Maybe by definition the entry has to come off one's report if a contract cannot be found, but in reality, who is a Credit Bureau going to side with? The little guy who can make a case, or the banks that shell out heaps of cash every year to Equifax and T/U?

Perhaps I'll take on that challenge in the future? Right now I'm testing out strategies formed from a different piece of legislation, so I'm not eager to slap too much weight onto my thin ice quite yet. Though I must admit that in a devious sort of way this exercise is becoming very amusing. Hammering the sharks (as Raymond would put it) is therapeutic after enduring all their B/S over the years.

lol...
if they can't find the original agreement, then that debt is not verifiable... by definition.... which means it has to come off your credit report.

Something tells me that they have that contracts on a micro fiche or hard drive some where

that's an interesting exercise though... thanks for sharing that... MORE PEOPLE NEED TO ASK FOR THEIR RECORDS!!

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Interesting.. Here's a little side note.. I hit two creditors a couple months ago with a request for my personal info on file, citing PIPEDA as the vehicle for my request.

Anyway, within the 30 days, I received the data requested; in fact, quite a bit from one creditor - contained all call log/notes, etc., from the agencies they had assigned the debt to. That said, neither of the packages I received contained a copy of the original contract, AND, since my requests, I have yet to receive a call in regards to either of the accounts.

It'll be interesting to see how this plays out. Both accounts are passed the S.O.L. Perhaps the creditors, knowing that they [presumably – giving benefit of doubt here] couldn't locate an original contract, will opt to settle for peanuts or sell the accounts entirely?

Regardless, it's a breath of fresh air to be aware of what tools are at one's disposal when attempting to turn the tables in one's favor.

Yes, you need the agreement, signature and statements showing the loan history.

This is assuming you are sued and then file a defense. The creditor would have to provide those three items. Especially when it is a mailed in pre-approved signature to an agreement that is on a completely different page, those are the most common ones that go missing with creditors.

I've seen creditors send pre-approved cards without the person signing or applying for it, during the credit give away frenzy banks/cc companies would sometimes approve by phone.

I could see a bank loosing the original credit contract/application, especially when the contract was signed several years ago - or, if a bank purchased another bank; in that case it might get tricky for the new bank to locate this type of paperwork.

That said, surely the original contract isn't all that's needed to prove someone owes a debt? After all, they'll have copies of statements with payment histories, etc.. With those in hand, a link back to the debtor could be formed - especially if one was using an online payment service. One thing I could see being sketchy to prove in such a case would be the (original) terms of any agreement.

I would only reiterate what RichardC said here, it's pretty spot on. You won't get out of the interest if the creditor wants to have it paid, I was only clarifying that it isn't the agency charging interest it is the creditor.

If you're looking for valid disputes to a collection recovery go with asking for the contract with your original signature. Sometimes the banks lose them, it's rather surprising but it does happen.

All creditors have the right to accumulate interest at any stage of the collection cycle, and the majority do when the debt gets assigned to a 3rd party.

Some creditors, as Joe pointed out, have chosen to freeze interest when they assign it to collection agencies. But that’s not out of any collection act or law, its more a gesture of good will by that creditor. But again very few creditors follow that practice. They are profit centers with shareholders to impress, interest is what lenders are all about.

The provincial collection acts just speak to the subject of the collection agencies collecting more then they are allowed to, meaning extra made up fees over and above the principal/interest. The collection act's do not govern the interest the debtor agreed to pay its creditor.

I noticed some of the collection agencies were adding interest and others were not on my debts. Here is a link listed below to the consumer affairs site for Nova Scotia, and it states that collection agencies are not allowed to collect more then what is owed to the creditor.

http://www.gov.ns.ca/snsmr/consumer/collect.asp

nameuser,

So your answer is 'Yes they can', not 'No', correct?

For a while now I've been searching the net for some official law that would add clairity to this question, but have to come across one after all of my research to date. That said, if you by chance know of a legal statute that covers this one, please pass it along. Thanks.

O.C.

Can a collection agency continue to collect interest on a written off account?

No. The original creditor will have it in there agreement you signed that they can continue the interest after you have defaulted on the payment arrangement. This is standard for all loan and financing contracts.