The most important issue is the settlement ratio. Generally banks sell them off within a year or two, though some, like TD, often wait much longer. Still, others (BMO) may never sell them, in which case it will be harder to get a low percentage.

The conversation was quite extensive and involved many topics, some of it was personal. Mostly it had to do with the SOL, and a gaping hole in the laws regulating collection agencies. I need to clarify a few points and I'll post what I learned at a future date.

pls explain what they clarified.
Specifically with regards to the law and statutes you speak of.

Actually I've entered into the first phase of negotiations with the collection agency to settle the debt (the debt has not been sold). During the process I've received very valuable help from The Ministry of Consumer Affairs. They've answered many of my questions and clarified areas of the law and statutes for me. I would recommend to anyone that they should be the first people you call with your questions. Thanks for your help and advice. I'll keep you posted as things progress.

If you're comfortable saying who the creditor is, me one of us might be able to give you an idea of what agency it would go to if it were to be sold...Activ Kapital sees a lot of MBNA account, for example, and Metro Credit gets a lot of Canadian Tire paper, etc....

If it's still with the bank, they won't settle for any less than 50% to 80%. Perhaps they'll sell it to a debt buyer like Aktiv Kapital who will likely settle for less.

Hello,

I have an unsecured debt which I would like to settle. I have sought the advice of numerous other so-called experts in this area (A bankruptcy specialist, a settlement company and a lawyer) but none of them were able to offer the kind of advice or help I was looking for.

The debt is with a bank credit card in the amount of approximately $9000.00. The debt has been in default for 4 years (2 years statute barred) and has been through 8 collection agencies with no legal action taken against me, the most recent of which, we'll call them ABC Collections, contacted me by phone on December 19 2012. Since they contacted me by phone without first sending me written notice of the debt I filed a complaint with the Ministry of Consumer Affairs. Although the collection agency claims to have sent me written notices of the debt, I have never received any written communication from them. ABC Collections has not made any attempt to contact me either by letter or by phone since December 19 2012.

I would like to settle the debt for around 15% of the debt or around $1300.00. Is this a reasonable/fair offer considering the circumstances surrounding the debt? I would also like advice on how to approach the collection agency with this offer.

Thanks in advance.