I see what you're saying Perplexed but my debt was not accumulated through credit card spending. I co signed a loan for a family member. That person got into financial trouble and was not able to pay their outstanding bill which is why the low life's are coming after me. Lesson learned..

Alexisyvr...thanks for your advice as well. I hope you're right. The thing is we're not disputing the amount owing ( thankfully less than $5000... it's $2200) we're trying to work out a payment plan long enough till my family member can just pay the damn thing off but the collection agency will not hear of any piddly payments which was why he laughed and said he'll see me in court. Nice guy, eh? Not much more I can do.

Oh, and one more thing. I also believe that credit companies could be a bit more responsible who and how they hand cards out. There should be a limit. Nobody makes enough money to have ten, twelve, sixteen cards. Many people have those amounts of cards. Consumers live from card to card. The credit companies should stagger handing out cards. If they know that a mediocre salaried person has five cards already say no to the credit application. This method would make our country stronger and wealthier instead of having all these companies use the bad debt as a write off so they don't have to pay all their taxes. Perhaps this thought is a bit ridiculous but it is a thought. Just ask all the people who now owe thousands of dollars and cannot keep up with the payments. Doesn't feel so good anymore does it?

Unfortunately, everyone has sort of the right idea regarding debts but everyone sort of has the wrong idea as well. Sure, why would the "bottom feeders" bother taking an individual to court to take a small amount of money from the debtor? I will tell you why. These BF"s buy the debt, allow it to build with added interest (the interest that was agreed upon between the creditor and the debtor) and then when it has reached a maximum amount a couple of years later they hit you between the eyes. The debt now has reached a very desirable amount and if they serve you or they do not serve you is of no consequence if the debtor cannot prove that the debtor has not been served. (how can she/he going to prove not being served?) Default judgment happens and good luck after that. If you have a home or any other reasonable asset they have you by the B....s. They can get a writ of seizure on your property before you even get to court with your notice of motion and affidavit and they can let it ride if they so choose until the day you decide to sell. At that point you must pay them out or else you cannot sell your home. By that point the debt has grown like no tomorrow. Now, they can ask for the newly accumulated debt, all of it. What prevents them from doing so? After all they were not challenged before the default judgment. Also at this point garnishment of wages can happen as well. The only hope in Hell a debtor has is if the judge happens to believe the story that the debtor did not get served. This is the weakness I see in our system. Actually two weaknesses. First, any debtor can be served by ordinary mail. The collector swears up and down that they actually sent you the mail. Well, we all know that things actually do get lost in the mail, get delivered elsewhere etc etc. If the government knows that there are such weaknesses why would our government not set up a full proof delivery of important documents and require that a signature is obtained from the debtor or anyone else in the household for receiving the documents? This way there would be little doubt at court time. The reason, we are told is that the debtor must swear to God that he /she is telling the truth that they actually sent the Plaintiff's Claim. So here is the second weakness...........the assumption that everyone swearing to God actually believes in God. Call me a sceptic but I unfortunately believe that when it comes to money.......God does not exist. God is money. If these BF would throw you out of your home for a small amount of cash.....they have no heart or soul. I also believe that being the scum that these collectors are they say they have served the debtor, swear it, of course, and actually they have not bothered sending out the Plaintiff's Claim at all. Sure, they file all the appropriate paperwork at small claims court as if they have followed the correct procedure but they have actually cheated and you find yourself with a Default Judgment which is not easy to overturn. If a debtor actually has no assets what can happen? Nothing. So you have a bad name for a couple of years on your record. BIg Deal! I do not support not paying your bills but I do believe when you have tried everything and you have nowhere to turn what else are you going to do. I also truly believe that we are ultimately responsible for the choices we make in life. Yes, the credit companies do dangle those beautiful commercials in front of our nose enticing us to sign up and shop. They count on human weaknesses, there is no doubt about that. But the bottom line is that we make the choice to shop or not shop. I think that all individuals should be given financial courses before on embarking on the adventure of spending that golden money. Without a solid financial base people will suffer when they get older and "older" comes a lot quicker than you can possibly imagine. The worst part is that "older" still has interests and passions and hopes and dreams. That never changes. The only thing is that aches and pains come with "older" and new needs and if money has not been appropriately handled from a young age it will be a very TOUGH battle for the "older". It is great to be optimistic and say that I will be okay when I am older and I have years ahead to still develop that "okay" but unless financial responsibility is respected from a very young age.............you won't be "okay"

YEs, all collectors use scare tatics because if they didn't no one would pay their over due bills and collection agencies would go out of business. The reason why they say they will "sue" is because it is a legal issue and when in court, if foud guilty you HAVE to pay.

The only way a collection agency sues if they have tried everything possible to collect the debt. They have your work information (employer name, address, phone and contact info) and you have been uncooperative. Also they have to go and serve a sepina (either to your home or work/school) Another thing is they only sue if the amount is really high (I mean $15,000).

No one is going to take you to court for owing a little amount (under $5,000) as it will cost them too much money to do that.

However, if you have a government debt, (traffic infractions, student loans, rev canada taxes) then they do not take you to court. They just confirm employment and then garnish wages. Again, they can only do this if the debt is unresolved.

Hope that helps!!

I contacted the bottom feeder who sent me a letter back in November, today in fact. I tried (as I did previously) to work out a payment plan ..$100 a month. The letter states if I cannot afford to pay in full a respectable payment plan can be worked out. Well, off course he flat out refused said my amount was not suitable because according to this jerk Welfare recipients pay 3 times that amount back. He laughingly said he'd see me in court, to get a lawyer and that I would be served soon. And just like a coward he hung up. What a piece of $hit!! I know they use scare tactics but i have not heard anything from them since Nov..I suppose I'll find out soon if they are indeed going ahead to sue.

I was thinking I'd call up Telus and try to work out another deal with them. I'd appreciate anyone's advice.

Thanks

Okay, let me get this straight. If a collector calls, ignore the call. If by chance the call is answered, deny the debt. If the collector calls again, ask for proof. If the collector threatens to sue, tell them to go ahead. The collector goes ahead (it has happened) and sues. The court action goes to default judgment (because you did not get served) and a settlement date is called for. Now what? The collector claims to own the debt. How can any of this be? How can they own the debt? What now is their and the consumer's right under the Ontario government?

Thanks Montyloree!!!

I just received a letter ( same agency and agent who left a message 2 months ago) saying that they have been authorized by Telus to extend or settle my account either by full payment or they will work out a payment plan with me ( surprise, surprise) something they would not consider in the beginning. No threats to sue but I find it funny how they are now willing to work out a deal. They also added $100 interest....which ticked me off. Any thoughts??

I have not spoken or contacted these people in two months.

Thanks

butterfly,

Go to small claims court and get the documents required to sue. You'll see that the plaintiff (person suing) has to be the one who files the suit. This is the person or company who the money is owed to. Only the company who is named on the contract can sue as plaintiff.

A company principal, or authorized manager must sign the document which starts the small claims court suit.

The "defendant" is the one who owes the money in this case.

A third party who doesn't owe the debt CANNOT sue. The most they can do is fill in the paperwork for the original creditor.

Please see:
http://www.canadian-money-advisor.ca/album/displayimage.php?album=random&cat=2&pos=-24

This is a copy of a Form 7A which is used with small claims court actions.

How can a collection agency sue you?
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The 1st agent (Collection Agency) threatened to sue me in small claims court for the outstanding debt if I did not come up with the full amount within a month. She said she was working on behalf of the phone co and there was absolutely no way she would accept payments because the phone contract states so. I refused full payment, she became furious.....I told her to go ahead and sue me...she hung up.
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Yes you're right about the loan suggestions...it is ridiculous which is why I did not budge.

Thank You for your comments and suggestions

How can a collection agency sue you?

Unless you are contractually bound to them, they cannot sue!!
If they are contractually to you, you can ask them to prove how they are... WHERE'S THAT CONTRACT??!!

Collection Agencies can't force you to get a loan. That's ridiculous..

Again... ask them to prove that they are licensed in your province.

Check out my podcast here which talks about this collection agency tip:
http://www.canadian-money-advisor.ca/archives/2007/09/new+take+control+of+the+collection+agency+call+podcast.html