Collection Agencies - Statue of Limitations being reinstated. - Canada

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RE: Statue of Limitations being reinstated.

Postby Jigglypuff » Thu May 31, 2012 01:14:45 AM

Thank you for the responses.

Thanks for also clarifying the SOL for me. I feel more at eased now that I don't have to worry about the SOL being restarted by talking to them. When they threatened me with a lawsuit I was really disheartened. I thought I was completely screwed. I couldn't sleep or eat. However, I now realized it's one of their tactics to get me to pay. I think I will take the advice and wait for the Notice of Claim. Hopefully my SOL will run out before that.
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RE: Statue of Limitations being reinstated.

Postby footloose » Wed May 30, 2012 07:33:14 AM

Unfortunately, you are so terribly misinformed about both the Ontario Limitations Act, 2002 and the B.C. Limitations Act that some of your comments are a disgrace and an embarrassment to this forum. It is quite evident that you have never taken the time to read and study these Limitation Acts, otherwise you would not have made such "assinine" comments. Remember, tis better to be thought a fool than to post on this forum and prove it.

For starters, admitting to a debt verbally on a recorded phone call is NOT an acknowledgement of a debt. Pursuant to Subsection 13(10) of the Ontario Limitations Act, 2002 and Subsection 5(5) of the B.C. Limitation Act, an acknowledgement of a debt must be in writing and signed by the debtor.

Quote "The debt will stay on your credit bureau for 6 year less a day from the last payment as well". ABSOLUTELY FALSE. All accounts are purged 6 years from the Original Date of Default with the Original Creditor.

Quote "The holding party also has only 2 years from last payment to sue". ABSOLUTELY FALSE Pursuant to Section 4 of the Ontario Limitations Act, 2002, no proceeding shall be commenced in respect of a claim after the second anniversary of the day on which the claim was discovered.

Quote "...yes it will be on your bureau 6 years less a day from when you settle" ABSOLUTELY FALSE The account is purged 6 years from the Original Date of Default with the Original Creditor. It matters not when, if ever, a debtor settles the account.

Quote "...it doesn't get extinguished or disappear forever they retain the right to at least collect" ABSOLUTELY FALSE Pursuant tp Subsection 9(1) of the B.C. Limitation Act, the Cause of Action is extinguished after 6 years. That means that the debt no longer exists, consequently, a creditor is prevented from attempting to collect on this debt and is prevented from making any inquiries to a credit bureau regarding this debt.

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Educating one Consumer a a time

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RE: Statue of Limitations being reinstated.

Postby TJ.brooks » Tue May 29, 2012 08:24:45 PM

First off a oral acknowledgment, wether recorded or not is not an acknowlement. Please provide section of act that says it is.

Second in BC and NFLD the debt is extinguished after 6 years and it is infact illegal to try and collect.

Third,no where in CANADA IS IT ILLEGAL TO THREATEN A LAWSUIT.

Please research your advise before misinforming people who come here to gain some knowledge.
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RE: Statue of Limitations being reinstated.

Postby Jandrood » Tue May 29, 2012 08:06:38 PM

The party holding the debt can sue if you admit to the debt by:

A) Admitting to it verbally on a recorded phone call

or

B)Making a payment on the debt(even if its $1)

The debt will stay on your credit bureau for 6 year less a day from the last payment as well.

The holding party also only has 2 years from last payment to sue.

Also while they could sue, realistically if you were going to be sued it would have been long before the sol expired in the first place.

Oh and fyi it is illegal to threaten legal in an attempt to collect a debt; you can only say you will sue if you really mean to go through with proceeding which i very very highly doubt they will do.

There is no way you are being sued for this, it is a scare tactic call them on it and let them know you know the law in BC.

Not to say it isn't worth settling the debt; yes it will be on your bureau 6 years less a day from when you settle but even if you wait the full 6 years and do nothing until it falls off so long and someone holds the debt they have the right to call you forever until it is paid (it doesn't get extinguished or disappear forever they retain the right to at least attempt to collect) and they can still put inquires on you once every 3 months forever which will lower your beacon score every-time they do.

Also once you die the debt would come out of your estate and be a big hassle for your children.

Some more info on what kind of debt and how old it is would help as well.
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RE: Statue of Limitations being reinstated.

Postby footloose » Mon May 28, 2012 05:13:43 PM

In B.C., the Statute of Limitations is 6 years for all commercial debts such as a defaulted credit card. Unlike all other Provinces and Territories with the exception of Newfoundland, under the Limitation Act, ( RSBC 1996 ) CHAPTER 266, and pursuant to Subsection 9(1), not only does the limitation period expire in 6 years but so also does the CAUSE OF ACTION.

What this means in Layman's Language is that after 6 years, not only is a creditor prevented from commencing a legal action to sue you but the debt is deemed to be extinguished. The Cause of Action relates to an activity or event such as a default on a credit card which would then provide the creditor to legally proceed to obtain a judgment.

Under the B.C. Limitations Act, you can only acknowledge a debt and thereby restart a new limitation period by either making a part payment on the debt or by giving a written acknowledgement of the debt and signed by you providing it is done WITHIN THE LIMITATION PERIOD.. Any acknowledgment of a debt BEYOND A LIMITATION PERIOD will NOT restart a new limitation period. Accordingly, any ORAL acknowledgement of a debt does NOT constitute an acknowedgement of a debt and thereby does not restart a new limitation period.

My suggestion to you is to let "sleeping dogs lie". Do not contact the credit card creditor. In the event that you are served with a "Notice of Claim", in your Defence, you can then propose an offer to settle. If you do not receive the "Notice of Claim" before the expiration of the Statute of Limiitations, then this debt will be extinguished.

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Statue of Limitations being reinstated.

Postby Jigglypuff » Mon May 28, 2012 02:48:49 PM

Just a question on how Statue of Limitations works.

I understand that if I don't made any payments and made no written/signed acknowledgments of my debts than my SOL won't be restarted.

However, I want to call the collection agency and negotiate a deal to end this debt. Since I will be talking to them to negotiate this deal. I will be indicating that this debt is mine. Trying to negotiate by just talking to them over the phone, does this restart my SOL?

(FYI: credit card debt. 6 more months until it's passed the SOL.
The reason I want to negotiate a settlement is because they have threaten to sue me.)

Any help would be appreciated.
Thank you!
Jigglypuff
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Joined: Fri Apr 20, 2012 12:20:47 PM
Province: BC


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