Sued by a Collection Agency in Ontario? How to Respond in Small Claims Court
If a collection agency has filed a claim against you in Ontario Small Claims Court, you have options. This guide covers filing a Defence, the Limitations Act...
Frequently Asked Questions
What happens if I ignore a Small Claims Court claim from a collection agency?
If you do not file a Defence within 20 days of being served, the collection agency can obtain a default judgment against you. This means the court enters judgment without hearing your side, and the agency can then enforce it through wage garnishment, bank account seizure, or a lien on your property.
Can a collection agency sue me for a debt that is over 2 years old?
They can file the claim, but if the debt is statute-barred under s. 4 of the Limitations Act, 2002 (more than 2 years since the last payment or demand), you can raise the limitation defence and the court must dismiss the claim. You must raise this defence in your filed Defence — the court will not apply it automatically.
Does making a small payment restart the limitation period?
Yes. Under s. 13 of the Limitations Act, 2002, a part payment on a debt is treated as an acknowledgment that restarts the 2-year limitation clock. This is why you should get legal advice before making any payment on an old debt.
How much does it cost to file a Defence in Small Claims Court?
As of 2026, the filing fee for a Defence is $77.00. If you cannot afford the fee, you can request a fee waiver from the court clerk.
What if the collection agency cannot prove it owns my debt?
The plaintiff must prove the debt was properly assigned from the original creditor. If it cannot produce a written assignment, notice of assignment to you, the original contract, or account statements, the claim may fail for lack of proof — regardless of whether you originally owed the money.
Contact Legal Assist
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