17. (1) All funds received by a collection agency in the normal course of business from clients or debtors, other than those which clearly represent payment for fees earned, and all advance payments or deposits for services to be rendered or expenses to be incurred at some future date are deemed to be trust funds.  R.R.O. 1990, Reg. 74, s. 17 (1). (1.1) Subsection (1) does not apply to funds received by a collection agency where the funds are owed to the collection agency itself as a creditor. O. Reg. 460/17, s. 5 (1). (2) Every collection agency or branch thereof shall maintain in respect of all trust funds that come into its hands a separate trust account in any Ontario branch of a bank, a corporation registered under the Loan and Trust Corporations Act
or a credit union as defined in the Credit Unions and Caisses Populaires Act, 2020 authorized by law to accept deposits, and such account shall be designated as the “Collection and Debt Settlement Services Act Trust Account” in English and “compte en fiducie prévu par la Loi sur les services de recouvrement et de règlement de dette” in French. O. Reg. 309/14, s. 6; O. Reg. 127/22, s. 1. (2.1) Every collection agency or branch thereof shall request that the bank, corporation or credit union at which it maintains a trust account include the designations mentioned in subsection (2) in any written reference the bank, corporation or credit union makes to the trust account. O. Reg. 460/17, s. 5 (1). (3) For the purposes of this section, no collection agency or branch thereof shall maintain more than one account designated as a trust account without first notifying the Registrar and obtaining the Registrar’s consent in writing.  R.R.O. 1990, Reg. 74, s. 17 (3). (4) A collection agency or branch thereof shall deposit all trust funds it receives from a debtor located in Ontario, whether by cash, cheque, electronic transfer or otherwise, into the collection agency’s trust account within two banking days of their receipt. O. Reg. 460/17, s. 5 (2). (4.1) No collection agency or branch thereof shall, whether by cash, cheque, electronic transfer or otherwise, deposit any trust funds received from a debtor located in Ontario into a trust account outside of Ontario, or transfer trust funds deposited in the collection agency’s trust account into a trust account outside of Ontario, except in accordance with subsection (4.2). O. Reg. 460/17, s. 5 (2). (4.2) On the clear instructions of a creditor, a collection agency or branch thereof may deposit trust funds received from a debtor located in Ontario into a trust account in another jurisdiction in Canada, or transfer trust funds deposited in the collection agency’s trust account into a trust account in another jurisdiction in Canada, if the trust account in the other jurisdiction has the equivalent restrictions on the use of trust funds as would apply to a trust account in Ontario. O. Reg. 460/17, s. 5 (2). (4.3) No collection agency or branch thereof shall maintain a trust account in another jurisdiction in Canada outside of Ontario into which it may deposit or transfer trust funds received from a debtor located in Ontario, without informing the Registrar, in a form approved by the Registrar, of the account and the creditor’s instruction that the collection agency use the account, and obtaining the Registrar’s consent in writing. O. Reg. 460/17, s. 5 (2). (4.4) Where a collection agency or branch thereof disburses money held in a trust account, the money shall be disbursed directly from the collection agency’s trust account to the recipient and shall not be transferred through any other accounts. O. Reg. 460/17, s. 5 (2). (5) No collection agency shall disburse or withdraw any money held in trust, except in accordance with the terms and conditions upon which the money was received or as otherwise provided.  R.R.O. 1990, Reg. 74, s. 17 (5). (6) Where a collection agency collects debts for other persons in consideration of the payment of a commission or other remuneration it shall remit all money collected to the persons entitled thereto in accordance with subsection 18 (1).  R.R.O. 1990, Reg. 74, s. 17 (6). (7) Nothing in this section shall be construed as affecting the right to any remedy available in law to a collection agency or any other person having a lawful claim to the money held in the trust account referred to in subsection (2).  R.R.O. 1990, Reg. 74, s. 17 (7). (8) When so requested in writing by the Registrar or a person entitled to an accounting, every collection agency shall account within thirty days for all trust funds received from or on behalf of the person entitled to such accounting.  R.R.O. 1990, Reg. 74, s. 17 (8).