Getting a call or visit about an unpaid debt can be stressful, especially when you aren't sure what a collection agency in Manitoba can and cannot do.
Manitoba's debt collection and repossession laws set rules around when collectors may contact you, how you should be treated and when property may legally be seized or repossessed. Understanding those rules can help you know what to expect and where to turn if you have questions.
At City Collections, we believe people should be treated with dignity and respect throughout the process. A debt or repossession matter can already be difficult without adding unnecessary confusion.
Disclaimer: This article provides general information about debt collection and repossession in Manitoba. It is not legal advice. The rules that apply can depend on the debt, financing agreement, property and circumstances of the individual case. For advice about your situation, contact Manitoba's Consumer Protection Office or a qualified legal professional.
1. When Can a Collection Agency Contact You in Manitoba?
Manitoba places limits on when collection calls and personal visits can take place.
Under The Consumer Protection Act, relevant collection calls and visits cannot happen before 7:00 a.m. or after 9:00 p.m. They are also not allowed on Sundays or statutory holidays.
These restrictions help protect consumers from collection-related calls and visits outside permitted hours. If you believe someone has contacted you outside the permitted times, keep a record of the date, time, person's name and the agency they represented.
Source: Manitoba Consumer Protection Office – Collection Practices: Your Rights and Responsibilities
2. Collection Agencies Cannot Harass or Mislead You
Being contacted about a legitimate debt is not the same as being harassed.
Manitoba's Consumer Protection Office states that collection agencies cannot harass you or your family, deliberately mislead you with documents that look like legal or court documents, or threaten to repossess goods without having the proper authority to do so.
The rules also prohibit harassment of neighbours or friends in an attempt to locate you or your family.
You should be able to understand who is contacting you, why they are contacting you and what legal authority they have. If something you're told or sent doesn't make sense, ask questions. Find out who sent it, what it concerns and which creditor or account is involved.
Source: Manitoba Consumer Protection Office – Collection Practices: Your Rights and Responsibilities
3. You Have the Right to Know Who Is Contacting You
If someone contacts you about a debt, you should know who you're dealing with.
According to Manitoba's Consumer Protection Office, a collector must provide their name, the name of their company, the name of the business or person requesting payment and the balance owing. A collector also cannot request more than what is owed, subject to fees permitted by law.
If you don't recognize the debt or believe the information is wrong, raise the issue with the collector and creditor rather than assuming the information is correct.
It's also a good idea to keep your own records. Save letters and emails, make notes about calls and keep track of payments. If you make a payment to a collector, Manitoba's Consumer Protection Office recommends asking for a signed and dated receipt showing who requested the payment and how much was paid.
Keeping accurate records can help resolve questions or disputes later.
Source: Manitoba Consumer Protection Office – Collection Practices: Your Rights and Responsibilities
4. Debt Collection and Repossession Are Different
Debt collection and repossession are often discussed together, but they aren't the same thing.
Debt collection involves trying to recover money that is owed. Repossession involves taking possession of specific property when there is legal authority to do so.
A financed vehicle is a common example. If the vehicle is collateral for financing, the creditor may have rights connected to that vehicle when the financing agreement is not met. This differs from an unsecured debt, where no specific property has been pledged as collateral.
Manitoba's Consumer Protection Office describes repossession as reclaiming goods purchased on credit when payment is past due and states that repossession must comply with The Consumer Protection Act.
Understanding the difference can help you ask the right questions if you're contacted about a debt or told that a vehicle or other property may be repossessed.
Disclaimer: Depending on the financing arrangement and type of property, additional legislation may also apply.
Source: The Consumer Protection Act - Manitoba Laws
Manitoba Consumer Protection Office – Collection Practices: Your Rights and Responsibilities
5. What Property Can Be Repossessed in Manitoba?
Owing money doesn't mean someone can simply take any property you own.
The Consumer Protection Act places limits on what may be seized or repossessed. Manitoba government guidance also states that a collection agency cannot seize or attempt to seize an item other than what it is authorized to seize.
For example, if a financed vehicle is specifically pledged as collateral for a loan, rights may exist in relation to that vehicle. That doesn't mean unrelated property belonging to the borrower can automatically be taken.
Whether a particular vehicle or other asset can lawfully be repossessed depends on the circumstances, including the financing agreement, security interest in the property and applicable law.
If you're unsure about your repossession rights in Manitoba or whether a particular asset can be repossessed, get information about your own situation rather than relying on a general rule found online.
Disclaimer: Depending on the financing arrangement and type of property, additional legislation may also apply.
Source: Manitoba Consumer Protection Office – Collection Practices: Your Rights and Responsibilities
6. There Are Rules Around Removing Goods
Manitoba also has rules governing how goods may be seized or repossessed.
The Consumer Protection Act restricts seizure or repossession without court approval unless specified conditions are met. Manitoba's Consumer Protection Office explains that goods generally cannot be removed unless the debtor or an adult who has possession and use of the goods is present and aware of the removal, except where there is court authority.
However, the rules include important conditions and exceptions. For example, saying that a vehicle can never be repossessed when you aren't present leaves out important legal details and exceptions.
Manitoba's official consumer information also states that repossession of goods bought on credit must follow The Consumer Protection Act.
If you have concerns about how a particular seizure or repossession was handled, contact Manitoba's Consumer Protection Office or consider getting independent legal advice about your circumstances.
Disclaimer: Depending on the financing arrangement and type of property, additional legislation may also apply.
Source: Manitoba Consumer Protection Office – Collection Practices: Your Rights and Responsibilities
For the specific legal requirements governing the removal of goods, you can also reference: Legislation: The Consumer Protection Act – Manitoba Laws
7. What Should You Do If You Have Concerns?
If you're contacted about a debt or repossession, start by making sure you understand who you're dealing with and what the contact is about.
Confirm:
- the name of the collector
- collection agency and creditor
- and keep records of calls
- letters
- emails
- payments.
If you believe the debt, balance or other information is incorrect, raise the issue rather than ignoring it.
If the matter involves a financed vehicle or another secured asset, your financing agreement and the security attached to the property may be important. A general online article cannot determine whether a particular repossession is lawful because the answer can depend on the specific circumstances.
The Manitoba Consumer Protection Office licenses collection agents and registers collectors. It also provides consumer information and handles consumer-related complaints.
If you're unsure about your repossession rights in Manitoba, the Consumer Protection Office is a good place to start. If the issue involves ownership, a security agreement, court order, disputed repossession or another matter specific to your circumstances, consider getting independent legal advice.
Disclaimer: Depending on the financing arrangement and type of property, additional legislation may also apply.
Treating People With Respect During a Difficult Situation
Collection and repossession work involves more than an account number, balance or asset. There is a person on the other side of the file, and they may be going through one of the hardest periods of their life.
At City Collections, we represent financial institutions, but we also understand the responsibility that comes with dealing directly with their borrowers. We believe those responsibilities go together. Protecting our clients' interests doesn't prevent us from communicating calmly, acting professionally and treating people with dignity and respect.
We've worked in the recovery industry for more than 30 years, and experience has taught us that difficult situations don't need to be made more difficult by poor communication or a lack of consideration.
We also believe people should understand their rights when dealing with debt collection and repossession in Manitoba. Knowing the basic rules won't answer every question, but it can make an unfamiliar process easier to understand and help you know where to turn when you need more information.
If City Collections has contacted you about a specific matter, you can contact our office with questions about the communication you received. For questions about your legal rights or circumstances, Manitoba's Consumer Protection Office or an independent legal professional can provide further guidance.
Official Manitoba Sources
The Consumer Protection Act - Manitoba Laws
Provincial legislation establishing consumer protection requirements, including rules governing debt collection, collection agents, and certain seizure and repossession activities.
Manitoba Consumer Protection Office - Collection Practices
Official provincial guidance outlining consumers' rights regarding collection agency contact, harassment, collector identification, payments, repossession, and court judgments.
Manitoba Consumer Protection Office
The Manitoba Consumer Protection Office administers provincial consumer protection legislation, licenses collection agents, registers collectors, and handles consumer-related complaints.