Collection Agency Licence - Out of Province

Definition

A collection agency is defined as a person, other than a collector, who carries on the business of:

• Collecting or attempting to collect debt or debts from a debtor in Alberta under any name that differs from that of the creditor to whom the debt is or was originally owed, regardless of to whom or where the payment is made
  
  
• On behalf of another person, or
  
  
• Where the person has purchased a debt or debts that is or are in arrears
  

Unless they are collecting a debt of which they are the original creditor or owner, acquired the debt  through a merger, the acquisition of another business, the seizure of accounts receivable under a security agreement, or were assigned the debt for the purpose of financing the transaction. Specific information on the exemptions can be found in section 1(b) of the Collection and Debt Repayment Practices Regulation.

Licensing Requirements

Note: Failure to provide complete information will delay processing of your application and may result in a refund of your fees and closure of your file.

To get a licence for an out of province collection agency business you must provide the following:

• Completed Application (pdf) for a Collection Agency Licence (Note: A licensing fee of $168. Your cheque should be made payable to the Minister of Finance. If you are applying in person, you can also pay this fee using Debit, Visa, MasterCard, Debit or cash. This fee is for a one-year licence. Licences take effect the date they are issued. The department will send you a notice and the appropriate forms before your licence needs to be renewed. License holders must notify Service Alberta in writing if the address on their business licence changes.)
  
  
• Completed Application (pdf) for Collector’s License (fee of $72 for each collector)
  
  
• Security in the amount of $25,000*.  You may get this security in one of two ways:
          (Security does not apply to agencies that are only collecting debts that they have purchased.)
  
  
  • General Surety Bond (pdf)
    
    
  • Cash Security Agreement (pdf) accompanied by: 
    
    
    • An Irrevocable Letter of Credit (pdf), or
      
      
    • Cash (including payment by bank draft, money order, certified cheque – all of these are payable to the Minister of Finance), or
      
      
    • A term deposit or other similar instrument in the name of the Minister of Finance, c/o Service Alberta, 3^rd Floor, 10155 102 Street, Edmonton, Alberta, T5J 4L4, in trust for (name of licensee)
      

*Note:  In accordance with the Security agreement, the security provided will be held for two (2) years after the agreement expires or for two years and three months (27 months) from the date the business license expires or the business closes or longer in the event of a claim being received.

The amount of security given is a minimum security requirement.  The amount could increase at the discretion of the Director of Fair Trading. When setting the security amount, the Director can consider the following: the department’s previous history with the business and its partners or directors, the business’s financial history, and criminal conviction

• Completed Trust Account Information form (pdf) (this form is not required if the agency will only be collecting debts that they have purchased)

Note:  Trust money must be deposited in a financial institution that is registered in and is actively operating in Alberta. The Director of Fair Trading must approve any request for an out-of-Alberta trust account.

• A letter from the collection agency stating that it will allow Service Alberta or staff from other provincial jurisdictions access to its records for the purposes of investigation or financial review
  
  
• A letter from the collection agency stating that it agrees to be governed by and will comply with the requirements of the Fair Trading Act and the applicable regulations under the Act
  
  
• A letter from the collection agency requesting approval to maintain a trust account outside of Alberta
  
  
• A letter from the collection agency stating that if they cease to do business, they will maintain their financial records for three years
  
  
• Agency must be extra-provincially registered to operate a business in Alberta.  This must be done within 30 days of the licence issued date

For other information on extra-provincial registration, please visit the Corporate Registry section of this website.

Upon completion of the necessary documents for application, please forward directly to the address shown above in the letterhead.  Should you have any questions or require assistance with these forms, please do not hesitate to contact our office.

Collection agencies should pay particular attention to the following sections:

• Section 12 of the Collection and Debt Repayment Practices Regulation regarding knowledge of the legislation and prohibited collection practices
  
  
• Section 13 of the Collection and Debt Repayment Practices Regulation regarding advertising
  
  
• Sections 14 through 20 of the Collection and Debt Repayment Practices Regulation regarding maintaining a trust account
  
  
• Section 21 of the Collection and Debt Repayment Practices Regulation regarding issuance of receipts
  
  
• Section 21.1 of the Collection and Debt Repayment Practices Regulation regarding settlement agreements
  
  
• Section 22 of the Collection and Debt Repayment Practices Regulation regarding reports to creditors
  
  
• Section 23.1 of the Collection and Debt Repayment Practices Regulation regarding credit reporting
  
  
• Section 23.2 of the Collection and Debt Repayment Practices Regulation regarding complete accounting of a debt to the debtor
  
  
• Section 23.3 of the Collection and Debt Repayment Practices Regulation regarding retaining records
  

Fair Trading Act

Collection and Debt Repayment Practices Regulation

Copies of legislation can be obtained from the Queen’s Printer Bookstore at:

Park Plaza, 5 floor
10611-98 Avenue
Edmonton, Alberta  T5K 2P7
Telephone: 780-427-4952 

To call a Government of Alberta office toll free (in Alberta), dial 310-0000 and follow the instructions.