The Collection Agencies Act prohibits collection agencies from doing certain things and there is a list of key points which each and every individual should understand without any doubt.Just visit this website to get your doubts cleared http://www.gov.on.ca/mgs/en/ConsProt/STEL02_045978.html

couple of points:

1. when the debt is bought the Collection Agency is no longer an "Agent" of the original creditor, but the principal - the original creditor is not "bound" by the actions of the agent and is no longer a legal party to the contract after the sale - the same way Citi took over from Canada Trust.

2. the original contract is still binding on both parties, and "lisenced" collection agents are still required to abide by the act. However, the Ontario government is notorious for failing to enforce both the Credit Reporting Act and the Collection Agencies Act anyway so the loss of protection is moot.You are actually better off dealing with the principal because they won't try to hide behind the third party im not liable BS the banks use - if they are negligent and cause you any damages (whether allowed under the Act or not) you sue them directly - there are no issues of who is too blame. The gov't of Ontario will do nothing for you other than waste your time anyway - if they mess with you sue them!

3. If you live in a Province that thinks your rights have some value (ie. AB or BC) then you can get somewhere with the complaint mechanism.

ranzzzzzzzzzzzzzz, Buttons is correct in what they said. I think you misread what they wrote as well. They didn't say the Agency becomes the new original creditor, but they become the primary creditor.

I remember I saw some posts before that even those collection agencies bought the debt, they are still obliged to follow the Act. After all they are still collection agencies. Furthermore, I don't think buying debts makes them become "original" creditors; it just simply means that they have the full possession of the debts and the original creditors are no longer interested in pursuing. People only sign a loan agreement with original creditors, not with them.

In my recent dealings with the Ontario Ministry of Government and Consumer Services, I was told by an agent of this ministry that if a collection agency buys a debt it then becomes the primary creditor, the Collection Agencies Act does not apply to them if this is the case because the Collection Agency is not collecting for the original debtor, but for themselves. I was told that the Collection Agency Act only applies if the Collection Agency is the third party in the debt collecting process.
Anyone else ever heard of this interpretation of the Collection Agencies Act?