Debt Repayment Agency Licence - Out of Province

Debt Repayment Agency Licence - Out of Province

Definition

 A debt repayment agency is defined as a collection agency that carries on the activities of:

  • Offering or undertaking to act for a debtor in arrangements or negotiations with the debtor’s creditors, or
     
  • Receiving money from a debtor for distribution to the debtor’s creditors in consideration of a fee, commission or other remuneration that is payable by the debtor

Licensing Requirements

Note: Failure to provide complete information will delay processing of your application and may result in a refund of your fees and closure of your file.

To get a licence for a debt repayment agency business you must provide the following:

  • Completed Application (pdf) for Debt Repayment Agency Licence (Note: A licensing fee of $168 for the agency.  Your cheque should be made payable to the Government of Alberta.  If you are applying in person, you can also pay this fee using Debit, Visa, MasterCard, or cash.  This fee is for a one-year licence.  Licences take effect the date they are issued.  The department will send you a notice and the appropriate form(s) before your licence needs to be renewed.  Licence holders must notify Service Alberta in writing if the address on their business licence changes.)

  • Completed Application (pdf) for Debt Repayment Agent’s Licence (fee of $72 for each debt repayment agent)

  • Original, signed security in the amount of $25,000*. You may get this security in one of two ways:

    • General Surety Bond (pdf)

    • Cash Security Agreement (pdf) accompanied by:

      • An Irrevocable Letter of Credit (pdf) or

      • Cash (including payment by bank draft, money order, certified cheque – all of these are payable to the Government of Alberta), or 

      • A term deposit or other similar instrument in the name of the Government of Alberta, c/o Service Alberta, 3rd Floor, 10155 – 102 Street, Edmonton, Alberta, T5J 4L4, in trust for (name of licensee)

*Note:  In accordance with the Security agreement, the security provided will be held for two (2) years after the agreement expires or for two years and three months (27 months) from the date the business license expires or the business closes or longer in the event of a claim being received. The amount of security given is a minimum security requirement.  The amount could increase at the discretion of the Director of Fair Trading.  When setting the security amount, the Director can consider the following: the department’s previous history with the business and its partners or directors, the business’s financial history, and criminal convictions. Note: Trust money must be deposited in a financial institution that is registered in and is actively operating in Alberta.  The Director of Fair Trading must approve any request for an out-of-Alberta trust account.
  • A copy of the written agreement entered into by the debt repayment agency and the debtor

  • Include the address information for all offices that will be conducting debt repayment activities in Alberta or contacting Albertans

  • A letter from the debt repayment agency stating that it will allow Service Alberta or staff from other provincial jurisdictions access to its records for the purposes of investigation or financial review

  • A letter from the debt repayment agency stating that it agrees to be governed by and will comply with the requirements of the Fair Trading Act and the applicable regulations under the Act

  • A letter from the debt repayment agency requesting approval to maintain a trust account outside of Alberta

  • A letter from the debt repayment agency stating that if they cease to do business, they will maintain their financial records for three years

  • Agency must be extra-provincially registered to operate a business in Alberta (this must be done within 30 days of the licence issued date)

For other information on extra-provincial registration, please visit the Corporate Registry section of this website.

Upon completion of the necessary documents for application, please forward directly to the address shown above in the letterhead.  Should you have any questions or require assistance with these forms, please do not hesitate to contact our office.

General Information

Debt Repayment agencies should pay particular attention to the following sections:

  • Section 12.1 of the Collection and Debt Repayment Practices Regulation regarding knowledge of the legislation and prohibited collection practices

    • The maximum one-time fee that should be charged for a dishonoured cheque or dishonoured pre-authorized debit is $25.

  • Section 13 of the Collection and Debt Repayment Practices Regulation regarding advertising

  • Sections 14, 15, 16, 17, 18, 19.1, and 20 of the Collection and Debt Repayment Practices Regulation regarding maintaining a trust account

  • Section 21 of the Collection and Debt Repayment Practices Regulation regarding issuance of receipts

  • Section 23 of the Collection and Debt Repayment Practices Regulation regarding reports to debtors

  • Section 23.3 of the Collection and Debt Repayment Practices Regulation regarding retainig records

Agreement Requirements

A copy of the written agreement will be required. The agreement must:

  • Have places for the signature of the debt repayment agency and the debtor and the date the agreement is entered into

  • Have places for the name, address and telephone number of the debtor and the name, address, telephone and, if available, fax number and e-mail address of the debt repayment agency

  • Describe all services that are to be provided under the agreement

  • State all fees, separately itemized, that are to be paid by the debtor

  • Have a place to list all creditors as disclosed by the debtor to whom payments will be made under the agreement, and

  • Have a place to state the total amount owed, the payment amount, the schedule of payments to be made and the total number of payments for each listed creditor

Legislation

Fair Trading Act

Collection and Debt Repayment Practices Regulation

Copies of legislation can be obtained from the Queen’s Printer Bookstore at:

Park Plaza, 5 floor
10611-98 Avenue
Edmonton, Alberta   T5K 2P7
Telephone: 780-427-4952

To call a Government of Alberta office toll free (in Alberta), dial 310-0000 and follow the instructions.

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