Bill 73 (Legislature 15, Session 2)

L15 S2 1513

Alberta — Bills

No. 73 2nd Session, 15th Legislature, Alberta 13 Elizabeth II BILL 73 A Bill for the Licensing and Regulation of Collection Agencies HON. MR. MANNING Printed by L. S. WALL, Printer to the Queen's Most Excellent Majelrty, Edmonton, Alberta, 1965

Explanatory Note This Bill provides a separate Act for the licensing and regulation of collection agencies. At present they are governed by regulations made under

section 6 of The Licensing of Trades and Businesses Act. Administrative jurisdiction is transferred from the Depart ment of Industry and Development to the Department of the Attorney General. 2.

Definitions. 3. Inapplicability of Act to certain ,classes of persons.

BILL No. 73 of 1965

An Act "for the Licensing and Regulation of Collection Agencies (Assented to 1 1965) HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of Alberta, enacts as follows: 1. This Act may be cited as tiThe Collection Agencies Act". 2.

In this Act, (a) "Administrator" means the employee in the De partment of the Attorney General designated by the Attorney General as the Administrator of this Act; (b) "collection agency" means a person, other than a collector, who carries on the business (i) 'Of collecting debts for other persons, or (ii) of receiving money periodically from persons for distribution to creditors of those persons, in consideration of the payment of a commission or other remuneration, and includes a person who takes an ass,ignment of debts in consideration of such pay ment; (c) 6l'collector" m'eans a person employed, appointed or authorized by a collection agency to solicit business or collect debts for the collection agency. 3.

This Act, other than

section 14, does not apply (

a) to barristers and solicitors in the regular practice of their profession, or (

b) to an insurer, agent 'Or broker licensed under The Alberta Insurance Act to the extent of the business autho:dzed by the licence or to his employees in the regular course of their employment in that business, or (

c) to an assignee, custodian, liquidator, receiver, trustee or other person licensed or acting under the Bankruptcy Act (Canada), The Companies Act, The Judicature Act or the Winding-up Act (Canada) or a person acting under the 'Order of any court, or

4. Collection agencies ,and collectors working for collection agencies are required to be licensed. s. Application for a licence. 2

(d) (

e) to a bank, treasury branch, 'Or trust company 'Or the employees thereof in the regular course of their em ployment, or to a real estate agent or broker or his employee licensed under The Real Estate Agents' Licensing Act to the extent of the business authorized by the licence. 4.

(1) No person shall carryon the business ofa collectiQn agency without a collection agency licence issued under this Act.

(2) No 'Person shall act as a collector for a c.ollection agency with.out a c.ollector's licence iissued under this Act.

(3) No collection agency shall employ any person as a collector unless that person holds a collector's licence.

(4) No ,person shall (

a) advertise himself, or (

b) in any way hold himself out, as acting as a collector or as carrying on the business of a collection agency unless he holds a collection agency licence. 5.

(1) An application for a licence as a collection agency shall be made to the Administrator in the prescribed form and shall be accompanied by (

a) the prescribed licence fee, (

b) the security required under subsection (3L (

c) an affidavit (

i) of the applicant, 'Or (ii) where the applicant is a partnership, 'Of each of the partners, .or (iii) where the applicant is a corporation, of each of the directors, showing what, if any, convictions there are against him, (

d) copies of forms of agreement to be entered into with the collection 'agency by persons for whom the col lection agency acts, (

e) oopies of forms and letters ,that the collection agency uses or proposes to use in making demands for the collection of money, and (

I) such other information as may be required by the regulations.

(2) An application for a licence as a collector shall be made to the Administrator in the prescribed form and shall be accompanied by 2 (

a) the prescribed licence fee, (

b) the security required under subsection (3), (

c) an affidavit of the applicant showing what, if any, convictions there are against him,

6. Issue of licences. 7. Appeals from refusals to issue licences or suspensions and cancellations of licences. 3

(

d) a letter signed by a collection agency stating that the applicant is or will be employed by the agency as a collector, and (

e) such other information as may be required by the regulations.

(3) A licence shall not be issued to any person until there is deposited with the Administrator security in the amount and form prescribed by the regulations, for faithful, honest and lawful performance by that person of the business or employment in respect of which the licence is to be held. 6.

(1) The Administrator may make whatever inquiry and investigation he considers sufficient regarding (

a) an applicant for a licence, or (b). where the applicant is a partnership, each partner, or (

c) where the applicant is a corporation, each director, and may issue or refuse to issue the licence applied for where in his, opinion that action is in the public interest.

(2) The Administrator, in his dis,cretion, may suspend or ,cancel a licence when the licensee, or one of the partners or directors of the licensee, (

a) is convicted of an indictable offence or an offence punishable iby impris'Onment for two or more years, or (

b) is convicted of a contravention of this Act or the regulations, .or (

c) fails to pay a judgment against himself for damages sustained by reas.on of

an act or 'Omission of his or 'Of an employee of his done or occurring in or in con nection with the business or employment in respect 'Of which the licence is held, or (

d) has made an untrue statement (

i) in his appUcation f.or a licence, 'Or (ii) in a return made or information produced to the Administrator, or (

e) neglects or refuses to make a return or to produce to the Administrator any information required pur suant to this Act or the regulations, or (

I) is not in the opinion of the Administrator a fit and proper person to hold a licence. 7.

(1) A person who is refused a licence 'Or whose licence is suspended or cancelled under

section 6 may, within thirty days thereafter appeal the decision of the Administrator by filing a notice of appeal with the Deputy Attorney General.

(2) The Deputy Attorney General shall refer the appeal to an appeal board consisting of three persons appointed by him, 'One of whom shall be a judge of a district court. 3

8. Duration of licences. 9. Display of licences. 10. Temporary licences to estates. II. Moneys collected are to be placed in 'a trust account. 12. Records are to be kept and annual returns m'ade to the Administrator. 4

(3) The Deputy Attorney General shall not be a member of an appeal board.

(4) After holding a hearing the appeal board may uphold the Administrator's decision or it may direct him t.o issue the licence applied for or reinstate the suspended .or can celled licence. 8.

(1) Subject to this

section a licence issued pursuant to this Act, expires .on the thirty-first day .of December .of the year for which it was issued, unless s.ooner ,suspended or cancelled.

(2) A temporary licence terminates in acc.ordance with the regulations.

(3) The licence of a c.ollector (

a) terminates upon his ceasing t.o be employed by a collection agency as 'a collector, and (

b) is suspended or cancelled, as the case may be, UP.on the suspensiDn .or cancellation of the collecti.on agency licence .of his employer. 9.

(1) The holder of a collection agency licence shall display his licence and the licences of his emplDyees in a conspicious pDsitiDn in the principal 'Office or place in the Province where he is engaged in Dr carries on the busines,s in respect of which the licences are held.

(2) Each person in charge 'Of orempl.oyed in an 'Office 'Or place of 'business of a collection agency, .other than the principal place of business, shall on the request .of any per son inform that person of the address or location of the office or place of business in .the Pr.ovince in which the licences are displayed. 10.

Where a person who holds a collection agency licence dies, the Adminis,trator may grant a temporary licence to his executor or administrator, and in such a case all em ployees of the deceased perSQn who hold licences under this Act shall be deemed to be licensed as 'empl.oyees 'Of the execu..: tor .or admiinistrator. 11. Every cDllection agency shall deposit all moneys col lected by it, less the proper earned cQmmission 'Of the agency, in a separate trust account in a bank or treasury branch. 12.

(1) Every collection agency shall keep proper records and ho'Oks of account showing moneys received and moneys paid out, including a receipt hook, cash book, clients' ledger and journal. 4

13. Approval of collection agency forms by the Administrator. 14. General control over the use of objectionable forms in attempting to collect debts. 5

(2) In the month of January in each year, a person who held a collection agency licence in the preceding year shall file 'a return with the Administrator. (3) 'The return (

a) shall give the address .of each .office in which he carried 'On the business in respect of which the licence was issued in the immediately preceding calendar year, and (

b) shall give the names and addresses 'Of each of his employees who have been employed by him during the immediately preceding calendar year. (4) 'The return shall contain such other inf.ormati.on with respect to the agency as may be prescribed by the regula tions. 13.

(1) No c.ollection agency or c'Ollector .shall (

a) enter into any agreement with a person f'Or whom the collection agency acts unles,s a copy .of the form 'Of the agreement is approved by the Adminsitrator, Dr (

b) use any form or form of letter tD collect 'Or attempt tD collect money from a debtor unless a copy of the form or form letter is approved by the Adminis trator.

(2) The Administrator may refuse to approve any form that, in his opinion, (

a) in any way misrepresents the rights and pDwers 'Of acollecti'On agency or 'Of a person for wh'Om the C'Ol lection agency acts, .or (

b) in any way misrepresents the 'Obligations 'Or legal liabilities 'Of a dehtor, 'Or (

c) is in any way misleading as tD its true nature and purp.ose Dr that purports to he a court form or other legal pr'Ocess. 14. (1) 'This

section applies tD persons who are not col lection agencies 'Or c'Ollect'Ors.

(2) Where (

a) the Administrat'Or has reason tD helieve that a per son is using a form Dr f'Orm .of letter t'O collect 'Or attempt to collect a debt from a debtor, and (

b) the Administrator is of the opini'On that the f'Orm or form 'Of letter is objectionable on any 'Of the grounds on which an approval can be refused under sectiDn 13, the Administrat'Or may issue an order directing that perSQn to cease using that fDrm 'Or form 'Of letter by a date specified in the 'Order and n'Ot tD use any other f'Orm .or f'Orm 'Of letter 'Ofa similar nature. 5

15. Enforcement of security. 16. Offences and penalties. 17. Evidence in prosecutions. 6

(1) Where a person in respect of whom security is deposited under

section 5 is liaJble to another person for damages sustained by that other person by reason 'Of

an act 'Or omissi'On 'Of the secured person, 'Or his servant, (

a) during the course 'Of the business or employment in respect of which .the security was given, and (

b) during the peri'Od in respect 'Of which the security was given, the insurer on the security is, to the amount set 'Out in the b'Ond 'Or policy, liable to indemnify the pers'On who sustained the damage and that person may in an action for the dam ages join the insurer 'On the security, notwithstanding that he is not a party to the s'ecurity.

(2) This secti'On does n'Ot apply to any action c'Ommenced m'Ore than two years after the expiration 'Or cancellation 'Of the licence to which the security relates. 16.

(1) A person who contravenes secti'On 4 is guilty of an offence and liable 'On

summary c'Onvicti'On to a fine of n'Ot m'Ore than five hundred dollars and in default of pay ment to imprisonment for a term not exceeding twelve m'Onths.

(2) A person wh'O fails to c'Omply with an 'Order issued under suhsecti'On (2) of

section 14 is guilty of an 'Offence and liable 'On

summary conviction to a fine 'Of n'Ot more than tw'O hundred dollars and in default of payment to imprison ment for a term not exceeding three m'Onths.

(3) A person wh'O contravenes any prQvisi'On 'Of this A'ct 'Or the regulations f'Or which a penalty is n'Ot 'Otherwise provided is guilty 'Of an offence and liable 'On

summary convictiQn t'O a fine of not more than twQ hundred dQllars and in default of payment t'O impris'Onment f'Or a term n'Ot exceeding six mQnths.

(4) A perSQn who is c'Onvicted of a sec'Ond or sub sequent offence under this Act may, in additiQn t'O or in lieu 'Of any other penalty, be sentenced tQ a term 'Of imprisQn ment of not mQre than 'One year. 17.

(1) A certificate purporting to be signed by the AdministratQr and t'O the effect that the perSQn named rtherein did 'Or did not at any given time or during any given peri'Od hold a licence as (

a) a c'Ollection agency, or (

b) a c'Ollector, shall be admitted in evidence as prima facie pro'Of 'Of the facts stated therein, with'Out prQ'Of of the signature 'Or appointment of the pers'On signing the certificate.

(2) A statement in a letter, advertisement, card 'Or other document or paper tQ the effect that a person is engaged in the business of a collectiQn agency 'Or is acting as a collector 6

18. Authority to make regulations. 19. Repeal of provisions in

chapter 175 of the Hevised Statutes providing for the regulation of collection agencies. 20. Commencement of Act. !7

is admissible in evidence as prima facie proof that he is so engaged or acting, as the case may be. 18. The Lieutenant Governor in Council may make regu lations (

a) prescribing ,the fees payable for different classes of licences, (

b) prescribing the amount, terms, conditions and form of secur,ity to be given under

section 5 for different classes .of licences, (

c) prescribing forms for use under this Act and pro viding f.or their use, (

d) providing for, and prescribing the term and other conditions of, temporary licences, (

e) requiring records to be kept and returns to be made to the Administrator, (

f) respecting advertising by persons licensed under this Act, (

g) requiring and governing the surrender of licences that have been suspended or cancelled or that have terminated, (

h) regulating ,the appointment of and procedure before an appeal board, (

i) prohibiting or regulating the use of any particular method in the collection of debts, (

j) governing the control and disposition .of moneys collected fbycollection agencies that are payable to clients .of collection agencies, and (

k) respecting any matter he considers necessary or advisable to carry out effectively the intent and purpose of this Act. 19.

(1) The Licensing of Trades and Businesses Act is amended (

a) as to

section 2 by striking out clause (b), (

b) by striking out

section 6.

(2) Every collection agency licence issued under The Licensing of Trades and Businesses Act that is subsisting at the commencement of this Act shall continue to subsist (

a) until the thirty-first day of March, 1966, or (

b) until it is cancelled Dr it terminates for any reason that a collection agency licence may be cancelled or does terminate under this Act, Dr (

c) until it is replaced by a collection agency licence issued under this Act. !20. This Act comes into force on the first day of August, 1965. .7

18. Authority to make regulations. 19. Repeal of provisions in

chapter 175 of the Hevised Statutes providing for the regulation of collection agencies. 20. Commencement of Act. !7

is admissible in evidence as prima facie proof that he is so engaged or acting, as the case may be. 18. The Lieutenant Governor in Council may make regu lations (

a) prescribing the fees payable for different classes 'Of licences, (

b) prescribing the amount, terms, conditions and form of secudty to be given under sectionS for different classes of licences, (

c) prescribing forms for use under this Act and pro viding for their use, (

d) providing for, a.nd prescribing the term and other conditions of, temporary licences, (

e) requiring records to be kept and returns to be made to the Administrator, (

f) respecting advertising by persons licensed under this Act, (

g) requiring and governing the surrender of licences that have been suspended or cancelled or that have terminated, (

h) regulating ,the appointment of and procedure before an appeal board, (

i) prohibiting or regulating the use of any particular method in the collection of debts, (

j) governing the control and disposition of moneys collected by collection agencies that are payable to clients 'Of collection agencies, and (

k) respecting any matter he considers necessary or a.dvisable to carry out effectively the intent and purpose of this Act. 19.

(1) The Licensing of Trades and Businesses Act is amended (

a) as to

section 2 by striking out clause (b), (

b) by striking out

section 6.

(2) Every collection agency licence issued under The Licensing of Trades and Businesses Act that is subsisting at the commencement of this Act shall continue to subsist (

a) until the thirty-first day of March, 1966, or (

b) until it is cancelled or it terminates for any reason that a collection agency licence may be cancelled or does terminate under this Act, or (

c) until it is replaced by a collection agency licence issued under this Act. 20. This Act comes into force on the first day of August, 1965. .7

No. 73 SECOND SESSION FIFTEENTH LEGISLATURE 13 gLIZABETH II 1965 BILL

An Act for the Licensing and Regulation of Collection Agencies Received and read the First time ..... Second time ...................................... .. Third time ..... RON. MR. MANNING Title: 1965 (15th, 2nd) Bill 73,

An Act for the Licensing and Regulation of Collection Agencies

Document details

Collection	Alberta — Bills
Citation	L15 S2 1513
Type	bill
Volume / chapter	L15 S2 1513
Language	en
Format	json
Source	PROVINCIAL
Identifier	b18aedf4cc62ae61ad7b6fcee42686968b3050c9

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