Document background
The Accounts Receivable Collection Agreement is essential for businesses operating in Canada that need to engage professional collection services to recover outstanding debts. This document becomes necessary when an organization has exhausted internal collection efforts or lacks the resources to pursue collections effectively. The agreement carefully balances the creditor's need for effective debt recovery with compliance requirements under Canadian federal and provincial regulations, including the Collection and Debt Settlement Services Act, PIPEDA, and various consumer protection laws. It establishes clear protocols for account assignments, collection procedures, fee structures, and reporting mechanisms while ensuring all collection activities remain within legal boundaries. The document is particularly crucial for maintaining professional relationships between creditors and collection agencies while protecting all parties' interests and ensuring regulatory compliance.
