Collection Agencies - Repo - Canada

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RE: Repo

Postby jc2004x » Thu Feb 24, 2011 05:00:05 AM

I had actually meant close the current TD cequing account and open a new TD chequing account....But I am guessing they would be able to take money out of the new account
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RE: Repo

Postby footloose » Wed Feb 23, 2011 12:51:55 PM

If you have funds on deposit in an bank account ( whether it be a savings account or a chequing account ) and you have obtained a loan ( whether it is secured or unsecured ) from that same bank ( not necessarily the same branch ) and you default on the loan, and the bank chooses to seize the asset for which the loan was made, the bank can exercise their "right of set-off". This is a legal principle which is used all the time. In simple layman's language, it means that if a creditor owes money to a debtor and the debtor owes money to a creditor, the creditor can offset the money it owes the debtor by deducting or withholding money that the debtort owes the creditor..

Let's say, for example, that you defaulted on a student loan and you owe the Government of Canada $5,000. You file your personal income tax return and are claiming a tax refund of $1,000. The Canada Revenue Agency acting in the capacity as Agent for the Government of Canada will deduct your income tax refund from the amount of your defaulted student loan leaving a balance owing to the Government of Canada of $4,000. The Government of Canada is NOT suing you but exercising their "right of set-off".

If you have funds in a bank account at the TD bank, at any branch anywhere in Canada and you owe money to the TD bank, the bank can exercise it's "right of set-off" and seize those funds. However, if you close your account at the TD bank and transfer those funds to an account at the Royal Bank, the TD bank CANNOT seize these funds because the TD bank does not owe you any money. The Royal Bank owes you money, therefore the TD bank CANNOT exercise their "right of set-off".

Please see my blog on January 6, 2011 where I explain it again.

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Educating one Consumer at a time.
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RE: Repo

Postby jc2004x » Wed Feb 23, 2011 06:47:43 AM

Another thing I am wondering....If I close my current TD account, and open a new one after a month or two, can they take money out of the new account?
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RE: Repo

Postby jc2004x » Thu Jan 06, 2011 07:57:09 PM

Ok. To be clear the loan was not made in october. This is when the vehicle was repo'd. The loan was done in may 2007. I actually haven't been putting money into my chequing account. I logged in to online banking to check the balance of my credit card and RDSP. That is when I discovered that my cequing account had a balance of $50. When I clicked and brought up my account history, I noticed that my GST had gone in the night before. This is how I learned that they had taken some money. they took just over $101 from my GST being deposited but left the account with a balance of $50. And yes I understand that they cannont sue, but someone was telling me that they can't take money from my account either. This is what I was trying to check.
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RE: Repo

Postby footloose » Thu Jan 06, 2011 01:15:28 PM

This is a classic example of what NOT TO DO. When you obtained your car loan from TD Canada Trust in October and if you had a bank account at the same bank ( not necessarily the same branch ), you should have immediately closed the account and opened another bank account at a different bank ( not a different branch ). If your loan payments were charged to your bank account, no bank or financial institution can demand where you keep your bank account, just so long as they have a bank account that they can withdraw funds. As long as you maintain your bank account at the same bank ( not necessarily the same branch ), they retain the right to apply any funds remaining in your account to the unpaid portion of the loan EVEN AFTER THE CAR IS REPODED. In B.C., the law is quite clear. Either REPOI and not SUE or SUE and not REPO, but they can't do both. Taking money out of your bank account is not suing even after they have REPOED the car.

The lesson to be learned here is this. Whenever you obtain a loan, line of credit or mortgage from a financial institution, NEVER, NEVER, NEVER keep a bank account at the same institution. Unfortunately, you have learned your lesson the hard way.
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RE: Repo

Postby jc2004x » Thu Jan 06, 2011 07:49:50 AM

My vehicle was repo'd in BC under a loan done in BC in October. Yesterday the bank took $101 from my chequing account and put it toward the loan. As I understand this is not legal. Am I correct? To be clear the loan was done in Coquitlam BC the vehicle was repo'd in Delta BC and the Loan was through TD Canada Trust
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RE: Repo

Postby nameuser » Wed Sep 29, 2010 08:22:17 PM

roadman is correct - it's seize or sue in BC. Doesn't matter which province the contract was signed in, the creditor is recovering from a debtor residing in BC, so they have to follow BC laws for recovery.

You'd be surprised how many times they don't seize cars if the value isn't there.

The creditor will tell the bailiff to pick up the vehicle if it 'appears' to have a value of at least X amount (depending on the outstanding loan amount). If the value isn't there they will usually take a picture and send them the bill saying they didn't pickup.

Then it will sit with a collection agency for awhile. Maybe they will actually sue, but they usually want a property or employment info on you to go that route.
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RE: Repo

Postby footloose » Wed Sep 29, 2010 06:27:47 PM

Was this car loan made and the agreement signed in Ontario? If the answer is "yes", then the laws of Ontario will govern your situation regardless of the territorial jurisdiction in which you are residing ( i.e. B.C. ). Otherwise, it would be too easy to circumvent the law of the territorial jurisdiction in which the contract was made by moving to a territorial jurisdiction that did not recognize the laws of the original jurisdiction.

In reading your original thread, it appeared to me that you were residing in Ontario when this deal was made and subsequently moved to B.C. Am I correct in this assumption? If so, the laws of Ontario apply. If my assumption is wrong, please provide more details surrounding the application and subsequent approval of this loan.
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RE: Repo

Postby roadman » Wed Sep 29, 2010 10:22:28 AM

I spoke with a bankruptcy trustee that said it does not matter where the loan is from. I live in BC and the law in BC is seize or sue. Ask a trustee!
In ontario they can do both but not BC
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RE: Repo

Postby footloose » Tue Sep 28, 2010 10:34:51 PM

This is a secured car loan and VFC have registered a lien against the car. If the contract says that VFC can seize and sue, what this means is that if they had to Repo the car for your failure to make the agreed payments and they sold the car at a public auction ( which is usually what happens in a repossession ) and the sale price is less than the amount owing under the contract, they can sue you for the difference. Even though the car is physically in B.C., that would not prevent them from seizing the car and selling it ( in all likelihood ) in B.C. Why would they waste their time chasing you for the unpaid balance when they can seize the car and realize their lien on the car? I find it difficult to believe that in B.C, that an auto loan lender can only seize or sue but not both. What am I missing?
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