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Collection Agencies Regulations

made under Section 28 of the

Collection Agencies Act

R.S.N.S. 1989, c. 77

O.I.C. 75-880 (July 29, 1975), N.S. Reg. 104/75

as amended up to O.I.C. 2013-105 (March 28, 2013, effective June 1, 2013), N.S. Reg. 80/2013


Application

1     (1)    An application for a licence as a collection agency shall be in Form CAA 1 or in such other form as the Registrar may from time to time specify.

 

       (2)    An application for a licence as a collector shall be in Form CAA 2 or such other form as the Registrar may from time to time specify.

 

       (3)    An annual return and application for renewal of collection agency and collector licences shall be in Form CAA 3 or such other form as the Registrar may from time to time specify.

 

2     An applicant for a licence as a collection agency shall file with the Registrar as part of the application an opening balance sheet prepared by a licensed public accountant.

Section 2 replaced: O.I.C. 90-1263, N.S. Reg. 276/90.

 

3     (1)    At the time of an application for a licence or renewal thereof, the Registrar may require that a financial statement be prepared, at the applicant's expense, by a licensed public accountant approved by him.

Subsection 3(1) amended: O.I.C. 90-1263, N.S. Reg. 276/90.

 

       (2)    The Registrar may also require that a financial statement be prepared by such an accountant at any time after the issuance of the licence.


Bonds

4     (1)    The amount of bond required under Section 6 of the Act shall be in amount of $20,000.00.

 

       (2)    The Bond shall be in Form CAA 4 or in such other form as the Registrar may from time to time specify.

 

       (3)    The Registrar may at any time require to be filed such other bond as he deems necessary.

 

5     A bond may be terminated by any person bound thereunder by giving to the Registrar and the collection agency named in the bond at least sixty (60) days notice in writing of intention to terminate, and subject to Section 6, the bond shall be deemed to be terminated sixty (60) days from the date on which the notice is received by the Registrar.

Section 5 replaced: O.I.C. 90-1263, N.S. Reg. 276/90.

 

6     For the purpose of every act or omission occurring

 

                (a)    during the duration of the collection agency licence; or

 

                (b)    during the period prior to termination of the bond under Section 5 where there has been no termination of the collection agency licence,

 

every bond shall continue in force and the collateral security, if any, shall remain on deposit for a period of two years following the termination of the collection agency licence or the termination of the bond, as the case may be.

 

7     The Registrar may declare any bond mentioned in Section 4 forfeited,

 

                (a)    where a collection agency, in respect of whose conduct the bond has been conditioned, or any collector or official of the collection agency has been convicted of

 

                         (i)     an offence under the Act, or

 

                         (ii)    an offence involving fraud or theft or conspiracy to commit an offence involving fraud or theft under the Criminal Code (Canada),

 

and the conviction has become final;

 

                (b)    where proceedings by or in respect of a collection agency, including any member of a partnership, in respect of whose conduct the bond has been conditioned, have been taken under the Bankruptcy Act (Canada) or by way of winding up and a receiving order under the Bankruptcy Act (Canada) or a winding-up order has been made, and the order has become final;

 

                (c)    where a judgment based on a finding of fraud has been given against a collection agency, including any member of a partnership, in respect of whose conduct the bond has been conditioned or against a collector or other official for money collected for any other person, and the judgment has become final; or

 

                (d)    where judgment has been given against a collection agency including any member of a partnership, in respect of whose conduct the bond has been conditioned or a collector or other official of the collection agency on any claim involving a collection matter, and the judgment has remained unsatisfied for a period of ninety days,

 

and thereupon the amount thereof becomes due and owing by the person bound thereby as a debt due the Crown in right of Nova Scotia.

 

8     Where the Crown in right of Nova Scotia becomes a creditor of a person in respect of a debt to the Crown arising from the provisions of Section 7 the Registrar may take such proceedings as he sees fit under any Statute of Canada or Nova Scotia for the appointment of an interim receiver, custodian, trustee, receiver or liquidator, as the case may be.

 

9     (1)    The Registrar may in his discretion

 

                (a)    assign any bond forfeited under Section 7 and transfer the collateral security, if any;

 

                (b)    pay over any money recovered under the bond;

 

to any person who,

 

                (c)    is a judgment creditor of any collection agency, including any member of a partnership, in respect of whose conduct the bond has been conditioned, or a collector or other official of the collection agency, where the judgment was based on a claim arising out of a transaction involving a collection matter;

 

                (d)    in respect of a claim for less than $100.00 against any collection agency, including any member of a partnership, in respect of whose conduct the bond has been conditioned, or a collector or other official of the collection agency, arising out of a transaction involving a collection matter, satisfies the Registrar as to the validity of such claim; or

 

                (e)    has proven a claim in bankruptcy against any collection agency, including any member of a partnership, in respect of whose conduct the bond has been conditioned, in respect of any claim arising out of a transaction involving a collection matter,

 

provided that the claim or transaction occurred during the period referred to in clause (a) or (b) of Section 6.

 

       (2)    The Registrar may, where he deems it advisable, without any order, pay the whole or any part of the proceeds referred to in clause (b) of subsection (1) to the Accountant General of the Supreme Court in trust for such persons as are or may become entitled to share in the proceeds of the bond under the provisions of subsection (1).

 

10   Where a bond has been forfeited and the Registrar has not received notice in writing of any claim against the proceeds of the bond or such part as remains in his hands within two years of the forfeiture, the Registrar may pay the proceeds of the bond or the collateral security, or any part remaining, to any person who made a payment under the bond or who deposited the collateral security, after first deducting the amount of any expenses that have been incurred in connection with any investigation or otherwise relating to the collection agency in respect of whose conduct the bond was conditioned.


Examinations

11   Where a person applies for a collection agency licence, any person who will be in charge of the operation of the agency shall pass a written collection agency examination.

Section 11 replaced: O.I.C. 90-1263, N.S. Reg. 276/90.

Subsection 11(1) repealed; 11(2) renumbered Section 11: O.I.C. 96-580, N.S. Reg. 132/96.

 

12   A candidate who fails an examination may not take a supplementary examination before the expiry of 30 days following the date of his latest examination.

Section 12 amended: O.I.C. 90-1263, N.S. Reg. 276/90.

 

13   A candidate who fails 2 consecutive examinations shall not take any subsequent examination before the expiry of 6 months following the date of his latest examination.

 

14   (1)    The Registrar shall fix the date and duration of each examination.

 

       (2)    The passing grade shall be 75 percent for each examination.

Section 14 replaced: O.I.C. 90-1263, N.S. Reg. 276/90.


Section 15 repealed: O.I.C. 90-1263, N.S. Reg. 276/90.

 

16   Sections 11 to 14 inclusive shall also apply to every application for the renewal of a collection agency licence when the Registrar deems it expedient.

Section 16 amended: O.I.C. 90-1263, N.S. Reg. 276/90; O.I.C. 96-580, N.S. Reg. 132/96.


Fees

17   Fees to be paid to the Registrar are as follows:

 

                (a)    upon application for the granting or

renewal of a collection agency licence ..................................................$451.20

Clause 17(a) amended: O.I.C. 2013-105, N.S. Reg. 80/2013.

 

                (b)    for each branch office of a collection

agency referred to in clause (a) .............................................................$160.85

Clause 17(b) amended: O.I.C. 2013-105, N.S. Reg. 80/2013.

 

                (c)    upon application for the granting or

renewal of a collector's licence ...............................................................$64.10

Clause 17(c) amended: O.I.C. 2013-105, N.S. Reg. 80/2013.

 

                (d)    for each duplicate licence when the original is lost,

stolen or destroyed, and an affidavit made thereto ..................................$36.25

Clause 17(d) amended: O.I.C. 2013-105, N.S. Reg. 80/2013.

 

                (e)    upon registration for an examination ......................................................$48.35

Clause 17(e) amended: O.I.C. 2013-105, N.S. Reg. 80/2013.

Section 17 replaced: O.I.C. 95-846, N.S. Reg. 172/95.

 

18   (1)    No person shall be licensed as a collector unless the person is nineteen years of age or over.

 

       (2)    No person shall be issued a collection agency licence unless the applicant has had two years experience in all phases of collection agency business, or has related experience that, in the opinion of the Registrar, is equivalent thereto.

Section 18 replaced: O.I.C. 90-1263, N.S. Reg. 276/90.


Renewal

19   The Registrar may renew a licence upon its expiry, if an application is made in accordance with the Act and regulations and the conditions prescribed for the obtainment of the said licence are fulfilled.


Registers, accounts and returns

20   A person who holds a collection agency licence must keep a register of the trust accounts in which he enters all amounts received by him in the carrying on of his business for the account of other persons and all the disbursements attributable to such amounts.

 

21   A person who holds a collection agency licence must acknowledge receipt of any amount he receives in the carrying on of his business for the account of other persons, by means of consecutively numbered vouchers of which he shall keep a duplicate for inspection by the Registrar. These vouchers shall include the following information: the date, name of the debtor, amount received, destination, name of the client and indication that the amount is received in trust.

 

22   A person holding a collection agency licence who receives funds for the account of other persons in the carrying on of his business, shall deposit such funds before the expiry of two (2) juridical days following their receipt in a trust account as required by Section 19 of the Act, and he shall disburse that money only in accordance with the conditions prescribed by the Act and regulations and in accordance with the terms of the trust.

 

23   A person who holds a collection agency licence must, within 30 days preceding the date of expiry of his licence, file a detailed return of his business with the Registrar together with recent financial statements audited by a person authorized to practice as a chartered accountant.

 

24   Every holder of a collection agency licence shall, for the purpose of carrying on his activities, maintain separate and adequate premises of which he is the occupant where he may be reached personally, receive clients in private and where he keeps the records and books prescribed by the Act or regulations.

 

25   Every holder of a collection agency licence who keeps a branch office must assign a responsible agent to such branch on a permanent basis, [and] the latter shall keep thereat the information required by the Act and regulations.


Identification

26   (1)    Every collection agency shall, in all written communications permitted under the Act regarding the collection of a debt, use its licensed name.

 

       (2)    Any collector who

 

                (a)    issues a written communication by personal letter, or a form letter having a style of a personal letter, regarding the collection of a debt, shall include the name and signature of the collector and the name of the licensed collection agency on such communication;

 

                (b)    issues a verbal communication permitted under the Act regarding the collection of a debt, shall identify the collector's name as stated in the collector's licence, shall state that the collector is a licensed collector and state the name of the licensed collection agency by whom the collector is employed.

Section 26 replaced: O.I.C. 90-1263, N.S. Reg. 276/90.


Remittance of funds to creditors

27   (1)    Every collection agency shall account for all amounts collected and remit them less his fees to the person entitled thereto on or before the 20th day of the month following the month in which they were collected; however, when the amount collected is less than $15.00, remittance may be made within ninety days after collection.

 

       (2)    Every collection agency shall also account for all amounts collected and remit them less his fees to the person entitled thereto within 30 days following a request submitted to him by the latter.

 

       (3)    Where a collection agency is unable to comply with subsections (1) and (2) and amounts collected by him remain in the trust account for a period of 6 months after collection, he shall remit such amounts to the Registrar who shall keep them in trust and be responsible for remitting them to the person who applies therefor and proves that he is entitled thereto.


Licences

28   (1)    A collection agency licence shall be in Form CAA 5 or in such other form as the Registrar may from time to time specify.

 

       (2)    A collector's licence shall be in Form CAA 6 or in such other form as the Registrar may from time to time specify.


General

29   (1)    A collection agency shall not operate any branch office unless such branch office is authorized by the licence.

Subsection 29(2) repealed: O.I.C. 90-1263, N.S. Reg. 276/90.

 

30   These regulations shall take effect on the 1st day of October, 1975.

 

31   No collector shall make any verbal communication with a debtor unless seven (7) days have elapsed from the date of the first written communication sent to the debtor.

Section 31 added: O.I.C. 90-1263, N.S. Reg. 276/90.

 

32   All records of a collector or a collection agency that are to be discarded and pertain to the collection of a debt shall be shredded prior to disposal to ensure that the identity of the debtor is kept confidential at all times.

Section 32 added: O.I.C. 90-1263, N.S. Reg. 276/90.



[Please note: The forms to these regulations are not available in this format. For a hard copy of these forms, contact the Registry of Regulations or the Department of Service Nova Scotia and Municipal Relations.]