Do Unpaid Cell Phone Bills Go To Collections?

If you’ve ever missed a cell phone bill payment, you’re not alone. Life happens, and sometimes bills slip through the cracks.

But when those unpaid bills start piling up, they can lead to more than just annoying late fees—they can impact your credit score and even end up in collections.

Let’s break down what happens if your cell phone bill in Canada ends up in collections, how it affects your finances, and what you can do to get back on track.

Key Points

• Your cell phone provider can have a debt collection agency go after you for unpaid cell phone bills.
• If your cell phone account ends up in collections, it can negatively affect your credit.
• To avoid having your cell phone account go into collections, call your provider and ask for a payment plan. 
• If your account is already in collections, you’ll have to settle the bill with the collection agency. 

Can Your Unpaid Cell Phone Bill Go To Collections?

Yes, it can. If you consistently miss payments, your provider may send your cell phone account to a collection agency. This typically happens if you’ve missed multiple payments, and any attempts to contact you to mediate the bill have been unsuccessful.   

In general, you’ll be hit with other penalties before your cell phone provider decides to involve a collection agency. This includes: 

• Late Payment Notice: Most providers will send you a letter reminding you to pay your bill. 
• Late Fees: Most providers will charge late fees if your payment is overdue. 
• Service Suspension: Continued non-payment can result in service suspension or cancellation. This means you could lose access to your phone number and any associated services.​
• Credit Impact: Unpaid bills may be reported to credit bureaus, negatively affecting your credit score.​

Learn more: What Happens If My Debt Is Sold To A Collection Agency In Canada?

How Will Unpaid Phone Bills In Collections Impact Your Credit Score?

Unpaid phone bills sent to collections can severely impact your credit rating:​

• Negative Payment History – First off, depending on your provider, you may have multiple missed payment remarks on your credit report. 
• Collections – If your account is sold to a collection agency, you’ll receive a credit rating of R9, which is the same credit rating as bankruptcy. 

A negative mark like that can have a big impact on your credit score, which in turn can affect your ability to secure loans and even an apartment. 

Learn more: Missed Payments And Your Credit Score

 How Long Does Will A Collections Remark Stay On My  In Canada?

Any unpaid debts, including unpaid cell phone bills, can remain on your credit report for up to six years from the date of your last payment.

Even if you pay it off, the collection account remains on your credit report for up to six years.

 How Long Does A Cell Phone Bill Stay In Collections In Canada?

Collection agencies can try to collect the debt indefinitely. However, they have between 2 – 6 years to take legal action against you, depending on the province you live in. Once the statute of limitations has passed, they cannot take you to court or demand a garnishment of your wages. That said, they can still continue to contact you demanding payment. 

Note. If you acknowledge the debt, your statute of limitations period will reset.

Will Your Cell Phone Provider Send Your Bill To A Debt Collector?

Here’s how major Canadian providers handle unpaid bills:

Will Bell Send Your Unpaid Phone Bill To A Debt Collector?

Bell may report your credit history to credit bureaus and send unpaid accounts to collections. 

If you don’t make a payment within 30 days after the billing date, you will be charged a late fee of 2.91% monthly (41.09% annually). Bell may also suspend your services if you continue to miss your payments. 

If your account balance is overdue, you can log into your Bell account to set up a payment plan. An option called “Make a payment arrangement” will appear in your account if you’re overdue. 

Will Rogers Send Your Unpaid Phone Bill To A Debt Collector?

Yes, Rogers may send your account to a collection agency if you do not pay your bills. Your account may also be suspended or cancelled as a result. 

That said, you’ll first get a notice. If you repay or make a payment arrangement using their “Promise to Pay” program, you can avoid further penalties.

Do note that a late payment will be charged, which will accrue daily until the balance is paid. Moreover, if your services are temporarily suspended, you may be charged a suspension or account processing fee.

Will Koodo Send Your Unpaid Phone Bill To A Debt Collector?

Koodo may send your account to collections, however, you can avoid this by applying for their payment arrangement plans.

If your cell phone bill is past due, Koodo will not only charge you a late fee of 2.91% per month (41.09% annually), but they may also suspend your account. To restart your service, you’ll be charged a reconnection fee.

Will Telus Send Your Unpaid Phone Bill To A Debt Collector?

If your bill payment is late, you’ll be charged a late payment fee of 2.91% per month (41.09% annually), which is compounded monthly starting from the first bill that is delinquent. 

Late payments are also reported to the credit bureau if the bill is not paid within 30 days after the due date. Accounts may also be suspended and sent to collections.

That said, you can avoid further penalties by opting for their payment plan, which allows you to divide your payments into three installments. 

Will Fido Send Your Unpaid Phone Bill To A Debt Collector?

Fido may send your account to collections in an effort to recoup payment. Do note that if they do, they may also charge you additional fees related to collection efforts. 

They will also charge you late payment fees of 3% per month or 42.58% annually. Interest will accrue on a daily basis and will be compounded monthly until the full payment is made. 

Will Virgin Send Your Unpaid Phone Bill To A Debt Collector?

At Virgin, unpaid cell phone accounts may be referred to collection agencies. Unpaid bills will also be charged a late payment fee of 2.91% monthly (41.09% annually) after 30 days past due.

Like Bell, you can set up a payment plan by logging into your account. An option called “Make a payment arrangement” will appear in your account if your bill is past due.

Do Cell Phone Companies Report Your Phone Bill Payments To The Credit Bureaus In Canada?

Yes, most cell phone companies will report your cell phone payments, particularly unpaid bills, to the credit bureaus. These are the policies for the major cell phone providers in Canada:

Learn more: Does Paying Your Phone Bill Build Credit In Canada?

Who To Contact?

If you’re dealing with collections, you can contact customer support for more information: 

What Happens After A Cell Phone Bill Is In Collections?

When your cell phone account is in collections, you can expect the collection agency to:​

• Call You: You’ll likely receive calls or letters from the collection agency seeking payment.​ However, do note that they must first provide you with a written notice that includes all the collection details before they can contact you.
• Report To The Credit Bureau: When your debt is sold to a collection agency, they’ll report it to the credit bureaus, which may cause your credit score to drop significantly.
• Carry Out Legal Action: In some cases, if the debt remains unpaid, the collection agency may pursue legal action, which could lead to wage garnishment or asset seizure.​

Learn more: What Can A Collection Agency Do To Me In Canada?

What To Do Once Cell Phone Debt Is In Collections?

Once your cell phone debt has been sent to a collection agency, it is important to understand the debt collection process, your rights and options.

Here is a step-by-step guide on how to handle your cell phone debt if your account is sold to a collection agency.

Step 1. Verify The Debt Is Yours

Before negotiating or settling your bill with the collection agency, verify that the debt owed is yours. It is important to ensure the debt is actually owed by you and there isn’t any mistake.

Sometimes debts are mis-calculated, duplicated or attributed to the wrong individual. As such, it is important to understand the details of your debt and dispute anything that is factually incorrect.

Collections agencies in Canada are legally required to provide proof of the debt when requested.

Note:  A collection agency cannot contact you until it sends you a written notice that includes the details of the debt and who they are.

Step 2. Pay Your Debt

Once you’ve verified the details of your debt, contact your collection agency to discuss your options.

Most collections agencies will allow you to negotiate a lower lump-sum settlement and even offer a monthly payment plan, as they would rather work with you to recover some of the debt than receive nothing.

Here are some payment plans you can try negotiating with your collection agency:  

• If you can’t repay the full balance now, ask if you can settle 25% or 50% of the account now, and the rest in a few months.
• You can also simply request if you can repay your balance over a certain number of months.

Note. Be realistic with what you can afford. Don’t promise more than what you can afford–it makes more sense to commit to a smaller, consistent payment plan than defaulting again.

Step 3. Get Agreements In Writing

Before sending any payments, ensure you ink any deal you strike in writing and keep a copy safe. This will protect you and prevent any sort of misunderstandings later.

Ask the collection agency to send a written confirmation with the following information:

• The agreed-upon settlement amount and payment terms
• That the account will be considered paid in full once the amount is received
• Whether they will report the debt as resolved to the credit bureaus

Note. Keep a copy of all payment receipts and communications.

Step 4. Monitor Your Credit

Once you resolve your debt, ensure that your credit report reflects that. The collection account should be marked as “paid” or “settled”.

While settling your account won’t remove the negative remark from your credit report, it will show that you took responsibility and resolved the issue.

You should give around 30 to 60 days to allow the information to be processed.

Note. You can check your credit score for free from multiple sources, including the credit bureaus, banks and third-party providers like Loans Canada Compare Hub. 

How To Avoid Cell Phone Debt and Collection Issues

Dealing with a collection agency is never pleasant; as such, it’s best to be proactive to avoid such situations in the future. 

Contact Your Provider

If you’re struggling with your bills, contact your provider immediately to discuss potential solutions. Most cell phone providers, as mentioned above, offer payment arrangements for those who are unable to pay their bills. 

Similarly, most providers will send you a notice before they send your account to collections. If you receive this letter, contact your provider immediately to negotiate an alternative solution. 

Set-up Auto-Pay

Rather than tracking multiple bills and figuring out when to make each payment, set up automatic payments to avoid missing due dates. You can also set up your payments to align with paycheques. This can help you avoid any late charges and NSF fees.

Be sure to set the automatic payments a few days before the due date for processing. 

Budget Accordingly

Your cell phone bill is a recurring expense that should be properly accounted for. Ensure any new cell phone plan is well within your means.

Additional Reading

Best Ways To Save On Your Cell Phone Bill

How To Finance A Cell Phone

Can I Get Out Of My Phone Contract Early?

Bottom Line

Unpaid cell phone bills can lead to more than just service interruptions—they can damage your credit and lead to collections. It’s essential to address any payment issues promptly, communicate with your provider, and seek assistance if needed. By staying proactive, you can maintain your financial health and avoid the pitfalls of debt collection.

Unpaid Cell Phone Bill FAQs