Canadian Credit Bureaus - Do We Owe? - Canada

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RE: Do We Owe?

Postby Raymond » Tue Jan 15, 2008 07:47:53 AM

Thanks for the email. I'm sorry I missed your second post. I've been on course and fairly busy.

You didn't mention in your first post that a judgment had been obtained against you. This is serious business because Ontario judgments last 20 years and writs last 6 years. As well, writs can be renewed even after they expire upon filing a special court application or motion and paying a fee. You should NEVER NEVER ignore a court judgment against you or even allow someone to obtain one in the first place. If the interest has ballooned the oustanding amount to over $12K, the plaintiff could get a writ of seizure to force you to sell your home, seize your car or freeze your bank accounts. I don't know what personal reasons your husband may have had for not responding but surely they were not sufficiently important in comparison with the potential consequences of ignoring it.

Before I get into writ details, their enforcement and fees etc., you need to check with the same Small Claims Court office that the judgment was obtained in back in 1996 and see if it's still in the court records. This is important because the plaintiff will need a copy or proof of it in order to give the sheriff's (bailiff's) office to enforce any writ issued by the courts against property or income you have. Next, check with the local sheriff's office (listed under "Enforcement of Writs," "Courts" section of the blue pages.) to see if any writs have been issued against your husband's name. I'm familiar with the ones in the GTA, but you didn't say where in Ontario that you lived. You'll need to go in there in person to have a writ search done since a fee of around 12 dollars is applicable. Do NOT neglect to do this.

Before I get into a lot of complicated stuff about writs unnecessarily, check those 2 things out first and get back to me.

I also have to wonder about the validity of the court judgment from 1996. The old limitation period was 6 years from date of last payment or written acknowledment of the debt. Since the court filing was in Dec.,1995 and you say the debt was defaulted on some time during 1988 or 1989, that may be over the then existing limitation period. If so, it's slightly possible to file a motion to have the judgment rescinded. I say "slightly" because the Small Claims Court Act of Ontario says that the motion to set aside a judgment must be filed as soon as posssible as soon as the defendant learns of it. However, you've had notices about it buried in your house for years.

Also, I'm confused about your calls or letters regarding the delinquency supposedly from the credit bureau. Are you sure this wasn't from some debt buyer or collection agency? Credit Bureaus don't make phone calls or send out unsolicited letters about bad debts.

From my remarks, it should be obvious that while that while judgments and other negative items will disappear off your credit report after 6 years, the consequences of a judgment may well not. Especially important since you are now considering obtaining a mortgage. People think that after all these years creditors have forgotten about them. Not necessarily!!!! They often just sit back, biding their time and waiting for an opportune time to strike; if you'll excuse the oxymorons, any half-decent debt buyer or collection agent will tell you this. Pull your credit reports from BOTH TransUnion and Equifax and see what enquiries are listed on there about you.

Ray
Raymond
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Province: ON


RE: Do We Owe?

Postby doweowe » Wed Jan 09, 2008 03:33:41 PM

Thanks Ray for your input. I pulled out the papers after receiving your reply to review them and it turns out I was mistaken in my dates for which I apologize. This is my husbands debt and he thought it was 88/89 but the paperwork trail, luckily, still filed away in the basement, shows a claim was filed with Small Claims Court by the lumber co. in Dec 1995. He never appeared in court due to personal reasons and wasn't notified of the new court date so he never actually appeared in court and the judgement was filed against him in '96. The first letter from the credit bureau dated Oct '96 advised him that the judgement was filed against him and to pay up or else.

After breathing a big sigh of relief after your first reply based on my misinformation (for which I again apologize), we are now wondering how this correct information changes your opinion of our situation and hope that you can advise how you think we should proceed or if your previous advice still stands. I'm tired of not answering the phone to "private callers" as surely, the one I do answer will be the credit bureau.

Thank you for your time and hopefully, this information will assist someone else in a similar situation.

doweowe
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Posts: 2
Joined: Tue Jan 08, 2008 02:17:45 PM
Province: ON


RE: Do We Owe?

Postby Raymond » Tue Jan 08, 2008 06:36:50 PM

Well, if it was a regular contractor's credit account with the lumber company that went into default in 1989, the unsecured debt is deader than David Hasselhoff's career, no matter whose name it was in.

Come to think of it, that's about when they both went belly up and also indicative of the chance a collection agency has of reviving it.

At the latest, the debt became stats barred by 1995, assuming you've never made any payments on it since it went into default. It should have gone off your credit reports by then also. Pull them to check if you want.

Those letters you are getting are just "faint hope", "last gasp" attempts to collect on it. You can be sure if that $12,000 [original amount and accumulated interest] was legally enforceable, the collection agencies would be doing more than sending you 1 letter per year. That debt may just be one of thousand in a portfolio of stats barred debt that some collection agency or debt buyer purchased. They work the numbers by sending out thousands of "last gasp" notices.

How much would they have payed for your original $2800 debt? Maybe, $0.50, $1 or $2.

Ray
Raymond
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Posts: 1420
Joined: Tue Jan 23, 2007 12:44:29 AM
Province: ON


Do We Owe?

Postby doweowe » Tue Jan 08, 2008 02:59:37 PM

In 1988/89, I had a credit account with a lumber co. while building a house with another person. Arrangement was that I did the labour & other person paid the bills but quit paying when he went thru a divorce.

As credit account was in my name, I was left with the debt of approx $2800 in 1988.

I've been receiving apprx 1 letter per year and a phone message ever 2 or 3 mo. from credit bureau. No contact has been made with credit bureau. Last letter, the amount was well over $12000. Not sure how to proceed to clear this up cheaply to get off my record. I was pre-approved for a $175000 mortgage recently so I wonder, is this really affecting my credit? Also wonder why aren't they persuing me more actively?

Any input would be greatly appreciated.
doweowe
Member
Posts: 2
Joined: Tue Jan 08, 2008 02:17:45 PM
Province: ON


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