agency licence

To apply for an agency licence, applicants must submit an application with a non-refundable application fee, payable to the Financial and Consumer Services Commission and meet the requirements under the Collection and Debt Settlement Services Act and regulations. The standard licence application processing time is 10 business days after we receive a complete application. If expedited service (two business days for processing) is requested, the applicable fee is double. Whether standard or expedited service is selected, we will follow our standard licensing processes and issue a licence only to suitable applicants who have submitted a complete application.

Agency licences are valid for a term of 12 months. When a licence renewal application is filed after the last issued licence has expired, the applicant must pay the renewal application fee plus a late fee equivalent to half of the application fee.

Upon application for renewal, licensees must complete and submit all licensing forms and information requested above with the exception of a copy of the trust agreement and the bond. At renewal, applicants must submit a bond continuation certificate from their insurance agent.

It is the responsibility of the applicant to become familiar with the Act and the Rules and Regulations. Every applicant should exercise care in completing the application. Extra care will avoid delays which occur when applications must be returned because of incomplete answers or information. Applications for licence will not be processed unless all information and documentation are provided.

For full details about application requirements, documentation that must accompany your application and terms and conditions of maintaining a licence, review the Collection and Debt Settlement Services Act and Regulation 84-256 (General Regulation - Collection and Debt Settlement Services Act).

Fees

The fees for obtaining a licence under the Collection and Debt Settlement Services Act are listed below. For full details please review Rule CA-CDSS-002 Fees.