Hi All,

I am new to Canada. I recently received a mail from a collection agency working for Forbes Motor, waterloo. They had stated that I have a pending account of ------- $. They had also stated the company had made several attempts for me to settle it.

Those facts weren't true. My trouble started when I tried buying a new car from them. The agreement did not come through. But they still held on to my deposit 500 $and wouldn't return the same.

I asked the collection agent about the details for this transaction. He said that there was a damage done to loaner car and they are trying to recover the same. They had not sent me any mails regarding the damage or the value or when the damage occured.

I don't want my credit to be ruined in Canada. Can anyone suggest that what would be the better way to handle this. They are proceeding unilaterally. I have never agreed to pay any money or I don't have any contract with them. How come they are sending me collection letters?

The collection agent was rude and I said I am going to contest this, he says 'who is a lawyer?'. He also threatened saying that I have no chance of winning a case and end up paying much more than what is due because of the legal cost.

Is this true? Do big companies always have enough muscle power to just pry any amount they can from an individual? Do we have enough rules to protect the customer. They have a grudge since I found a better deal with their rivals and decided to complain against them for my deposit.

Please advice.

Thanks,

Naresh