Aktiv Kapital is very well aware that your debt is statute-barred as well as the vast majority of debts that they purchase. So you don't have to worry about Aktiv Kapital showing up anytime soon with a "Statement of Claim". By far, the vast majority of debts sold by a creditor to a debt buyer are statute-barred. Otherwise, why would a creditor sell a debt that was not statute-barred when they could sue the debtor and obtain a judgment? Most creditors will sell a debt when it's statute-barred, below a certain "cut-of" level, the debtor is "judgment proof" ( in receipt of income that is not subject to garnishment ) or has insufficient assets to which they can attach a "Writ of Seizure and Sale".

<<< Still why are Debt Purchasers any different from a "collection agency"? >>>

That seems like a silly statement to make. That's like saying "Why is a self-employed person any different than an employee"? The difference is one person owns the business while the other person is an employee of the business.

Oh, and by the way, I'm currently not an employee of Aktiv Kapital or have I ever been an employee of Aktiv Kapital. My only qualification for being on this forum is my 50+ years as a businessman, lecturer and university professor together with spending several years in the Small Claims Court and Superior Court of Justice systems. I hope that during that period of time that I have learned a thing or three about how business operates both from the practical as well as the legal side.

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Educating one Consumer at a time

Wow very informative!

How would I be playing hardball? If they are above these laws they would take me to court for said monies owed to them. There is only one problem with that. They don't have a leg to stand on in court and can't even produce the original signed agreement or any statements of moneys borrowed or owed! No Proof and the judge will laugh them out of court.

Still why are Debt Puchasers any different from a "collection agency"? Effectively they are "collecting a debt in default". All this seems to be is a loophole in the law that is being exploited by Aktiv Kapital as they were a collection agency a few years ago and have since changed to an "acquisitions" firm which is apparently above the laws ( Collection Agencies Act) designed to protect the consumers of this great country. And the government allows it!!!! Thanks CANADA your the best!!!!!!

Just a thought? Footloose it seems you may work for Aktiv Kapital.

If I purchase a car from an Ontario licensed automobile dealership and later sell it to my neighbour, am I subject to the provisions of the Ontario Motor Vehicles Dealers Act administered by the Ministry of Consumer Services? Well, of course not. Then, why is a debt buyer who purchases a debt from a bank subject to the provisions of the Federal Bank Act?

When I make an application for a credit card to a credit grantor, and if the application is accepted, the credit grantor will send me by mail, a credit card and a "Cardholder's Agreement". The "Cardholder's Agreement" spells out in detail the terms and conditions under which I agree with BEFORE I activate the credit card ( which nobody reads anyway and then bitches and complains like Hell when their account goes into default and the credit grantor either assigns the account to a collection agency to collect or sells the account to a debt buyer and then tries every trick in the book to WEASEL out from honouring their financial obligation). These "Cardholder's Agreements" are drafted by lawyers who specialize in Contract Law and cover every aspect of the loaning of money. In fact, they are so tight, they are "tighter than a frog's ass, and that's watertight".

In every "Cardholder's Agreement", there is an ASSIGNMENT clause which reads something like this:

We may, at any time, without notice to or authorization from you, sell, transfer or assign any or all of our rights under this Agreement. If we do so, we can share information concerning your account with prospective purchasers, transferees or assignees. In any such case, we will ensure that they are bound to respect your privacy rights in the same way that we do.

If you borrow money from a financial institution such as a bank, credit union or caisses populaire, finance company or a payday loan company, you will receive full disclosure and documentation. Unfortunately, most people don't read this documentation and understand it before they get into financial difficulty.

If a creditor assigns ( not sells ) a debt to a collection agency, the collection agency acts as an agent for the assignor ( creditor ). Under the law of agency, the assignee ( collection agency ) represents the rights and obligations of the assignor ( creditor ) If a creditor sells ( not assigns ) a debt to a purchaser, the debt buyer DOES NOT assume the rights and obligations of the seller. Therefore, any contracts or agreements that the creditor had with the debtor DOES NOT flow through to the purchaser.

If Aktiv Kapital believes that you are playing "hardball" with them and depending on the amount of the debt, they can literally "bring you to your knees" and devastate your Credit Score by doing as many "hard pulls" as they wish providing they are willing to pay the fee for each inquiry.

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Educating one Consumer at a time

Smoke14 I'm not saying the Bank Act applies to them, I'm just asking if thats the case.

Thanks for the great info!

Now If the bank act applies to them and they purchased the debt does that mean that I have no legal obligation to pay them as I never signed an agreement with the new company?

Also It is 12 years old so I know that they have no legal leg to stand on in court as it is stats barred. But they tell me that they can ruin my credit score by doing searches every 6 months?

Thanks for the help everyone.

Learn something every day on here, great info.
Question on the issue raised by smoke14, are they regulated at all?
If they are treated the same as the original creditor would that mean as an example that the Bank Act would apply to them if the debt was originally owned by a Bank?

The Ontario Collection Agencies Act together with its related Regulations provides the "rules" under which individuals and corporations more commonly referred to as "collectors" and "collection agencies" may act while providing "collection services" on behalf of third parties. Section 2 of the Act provides a list of individuals and corporations who collect money on behalf of third parties but who are exempt from the provisions of the Act and its Regulations.

Aktiv Kapital is NOT a collection agency. They are the largest DEBT BUYER in Canada. They DO NOT provide "collection services" for third parties. They are treated the same as an original creditor attempting to collect a debt that is owed to them. However, in this case, they have purchased the debt from the original creditor, therefore, they now stand in the "shoes" of the original creditor. As a result, the Ontario Collection Agencies Act and its Regulations have NO application to Aktiv Kapital.

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Educating one Consumer at a time

Their previous name was Portfolio Management and has since been bought out by Aktiv Kapital. I believe now they are a debt purchasing company or something else and they might not be governed by the collection agencies act. If I’m wrong someone on here will correct.

Why is Aktiv Kapital not governed by the Collection Agencies Act?

If you look at the Definition in the act it reads:

Definitions

1. (1) In this Act,

“collection agency” means a person other than a collector who obtains or arranges for payment of money owing to another person, or who holds out to the public as providing such a service or any person who sells or offers to sell forms or letters represented to be a collection system or scheme; (“agence de recouvrement”)

“collector” means a person employed, appointed or authorized by a collection agency to collect debts for the agency or to deal with or trace debtors for the agency; (“agent de recouvrement”)

This clearly shows they are obligated to follow the collections act doesn't it?

If not who regulates them?