Insights

Being Sued by a Collection Agency in Ontario: Know Your Rights

Reviewed by Angelos Spingos, Principal Lawyer, Spingos Law · Licensed by the Law Society of Ontario · Last reviewed July 6, 2026

When the plaintiff on a Statement of Claim is a collection agency or a debt buyer rather than your original bank or lender, you may have more room to defend than you think.

First: the deadline still applies

It does not matter who is suing you — if you were served in Ontario, you generally have 20 days to respond. Missing it can lead to a default judgment, so treat the clock the same way you would with any creditor.

What is different when a collection agency sues

Many collection agencies are debt buyers who purchased your account for pennies on the dollar. To win, they must prove they actually own the debt and that the amount is correct — a chain that is frequently incomplete.

• Standing / ownership. The agency must show a valid assignment of your specific account.
• The amount. Interest and fees added after purchase are often disputed.
• The limitation period. Ontario’s two-year clock runs from discovery, usually the last payment or activity — not from when the agency bought the debt.

What to do

1. Write down the date you were served.
2. Do not admit the debt or pay before getting advice — it can restart the limitation clock.
3. In your defence, ask for proof the agency owns the debt and how the amount was calculated.
4. Get a legal review inside the 20-day window.

Whether a collection agency’s claim can be defended depends on the paper trail. That is exactly what a short legal review is for.

General information for Ontario, not legal advice. Reviewed by Angelos Spingos. Last reviewed July 6, 2026.