wow, who cares if a person is licensed or not? As if you should need the government's permission to collect money that is owed. Anyone who appeal to this "little known collection agency fact" is a complete loser.

I think it's amusing and pathetic that you people are such experts on collection agencies. You must steal money from people all the time to have such experience. You know, normal people don't spend time on the internet figuring out ways not to pay their debts -- they just pay them.

This is one of my favorites:

If a collection agent calls, you should ask him for proof in writing that he or she is licensed to collect in your province. The collection agent may say, of course I'm licensed. Unless they prove it to you, you don't have to talk to them.

The law states that BOTH the collection agency and collect agent must licensed to deal in your province. If they aren't, the call is illegal and you need to report them.

This did happen to a friend of mine when a collection agency called him. The agent was brand new and wasn't licensed at all. The agency subsequently was licensed. That agent was collecting illegally and the collection agency should have been fined.

THE REASON WHY:
The collection industry has a high turn over of new employees. ie... not many people like to be collection agents for a living. The collection agency might wait a few weeks to see if the agent is going to work out before they spend the $250 fee to get them licensed.