Collection Agencies - How Do Statutes of Limitations Work - Canada

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RE: How Do Statutes of Limitations Work

Postby Ottawa_Chap » Sat Sep 05, 2009 08:07:38 PM

"If you'd rather have letters, then the next time they call, tell them you want them to stop calling you, and to contact you in writing instead. Then give them your address. If they don't comply with this, report them. (If you can, record your conversations with them.)"

That will do a person little good. Unfortunately, the vultures will fall to the floor laughing at that verbal request. If one wants the phone calls to stop, either fax or send via registered mail, a tactfully worded Cease and Desist letter. As an example, here's one that I've sucessfully used - though keep in mind it's geared for Ontario..

[Begin]

{Insert all relevant header formatting... Date line, address info, subject, reference #, etc..}

Pursuant to my rights under the Collection Agencies Act, R.S.O 1990, I am requesting that your office staff and any of its affiliates, cease and desist all attempts to communicate with any 3rd party (eg. my Family, Friends and/or Associates, etc.) with respect to [File #]; this is in addition to limiting any future communication with myself to regular postal mail.

Furthermore, your office has yet to supply me with documentation supporting proof of this alleged debt; therefore, I dispute the debt in question and feel that it would be beneficial to all parties if your client would initiate legal proceedings. Should your client wish to discuss the matter with me before filing a suit, have a member of THEIR office contact me directly.

{Print Name - Do not sign; this is not required}

[End]

Notice how I used the wording "Alleged debt" ... It's VERY important to refrain from acknowledging the debt in writting. Good Luck!
Infuriating one C/A at a time..
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RE: How Do Statutes of Limitations Work

Postby bluetoes » Sat Sep 05, 2009 05:16:09 PM

"....I get the phone calls. Never a letter but lots of phone calls."

If you'd rather have letters, then the next time they call, tell them you want them to stop calling you, and to contact you in writing instead. Then give them your address. If they don't comply with this, report them. (If you can, record your conversations with them.)

You might be able to get them to agree (in writing, of course) to remove the entry on your credit record, if you make whatever part payment you can negotiate with them. Since this debt is very old, I would think $1500 would be a reasonable sum to make this all go away. Of course, collectors who think they can charge you interest don't exactly qualify as 'reasonable'...

The SOL in BC is 6 years. If that's where this started, then you should just about be in the clear. Note that the debt doesn't go away because the six year period has run out.

As far as repaying the principal in a few payments, as you said you originally wanted to do, if I recall correctly if someone makes a payment of any amount and the creditor takes it (cashes the cheque, whatever) then they basically have agreed to those terms. Used to be that if you paid a small amount, and they took it, then you could go on paying that amount. Doesn't do you much good now, of course.

Next time you call, ask them if they have indeed bought your debt. If not, or they won't tell you, you could always try to contact the original creditor and see if they will take 50%. I think that if you go into negotiation with that creditor, the collection agency has to stop contacting you, period.

(BTW, I'm assuming here that this is a credit card, and not some other type of loan.)
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RE: How Do Statutes of Limitations Work

Postby PartyOfTheFirstPart » Sat Sep 05, 2009 10:48:00 AM

If that's the case on the interest they would have been paid a long time ago.

I would have been able to pay the principal in a few payments which I offered to do, but they insisted on payment in full only.

If I had known about this site back when the debt was in manageable numbers I never would have defaulted.

I know some say thay people take on debt with no intention of repayment but if that's the case why were my payments on time.

I had loans in the six figure amount that I paid back on time and to the penny.

I had/have many sleeplesss nights worrying about debt.

It's not a good feeling when you see all you worked for going down the tubes.

All I wanted was a little slack but all I got was cursed out by some collectors, but there were some good one's that worked with me and I settled with them some for about 70 cents on the dollar. They were true to their word and faxed me agreements and all showed up on the credit bureau as settled.

I would love to settle all even now but when the interest is 6 times the principal, it is impossible.

We all like to think we're in good health and immortal and I thought I was until I got out of bed one morning to go to work and found out different.

I've had months where I can't buy medication that I have to have but can't afford it so I've just crossed my fingers and gone without.

I only have this one debt that I can't do anything about.

I don't want to talk to any collector about it because it might be out of the statute. I'm sure they know the answer to that but I don't .so I get the phone calls. Never a letter but lots of phone calls.

I'm thankful for all the answers that have been posted.

I don't understand where collection agencies have the right or assume they have the right to assign 30 percent interest to a debt that they purchased if that's what they did.

If I were somehow able to even pay them I still would be all messed up because then it would be on the credit bureaus for another six ( seven ? ) years.
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RE: How Do Statutes of Limitations Work

Postby bluetoes » Fri Sep 04, 2009 08:40:56 PM

The SOL begins to run when the creditor first discovers their economic 'injury'. That would be when they told you you were in arrears, and presumably cancelled your credit card.

As far as I know, a collection agency is not allowed to collect, or try to collect, more from you than the original debt; that is, where it stood when your card was cancelled, so $3100.

Here's a thread on this topic: negotiating your payment (what percent of the original amount you can/will pay them).

/threadview/2020.html

The following is a US site for collection agents and agencies, but it's an eye-opener regarding debt purchase by collection agencies. Take note of how little they pay for debt. There is a section where they post debt portfolios for sale, with the asking price (currently going for around half a cent or less on the dollar). Interesting forum also, with both consumers and collectors posting.

http://www.insidearm.com/

I would think that your debt was indeed purchased outright. I doubt that the original creditor would wait around for six years for the collection agency to get around to finally doing some work.
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RE: How Do Statutes of Limitations Work

Postby Ottawa_Chap » Sun Aug 30, 2009 08:58:03 AM

My understanding is that the limitation period begins in the province where the debt had defaulted in. Will need to review my notes to validate this theory, but that's what I'm running with for the time being. Perhaps either Equifax or Trans Uninon could answer this question if posed?

Simply ask the collection agency if they purchased the debt, or if the debt was assigned.. Easiest way to have that question answered...

Correct, at least in Ontario, C/A's are required to issue the 'client' a letter outlining the debt and their involvement within the collection process, before making contact with the debtor.

C/A's are keen to collect the $$ as soon as possible, so the longer they wait to collect it, the less chance they have in receiving their commission's as delinquent accounts are routinely passed around between agencies. Therefore, leaving it down to the wire reduces their odds of collecting on the debt.

That's my early morning dribble on the subject anyway..
Infuriating one C/A at a time..
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RE: How Do Statutes of Limitations Work

Postby PartyOfTheFirstPart » Fri Aug 28, 2009 06:24:35 PM

I still can't seem to figure out how the statute of limitations works on a credit card debt , whether the statutory time is determined by the laws of the province where the card was issued and granted or by the present province of residence.

How is it possible to tell whether a collection agency is acting on behalf of a creditor or whether they have purchased the debt themselves.

If the debt has been passed on to another agency how does one tell without it being on a credit report.

I see from many posts here that collectors are supposed to write the client ( it just feels better if I consider myself a client, it's a more user friendly term ) if an account comes into their possession.

I'm thinking that if a debt was not out of statute it would be likely that they would just sit back and let high interest accrue.

I've only had one address change in 28 years and Canada Post still comes by so I'm thinking nobody wants to write letters anymore.

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RE: How Do Statutes of Limitations Work

Postby Ottawa_Chap » Fri Aug 28, 2009 09:54:08 AM

Regarding the C/A's adjusting the Date of Last activity..

An in depth discussion on the topic can be found on this thread:

/threadview/1415.html
Infuriating one C/A at a time..
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RE: How Do Statutes of Limitations Work

Postby bullring » Thu Aug 27, 2009 05:54:31 PM

It was in 2007. The one account is accurate. But, the new one, that says I last made a payment in April 09, does not make any sense, and I don't know where it came from.

I was ready to call the original collection agency that had it and square it all away, but since it went to a 2nd collection agency it knocked my rating so much I felt defeated.
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RE: How Do Statutes of Limitations Work

Postby average_joe » Thu Aug 27, 2009 06:54:41 AM

Bullring,

When was the last time you made a payment on your Rogers account? If you know, then that will be your last date of last activity that should be showing in your credit file.

Cheers
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RE: How Do Statutes of Limitations Work

Postby average_joe » Thu Aug 27, 2009 06:44:02 AM

The collection agencies are manipulating the dates of last activities, so the item will remain on your credit file for another six years

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