Debt repayment
By law, any business who acts for or represents a debtor in arrangements or negotiations with a debtor’s creditor for a fee requires a licence. Debt repayment agents are also required to carry a licence in order to carry out their role.
Read the Business Practices and Consumer Protection Act.
Read the Debt Collection and Repayment Regulation.
How to get licensed
Debt repayment agency
You are required to provide the following to be licensed as a debt repayment agency.
Step 1: Provide proof of registration or incorporation
You must provide proof of incorporation or registration during the application process. To register your business, visit OneStop BC Business Registry. If you are starting a new business, visit Small Business BC.
If your business is a partnership or proprietorship, you must provide:
- names of the partners or proprietors
- current copy of any trade name registration(s) under which you intend to operate
If your business is a corporation, you must provide
- names of directors, senior officers, and beneficial owners with voting shares
- current copy of any trade name registration(s) under which you intend to operate
Step 2: Provide municipal business licence
You must provide a copy of your business licence issued by your local municipality.
Step 3: Complete a criminal record check
Senior officers, partners or proprietors of your business must complete a criminal record check.
For Canadian residents, get your criminal record check through our third-party supplier. The results will be sent directly to us.
For non-Canadian residents, a criminal record check from your home jurisdiction is required.
Step 4: Provide personal credit report
All senior officer(s) must provide personal credit report current within 6 months prior to date of application.
For Canadian residents, call Equifax Canada at 1-800-465-7166 or TransUnion at 1-800-663-9980.
For non-Canadian residents, a credit report from a major reporting agency from the country in which you reside is required.
Step 5: Provide financial security held in trust
You must provide financial security held in trust. Should there be a valid claim against your business, it allows us to draw upon this fund. This security is held throughout the term of your licence plus 2-years after the cancellation or expiry of your licence.
The minimum amount of security required is $10,000 or 10% of the gross amount received or collected by the licensee for the preceding calendar year.
Financial security must be provided through one of these:
- Letter of credit – in favour of Consumer Protection BC issued by a financial institute. See sample.
- Surety bond – an insurance policy issued by an insurance company authorized to operate in BC. See sample.
- Safekeeping agreement (i.e. GIC or similar investment issued by a financial institute) – in favour of Consumer Protection BC. See sample.
- Cash – presented as bank draft or money order held in trust by Consumer Protection BC. Note: no interest is paid on cash securities.
Step 6: Provide verification of financial information
You must provide your financial account information verified by your bank. At least one must be a trust account.
Submit the verification & authorization financial and trust account form.
Step 7: Provide business documentations
You will need to submit the following documents:
- all contracts with clients
- all forms use or intend to use with clients for collecting, negotiating, demanding or arranging payments of a debt
Step 8: Complete debt repayment agent application form
Each debt repayment agent is required to complete a debt repayment employee application form.
It is your responsibility to notify us when there are any changes in employees by completing the employee transfer form.
Submit a debt repayment employee application form.
Step 9: Apply for a licence
If your business has more than one location, each location requires its own licence. You must submit all of your supporting documents with your application. Each application may take up to four weeks to process.
If you are operating from your home, a statutory declaration is required confirming that your residence is also a place of business.
Review the application checklist.
Submit a licence application form.
Submit a statutory declaration form.
Step 10: Review and understand your obligations
It is your responsibility to review the laws pertaining to your industry and to understand your obligations.
Debt repayment agent
You are required to provide the following to be licensed as a debt repayment agent.
Step 1: Complete a criminal record check
You must complete a criminal record check, except for telephone only debt repayment agents.
For Canadian residents, get your criminal record check through our third-party supplier. The results will be sent directly to us.
For non-Canadian residents, a criminal record check from your home jurisdiction is required.
Step 2: Apply for a licence
You must submit all of your supporting documents with your application. Each application may take up to four weeks to process.
If you are operating from your home, a statutory declaration is required confirming that your residence is also a place of business.
Review the application checklist.
Submit a licence application form.
Submit a statutory declaration form.
Step 3: Review and understand your obligations
It is your responsibility to review all applicable laws pertaining to your industry and to understand your obligations.