Sorry, I had it in my head that you were from Ontario. Oops.. Unfortunately, I haven't looked in to whether or not NFLD regulations will be changing. Given that I'm from Ont., it hasn't been a high priority for me.

Isn't there supposed to be a new regulations coming in 2010 about how the credit card companies can collect their money? I am from Newfoundland.

Thank you, now I understand better.

Two things come to mind.. First, review the following thread on the "7 Biggest lies Exposed (Bill Collectors)" at:

http://www.articlesbase.com/debt-consolidation-articles/bill-collectors-the-7-biggest-lies-exposed-554932.html

Second, should this firm opt to initiate legal action, to comply with the Ontario Courts of Justice Act both parties will first partake in mandatory mediation process. See link below for additional information on the subject. That said, if you were ever to make it to the mediation process, you'll have an opportunity to present your offer, as well as a payment strategy to address the balance.

http://www.e-laws.gov.on.ca/html/regs/english/elaws_regs_900194_e.htm#sched24.1.01

RULE 24.1 MANDATORY MEDIATION

PURPOSE

24.1.01 This Rule provides for mandatory mediation in case managed actions, in order to reduce cost and delay in litigation and facilitate the early and fair resolution of disputes. O. Reg. 453/98, s. 1; O. Reg. 198/05, s. 2.
Note: On January 1, 2010, rule 24.1.01 is amended by striking out “in case managed actions” and substituting “in specified actions”. See: O. Reg. 438/08, ss. 15, 68 (1).

NATURE OF MEDIATION

24.1.02 In mediation, a neutral third party facilitates communication among the parties to a dispute, to assist them in reaching a mutually acceptable resolution. O. Reg. 453/98, s. 1.

Yup, It was a call from some Mr Sargaent from a Law firm and they are threatening to hold my paycheques if I do not show up in court. Can they do that?! He wants the full payment of 332.01$ in full and I am not willing to pay that kind of money for an outstanding loan of 50$! They also said that the payday company is suing me for a 1000$, so if I don't pay the 332.01, I'll have to end up paying a 1000$ in court and such.

So the $50 outstanding was 10 months ago? So they're technically charging you 800% annually in interest which is against the criminal code. Call their bluff and tell them you'll report them to the police for extortion. I highly doubt they will put someone to court for a merely $350.

I have run into a crazy problem with this company, against my better knowledge I used them to borrow some amount of money 10 months ago, since my financial situation at that point wasn't too good I had 50 bucks outstanding and I moved, now they have got some lawyers contacting me, threatening a lawsuit and are threatening to block my paycheques if I don't pay them some 350 bucks [7 times!] the amount by tomorrow morning 10 am. What are my options at this point, I would like to avoid the court hassle, but more than that, I would like to avoid such a huge overpayment! All help will be very much appreciated. Many thanks!