Document background
The Notice of Intent to Collect Debt is a mandatory document in the Canadian debt collection process, serving as a formal notification before initiating collection activities. It must be issued in compliance with provincial debt collection laws and federal regulations, including PIPEDA for privacy considerations. This document is typically used when initial payment requests have been unsuccessful and the creditor intends to escalate collection efforts. The notice must contain specific information such as debt details, creditor information, and debtor rights, with content requirements varying by province. The timing of this notice is crucial, as it often starts statutory notice periods and must be delivered before certain collection actions can commence. For businesses extending credit or dealing with accounts receivable, understanding and properly utilizing this document is essential for legal compliance and successful debt recovery.
