This is a question that I've often wondered,....

My best guess is because people would hate banks if they had to collect as rudely as third party collection agencies...

They need to keep their Public Relations pristine.

Oh they didn't do anything. I'm just wondering if they aren't being regulated, why don't they collect by themselves all the time.

not really...
if you feel that a bank is harrassing you, complain to their ombudsman...

banks are usually pretty buttoned down though..

What are they doing to you?

so is there any regulation for the first party collectors?

Banks are regulated federally... in this case they would be considered first party collectors... meaning they're collecting their own debt.

Only third party collection agencies are regulated by the collection agencies act. Collection agencies act is provincial.

Are banks' recovery department bounded by Collection Agency Act? Or they can just simply do whatever they want?