Collection and Debt Settlement Services Act - General Regulation
Bill or Act:
Collection and Debt Settlement Services Act (CDSSA)
Summary of Decision:
Analysis of Regulatory Impact:
The ministry estimates there are administrative costs to the industry in familiarizing itself with the new requirements. If each collection agency takes an average of two hours of management time to do so, it amounts to a one-time cost estimated at $25,076.20 sector-wide under Ontario's Regulatory Cost Calculator. This means there is a Required Offset Value of 1.25 times the administrative cost, or $31,345.25.
This Required Offset Value is accomplished through savings the industry is receiving as a result of regulatory amendments which came into force on January 1, 2018. These amendments ended the registration requirement for individual debt collectors and the requirement for collection agencies to post bonds with the ministry. Together, these measures result in savings of an Annual Average Present value over 10 years of $394,400, which is significantly more than the Required Offset Value.
In keeping with Ontario's Electronic Transmission Guarantee, it is also expected that when collection agencies are required to provide the Registrar with copies of call recordings, on request, the preferred method of providing them will be electronic.
Summary of Proposal:
General Regulation amendments:
• Require collection agencies with 10 or more collectors to record certain calls relating to their debt collection activities;
• Provide an exemption from the CDSSA for paralegals on the same terms as that provided to lawyers;
• Qualify the exemption for lawyers under the CDSSA by requiring them to comply with specific provisions of the Act and its regulations in certain circumstances, and making paralegals subject to the same requirements in the same circumstances; and
• Enable the establishment of administrative monetary (AMPs) penalties by listing prescribed provisions of the Act and regulations that will be subject to administrative monetary penalties (through a minister's regulation), such as the failure to comply with the call recording requirements.
Collection and Debt Settlement Act Regulation Consultation
Ministry of Government and Consumer Services
Policy, Planning and Oversight Division
56 Wellesley Street West, 6th Floor
Toronto, ON, M7A 1C1
January 1, 2019