Collection Agency Debt Collection - Know Your Rights To Stop The Harassment
96
Is a collection agency hounding you for a debt? Realize that at some point, everyone incurs debt. In this article, you'll find out what you need to know about your rights when dealing with a collection agency, and how to stop collection agents from harassing and intimidating you. You may also want to check out my other articles, Collection Agency Debt Sample Letters and also take a look at this likewise very useful article Collection Agency Debt Collection-30 Frequently Asked Questions and Answers for more information about dealing with a collection agency and debt collectors.
It's important for you to note that this information is NOT legal advice. The information in this article is general information only, and it is not intended to replace legal counsel. Consult a qualified and competent lawyer to handle your specific case, so that you can make a fully informed decision that's best for you. Also, review the laws around collection agencies and lawsuit limitations for yourself, so that you become aware of what you can and cannot do legally.
From the rich to the poor, the recent recession and continued economic downturn have caused people to become unable to pay their debts. In these situations, creditors usually turn to collection agencies as debt collectors to retrieve outstanding, overdue, bad debts for them, because it is cheaper than the creditors doing it themselves. Unfortunately, when collection agencies become involved, they often use harassment,, intimidation and fear mongering to try to force you to pay the debt.
Canadian laws, such as the Collection Agencies Act, have standards and limitations that the collection industry, collection agencies and collection agents must follow when dealing with you. Don't allow collection agencies to break laws and bully you into making payments or arrangements.
A creditor is the company/person to whom you owe a debt (money).
A collection agency isa company hired by a creditor to get back the debt (money) you owe the creditor.
A collection agent is a person hired by a collection agency to contact you about paying the debt (money) owed to the creditor.
- Rules Collection Agencies Must Follow in Ontario
The Canadian law on what collection agencies can and cannot do when dealing with you. Collection Agencies Act - R.R.O. 1990, Reg. 74
Know your rights! Understand that you have the right to:
- - Simply ignore a collection agent’s calls. YOU DO NOT have to take their calls. You can let your answering machine take their calls.
- - You have the right to hang up on a collection agency every time they call. They may not go away, but YOU DO NOT HAVE TO SPEAK WITH A COLLECTION AGENT if you do not want to. Remember to log every time the agency calls you as evidence for harassment.
- - YOU DO NOT have to deal with a collection agency, unless ordered to do so by a court. The collection agency is not the original creditor, and you do not have an agreement with them, so you do not have to deal with them unless you choose to.
- - YOU DO NOT EVER HAVE TO TELL A COLLECTION AGENCY:
-where you work,
-whether you have a job,
-what bank accounts you have,
-which bank you use,
-or anything about your finances.
Collection agents have absolutely no right to ask any information of you. Besides, they should have all that information already from the creditor. If they don't, then they just want you to make it easy for them and do their job for them by filling in the missing information. - Any debt you may owe is yours alone and not your spouse's. UNLESS your spouse co-signed for your debt, he/she does not have to pay for any of it. By the way, a spouse here includes common law partners.
- - Collection agencies CANNOT ARBITRARILY SUE YOU or take you to court. They need to get the creditor's written permission to sue you on behalf of that creditor. Normally, your account is not owned by the collection agency. They are only hired debt collectors.
Statute of Limitation
statute barred debt
In Ontario, as per the statute of limitations, with debts occurring after January 1, 2004, there is a basic time limit of two (2) years (with exceptions), after which time a creditor cannot sue you. This is called a statute barred debt or a stats barred debt. Time starts or countdown begins when the debt is due and owing (no payments made on the debt).
15 year ability to sue limit
There is an ultimate 15 year time limit (with exceptions) after which time no Ontario lawsuit can be started against you, regardless of when the creditor realized you couldn’t pay. Of course, this doesn't apply to exceptions like government debts and others.
- - If a collection agency is going to sue you, they must either have gotten written permission from the creditor or have bought the debt outright from the creditor AND the collection agency must GIVE YOU WRITTEN NOTICE that they bought the debt AND written notice that they intend to begin a lawsuit against you.
- - Creditors and collection agencies rarely sue, because suing is an expensive and time consuming process for them to follow through on, especially for small debt amounts. Plus, there is no guarantee that they will win if they do sue you and getting you to court could take them years. It’s far easier for them to try to bully, trick, hound, and scare or harass you into paying.
- - Collection agencies are NOT SUPPOSED TO CONTACT YOU UNTIL SIX (6) DAYS AFTER THEY HAVE SENT YOU:
a) a private ordinary notice letter stating that your account was given to them, b) provide the name of the creditor they represent, c) indicate the balance amount of the debt owing, d) provide the name of the collection agency, and e) state by what authority they have to demand payment from you. A letter saying that you owe them money without the proper information provided is not considered a notice letter. It is more like a demand letter and does not count.
- - If you did not receive a notice letter, and the collection agency starts calling you, tell them you did not receive a notice letter from them, provide an address then hang up. They must wait another six days before contacting you again concerning the debt.
- - A collection agent is NOT SUPPOSED to contact you more than three (3) times per seven day week for the same creditor, once they have reached you. The key here is reaching you. Reaching you means speaking with you on the phone and or any messages they leave on your answering machine and voice mail. They can also send you ordinary mail as often as they want, unless you've sent them a cease and desist letter. More than likely though, they will not send you too much mail, because it costs a lot to do so with no guarantee of having any effect on you.
 | Amazon Price: $29.97 |
 | Amazon Price: $14.95 |
 | Amazon Price: $29.99 |
No lenght of time limit in Ontario for halting creditor contact
In Ontario Canada, there is no limit to the length of time a creditor can continue to contact you for a debt. A creditor can continue to contact you about a debt indefinitely, even if it is stats barred. Why? They can, because the money is still owing.
- - If a collection agency does not contact /reach you, and they do not leave a message/ voice mail, it is not considered a contact, so they can continue to call you as much as they want to until they do contact/reach you.
- - A collection agency is NOT SUPPOSED to call you Mondays to Saturdays before 7 AM or after 9 PM. They are not supposed to call you on Sundays before 1 PM, and not after 5 PM on Sundays. They are not supposed to call you on statutory holidays.
- - Here are the statutory holidays a collection agency CANNOT contact you on; including: New Year’s Day, Family Day, Good Friday, Victoria Day Canada Day, Civic Holiday, Labour Day, Thanksgiving Day, Christmas Day, December 26, AND any other day fixed as a holiday by the government.
- - A collection agent CANNOT INSIST that you make full payment to them for a debt. In fact, they cannot insist on anything! They can ask you for whatever they want, be it partial, monthly, weekly etc. payment, but you DON'T HAVE TO give them anything, unless a court of law has ordered you to do so.
- - Collection agencies CANNOT collect from you, unless you agree to it, because they do not own the debt. Collection agencies cannot sue you and take you to court unless they have permission from the original creditor or have bought the debt outright from the creditor and have advised you of it.
- - Collection agencies CANNOT GO INTO YOUR BANK ACCOUNT OR GARNISH YOUR WAGES without your permision or a court order. In order to go into your bank account, you must allow them (give them permission) to do so by supplying cheques or using some other set up. In order to garnish your wages, a court of law must order it, and this ONLY happens if the creditor wins a lawsuit against you. Furthermore, if you don’t have a large salary, they cannot garnish much.
- - Collection agencies CANNOT suggest or advise the creditor to take legal action against you without first sending you notice of what they've done.
- - Collection agencies are NOT SUPPOSED to contact your employer except one time to confirm your employment, job title, and job address, or if your employer co-signed for your debt, or if you gave them written consent to contact your employer, or by a court order allowing them to contact you, or a court ordered salary garnishment.
- - A collection agency is NOT SUPPOSED to contact your spouse, family members, household members, relative, neighbours, friends or acquaintances except to confirm your address or telephone number (if the collection agency doesn't already have it) or if you gave the collection agent consent to contact these people or they are co-signers on your debt.
 | Amazon Price: $20.44 List Price: $24.95 |
 | Amazon Price: $17.99 |
 | Amazon Price: $7.99 |
- - A collection agency CANNOT publish or threaten to publish anything to do with you not paying the debt.
- - By law, a collection agent is NOT SUPPOSED TO to make what constitutes harassing telephone calls to you and/or your family. Keep a record of the dates, time, and how often they call you.
One legal definition of harassment is "engaging in vexatious conduct and comment that is known or ought reasonably to be known to be unwelcome." Human Rights Code, R.S.O. 1990.
- Ontario Ministry of Consumer Services
Collection Agency Information
- Ontario Ministry Of Consumer Services - Consumer Protection Branch
The Consumer Protection Branch mediates disputes between consumers and businesses where appropriate, inspect businesses to help them comply with consumer law, and investigate or prosecute when it appears that consumer laws have been violated.
- - By law, a collection agent is NOT SUPPOSED TO:
-harass you,
-use scare tactics on you,
-use profane or coercive language with you,
-try to intimidate you with excessive pressure, or
-threaten you by mail or by telephone,
in order to try to get you to pay the debt. These intimidations and intentional fear tatics are criminal offences. Collection agencies also cannot give you false or misleading information to get you to pay up. It’s a smart idea to turn on your answering machine or tape recorder to tape any and all calls and conversations with a collection agent. - - If you feel you are being harassed (according to the legal definitions of harassment) by a collection agency, call and file a complaint with the police and contact your telephone company about the harassment. As well, file a complaint against the agency and agent with the Consumer Protection Branch of the Ministry of Consumer Services. Filing a complaint might sometimes be useless, but occasionally , filing the complaint causes the collection agency and their collection agent to be reprimanded with a fine and or even lose their collector's licence. (If enough people filed legitimate complaints, maybe then something more would happen to those nasty collection agents!)
- - Collection agencies are NOT SUPPOSED to continue to call or send you letters, if you’ve told them or even better yet sent them a registered letter informing them that you aren’t the person they’re looking for (of course this only works if you truly are not the person they are looking for).
- Industry Canada - Office of Consumer Affairs (OCA)
Regulations differ slightly across Canada. Find the different provinces rules on collection agencies.
- - Collection agencies, by law, are NOT SUPPOSED to continue to contact you, if you send them a registered letter telling them that you dispute the debt and suggest that they take the matter to court.
- - Collection agencies, by law, are NOT SUPPOSED to continue to contact you, if you send them a registered letter informing them to deal solely with your lawyer and provide the lawyer’s name, address and telephone number. Your lawyer can also do this instead of you and the collection agency should stop contacting you.
- - Collection agencies, by law, SHOULD STOP contacting you, if you send them a registered letter informing them to deal solely with your bankruptcy trustee and provide them with the trustee’s name, address and telephone number. Your trustee can also do this instead of you and the collection agency should stop contacting you until your time with the bankruptcy trustee ends.
If you choose to SPEAK with a collection agency:
- - Remember that EVERY TIME YOU ACKNOWLEDGE OWING A DEBT YOU RESET THE TIME LIMITATION CLOCK (generally, acknowledgement is done in writing or by giving a payment. There is a 2 year statue of limitation on creditors for suing for an unsecured, defaulted debt).
- - Insist that collection agents treat and speak to you with respect and professionalism when dealing with you, or you will hang up on them.
- - Place yourself on the same level as collection agents: insist that they call you Mr/Ms Last Name, because you have not and will not give them permission to use your first name. The use of your first name is a psychological trick they employ to try and place themselves in a position of authority over you by only giving you their last name to address them as Mr/Ms so-and-so, and then calling you only by your first name. Don't submit to this ploy. By the way, if they do give you a last name, it is most likely false (a name used only for collection purposes.)
- - If you are not working and cannot pay them, consider telling them that you cannot make payments and are not working, then hang up the phone without saying anything else. Remember the statute of limitation.
- - If you start to feel that they are pressuring you, don't be afraid to hang up the phone while talking to them. The act of hanging up on them may relieve the stress associated with dealing with these debt collectors.
- - If you decide you do not want a long conversation with them, when they call, let them start the conversation by identifying who they are and establishing that they have reached you. Then ask them for the agency's name and agent name. DO NOT get into any conversation with them nor say anything else except to say the number one (#1), and then hang up. The next time they call, say #2, then hang up. When they call again, and they will, say #3 and hang up. What you are doing is confirming that they have contacted and reached you three times in one week and any more contact from them in that same week is against the law. Make sure you log all collection agency calls -times and dates.
- Remember that answering machine messages and voice mail calls count towards the three time per week that a collection agent may call you. Of course collection agents know this so they may not leave any messages.
- More than likely all conversations you have with a collection agent is being recorded, so do not admit to anything, do not admit to owing any debt or anything else that they can use against you in court.
 | Amazon Price: Too low to display List Price: $39.95 |
 | Amazon Price: $70.00 List Price: $99.00 |
 | Amazon Price: $59.95 |
 | Amazon Price: Too low to display List Price: $17.95 |
If you choose to DEAL with a collection agency:
- - Get every agreement you make with the collection agency in writing, before you make any payment to them.
- -Never send cash to a collection agency, and always get a receipt. Send them a bank cheque or even better a postal money order to avoid them knowing your bank and bank account information. Be sure to get a receipt for the payment you made from the collection agency.
- - Always insist on a payment amount and payment schedule that is good for you. Don’t worry if the payment or payment time is not good for them. They want you to pay them. So if you can’t afford the amount of payment they are asking you for or can't follow the payment schedule that they want you to follow, don’t agree to their demands. Tell them what you can afford and when you you can pay.
- - Forget worrying about your credit rating if your account is with a collector. Don’t believe what they say about them fixing your credit rating either, because if your account is with a collection agency, your credit rating is already shot or badly damaged.
- - Log every telephone conversation you have with the collection agency; including the agency name, agent name, time of calls, date of calls, brief summary of what was said and or agreed during calls.
Debt problems will not go away until you manage them. Don't ignore them. Take the steps necessary to resolve your financial situation. Don't allow yourself to be bullied though, or put down, or be disrespected just because you have debt. Remember that even the most famous and wealthy of us have been in this position at some time or the other.
Creditors have the right to hire collection agencies to recover the money they claim you owe them. They and their agents do not, however, have the right to break the laws, threaten or harass you in their attempt to get you to pay.
If you can't pay your debts, consider using or getting professional help. There are many consumer proposal administrators and licensed bankruptcy trustees available to help you deal with your situation: Good Luck.
___________________________________
callmefoxxy.com, my pen is a mighty sword!
 | Amazon Price: $11.59 List Price: $12.99 |
 | Amazon Price: $10.00 List Price: $24.99 |
 | Amazon Price: $62.00 |
Like this article?
Then you may also like:
Cell Phone Premium Text Message - What Is It and How To Stop It by callmefoxxy
Have you ever seen on your cell phone bill a charge of $2, $5 or $more for a “premium text message?” If you have, then you may be wondering what premium text messaging is, why...
Car Insurance Claim After a Car Accident by callmefoxxy
After you’ve been in a car collision, and dealt with the details at the accident scene, you're now wondering what happens next with the car insurance claim process. You'll find what you need to know about...
You'll Laugh So Hard 4! by callmefoxxy
Careful what you wish for! Jokes, Funny Pictures, Comedy, Funny Videos, Bloopers and more. Welcome to You'll Laugh So Hard 4! If you've been following along, then you've probably been laughing really hard...
I enjoy getting feedback and comments, so please let me know if you liked this article by:
- Clicking the useful/ funny/ awesome/ beautiful buttons below
- "Vote it up" below by clicking on the olive green button
- Share it with friends on Facebook, Twitter, Google etc.
Thanks for your feedback...
vote upvote downshareprintflag
- Useful (25)
- Funny (3)
- Awesome (13)
- Beautiful (3)
- Interesting (9)
CommentsLoading...
Glad you found it useful... I've been there, and had to learn how to take back control from those vultures: stop being afraid of them. Once I knew my rights, it was smooth sailing and bye-bye to the collectors' bullying. I'll post some sample letters that you can use to stop them from harassing you. They worked for me, hope they will for you too; Good luck.
callmefoxxy, my pen is a mighty sword!
Thanks for this very important information. If they call and I never answer the phone, but the leave messages on the answering machine, does that count as contact, for statute of limitations?
Glad you found this article useful to you Lulu Sue1987. As far as I know, the Statute of Limitation is concerned with the passage of time and your agreement/ acknowledgement that you owe the debt (either by agreeing you do over the phone or in a letter). So, even thought a debt collector's message left on your answering machine counts toward the number of times they may contact you in a week, it does not count as you agreeing to owing the debt.
Thanks for the quick reply. I really appreciate it.
Great Article I use these tactics as well as your letters....lol works great
I hired a lawyer in 2005 to help me fight a charge. In good faith I paid the entire fee due to my lawyer prior to my trial date (this is not under dispute). However, my lawyer made fatal errors during the trial which led to an adjournment to a later date when the entire trial would be reconducted. I was not informed of the second trial date and I was not present for it. I received a phone call from this lawyer months later (latter part of 2006) telling me I had been aquitted. However, he informed me verbally over the phone that he felt I should pay him an additional fee for his attendance at the second trial (in my absence...???). I disputed this fee for several reasons....(one)because I felt he caused the mistrial at the first event due to his unprofessional conduct...(two) that he failed to inform me of the second trial date and I was not present and (three) because I did not sign any contract agreeing to additional fees to represent me at the second trial date. Althoughh I refused to honour his demand for extra billing, he sent me an invoice for an absurd amount which included a percentage if the bill was not honoured on time. I ignored this bill and informed him of this. I remained at the same address and phone number for a further 18 months, during which time I did not receive any communication....no 3 mth, 6 mth. or 18 month update on the, alledged, unpaid account. Just recently, five years later, and at my new address, I have begun to receive highly intimidating calls from a collection agency demanding payment in full, and on behalf of this lawyer as the creditor. I explained I owe him nothing, but I was yelled down and I refused to accept further calls. I have received a registered letter demanding full payment and with the threat that my EXCELLENT credit rating will disappear should I choose to ignore their warning. The accrued interest during the past five years is now half the debt they are demanding...and the overall debt has swelled whilst I was never made aware that I owed anything at all ( I believed he had given up on his demands back in 2006 when I first received billing and refused it). What's my next move ? I hate bullies...especially forgetful ones who choose to strike below the belt once their memory clears. I have been told that there is a statute on first party collections of two years...but the collection agent assures me I am wrong and they are free to collect....also that they can "destroy" my credit with no judgement in court. What am I to think? I want to fight, but don't know where to begin. THANKS !!!!
Pup happy I can help you.
I am a debt collector with 7 years experience in the field. I have trained collectors at all levels of collections including yours.
Rule number 1... Validate whatever I tell you with your states individual laws!!!! I do not have all the intricacies memorized but I can get you started.
Your excellent credit is already taken a hit. There is nothing more they can due aside from obtaining a judgement.
However you say it has been 5 years since the date of last payment. Depending on the state you live OR THE STATE THE DEBT ORIGINATED IN you are either still within statue or you may not be. You need to check this to verify. For example Michigan has only 4 to 5 years depending on the type of debt. Iowa has 10 years. So go find this out.
Next do not talk to these guys until you know exactly where you stand legally. The only conversation you should have is asking them to send proof that they are the legal debtor and tovalidate that point.
Next make sure they cannot locate your employment and as humble as this might make you tell you family and friends that this guy is looking for you. CONTRARY TO THIS POST I CAN CALL AND ASK FOR UPDATED INFO ON YOU!!! YOU AGREED TO IT AT THE TIME YOU ACCEPTED THE LOAN AND IS IN YOUR CONTRACT... trust me. Be sure that anyone who knows you DOES NOT UNDER ANY CIRCUMSTANCES GIVE OUT INFO ABOUT YOU!!! It happens and collectors are pros at getting your mom ,for example, to give us this info.
Now that excellent rating... Go to annualcreditreport.com. Get your credit checked. If it is there then you have a decision to make about paying the debt. COnsidering it can only sit on your credit for 7 years you might want to think about that. I it is not there then a potential strategy would be to just never answer the line again and see if they ever send you something in the mail.
Hope this helps... for more info check out http://jediamondm.hubpages.com/hub/Tips-from-the-c Maybe the info in here can help you some more.
Hi Frank, thanks. I'm glad you found the article helpful..
Hi Puphappy, a few things jumped out at me as I read your comment, so I'll tell you my thoughts on them...
1) Depending on what was written in the retainer you signed with the lawyer, you may still owe him a fee (ie did the retainer list how many court appearances the fee covered, how long he would work for that fee, did it cover up to the end of the matter, any contingencies, etc). You need to go over that retainer (if you still have it) and scrutinize it.
2) Negligence on the part of the lawyer does not release you from paying his fee. You needed to have sued him for his negligence to recover any fees you had paid to him.
3) As stated in this article, in Ontario Canada, any debts occurring AFTER January 1, 2004, have a two (2) years (with exceptions) time limit, after which time a creditor cannot sue you for the debt. However, they can continue to hound you indefinitely for a debt as there is no time limit on how long they can continue to contact you to pay a debt they believe you owe to them.
4) Though it is humbling to receive a demand letter, it should not frighten you. Collection agencies can demand what ever they want, it doesn't mean you have to give it to them. Here's the reality. If the debt has been sent to collections, then it is ALREADY on your credit report which means your credit rating has already received a hit. HOWEVER, it doesn't mean that your credit will be destroyed. If that is the only bad note on file, then your credit should be still very good. You may want to get a free copy of your credit report, and go over it to see what your report is saying.
5) Unfortunately, collection agents seem to think they have to be rude bullies in order to do their jobs. Hanging up on them seems to be the only thing they understand when they start with those harassing tactics.
6) It would appear, based on what you have written here, that you have 3 choices:
a) pay them and get rid of them once and for all (yes this burns, but it will get rid of everything at once (if you follow this route be sure to get everything in writing from the collection agency that you "paid in full as agreed");
b) ignore them and don't answer/respond to any of their calls/letters (this of course means you may continue to be called for a long while and your credit rating will be hit for the next 6 years at least depending on where in Canada you live);
c) take the lawyer to court, and let the judge decide if you still owe the lawyer anything (this will stop the collection agency, but means that you must be willing to pay the court fees, possibly being run around by the lawyer for a while before getting to court, and you may lose).
Whichever way you decide to go, I'm sure it will be the right choice for you. Be sure to inform yourself as much as possible about the laws that control collection agency activity. Also, take a look at my article http://callmefoxxy.hubpages.com/hub/Credit-Debt-Ma for more information on understanding credit reports.
Hi JEDiamondM, thanks for your comment. I'm not sure what the laws are in the US, but this article covers Ontario Canada's laws for collection agencies and collection agents. The contact rules here, be they to contact employers or family members, may be different from those found in the United States. Hopefully, Puphappy found the information in the article and comments helpful.
Nice article. Thanks for sharing useful information!
Hi Foxy,
Thanks so much for your thoughtful reply to my post...it all makes sense except for one item in point 6), item b). I understand that my credit has taken a hit, and that it may now show on my record although I have not yet checked to confirm this. But, can they continue to hit my credit for the exact same alleged debt year after year ? The alleged debt originated in 2006. Surely it can only stay on my record as a black mark for a specified term ? I'm in Ontario and understand the 2 year SOL in our province...just not sure how the credit bureau handles the reports it receives. I have no intention of paying this debt, as I stated to this lawyer back when it first became an issue, and when he could have put up an argument for payment (which he did not, and also never pursued the debt until now five years later). Thanks again for your help, Foxy, and this question is, of course, open to anyone who may help illuminate the mysteries of credit reporting. It seems to me that ANYONE can harm the credit of someone else, simply by claiming a debt was not paid. Is no proof required ? Fortunately my partner has an excellent rating, and we'll get by with that, but it INFURIATES me no end that something like this can happen to hard working, honest people who have no intention of cheating anyone, but simply refuse to allow themselves to be bullied.
Hiya puphappy.
From my understanding, creditors don't have to report a default. However, if it has gone to collections now it must have been reported at some time to one or both of the major credit bureaus.
If the debt was reported to the credit bureaus in 2006, then it cannot be reported again, only updated if there is any new activity on the account.
If the debt was never reported, it can still be reported now as a collection account, but can only stay on file for the remaining years left that a credit bureau keeps records on file: (for example, if the debt is 5 years stat barred and no payment was ever made on it, it can only continue to show on your credit report for another 2 years). See Consumer Reporting Act R.S.O. 1990, c. C.33, s. 9 (3).
Credit bureaus use the "last date of activity" from the time the default is reported to set the time frame for the years a debt stays on record. They get this date from the creditor. This means that the last date you dealt with/communicated with/made a payment to the creditor or collection agency about the debt is the "start from date" they use to calculate the years till the debt is removed from your credit report (unscrupulous collectors try to fudge this date).
A debt that is more than 7 years old generally cannot be reported to the credit bureau, unless it is not statute barred.. However, those unscrupulous collection agencies will try to make the debt look like it is not as old as it actually is, so that they can report the debt to the credit bureaus and have it stay on your report for a longer time.
Worse still, some collection agencies buy old debts and try to collect from consumers who don't know that the debt is barred from a law-suit. These collectors then use aggressive actions to try to get the consumer to pay something. If the consumer pays any amount to the collection agency, or sends the collector a written promise to repay, or agrees orally that they owe the debt and will pay it, then the time clock on the debts restarts and allows the collector to try and recoup the full amount owed on the debt for another six or more years. This may be why years later you've receive collection calls for your old alleged debt.
No individual person can view your credit report without your written consent. Only court orders, government requests, collection agencies reporting a debt, and companies to whom you've apply for credit, tenancy, insurance, employment or other permissible reasons can view and make updates to your credit report for related reasons, and only with your permission (permission granting is usually found in a clause in the contract you signed with the creditor).
So, even though a creditor does not (or cannot) take you to court, if he she can prove a debt exists (usually from a signed contract), he/she can play havoc with your credit rating for 6 (or more years depending on the province you live in) and hound you to no end for the debt. This is their trump card in Ontario.
If you have solid (written if possible) proof of the date of last activity on that alleged debt, or can prove that you don't owe the debt, and you pay very close attention to the info in your credit report, and update your credit report yearly to make sure it is accurate, you could force the damaging information on file to be removed from your credit report, or shorten the remaining removal time, or add a short statement on the account explaining your side: these are your own trump cards in a way.
Puphappy, too many of us don't stand up for ourselves and speak out against bullying. Of course, sometimes that's very difficult to do when creditors have so much resources, inside knowledge and help to carry out their bullying. Still, Knowledge is empowering, which is why I offer what I know freely to you and everyone... Hope it helps and answers some questions...
Hi vperry. Thanks so much for your comment :)
Lots of great info...I have a question WHO do we contact to report an agency. They are calling 5 times a day, looking for our son that no longer lives with us and has not for years..We have told them to remove us and they say they cant remove us..
Hi dg, I'm glad you find the info useful.
Those collectors are simply being idiots. They know that they should stop calling you, but they figure that if they harass you enough, you'll get fed up and put pressure on your son to contact them, to get them off your back. Unfortunately, it's a tactic that usually works.
Consider sending them a registered letter informing them that the person they are seeking does not live at your address, and to cease sending you letters and calling your phone number(s), or you will report them to and file a complaint with the Ministry of Consumer Services.
You might also consider filing a complaint with the police, make a complaint to your telephone company about their harassing calls (1-800 numbers cannot be blocked by you only by the phone company), and file a complaint against the agency and agent with the Consumer Protection Branch of the Ontario Ministry of Consumer Services. Tell them that you have told the agency to stop calling and have sent them a registered letter also. Filing complaints may causes the collection agency and its collection agent to be reprimanded with a fine.
Foxxy,
You rock ! Your information and resources are priceless. So glad I found you. I'm sure anyone finding themselves in this predicament will feel the same, and benefit greatly from your help. Sincere thanks !
Hi Puphappy,
...thanks n you're welcome :D
Hi there, I have a question. A debt collector sent a notice letter back in October to our OLD address, even though the company gave them their whole file stating our current address. So of course we received this letter last week, passing, of course their "7 day contact us or else we put this in your credit bureau" so even though we paid the amount as soon as we got the letter we can't take that off our credit report. Isn't it their fault for sending this one and only notice letter, no phone calls, to an address they know we don't live at?
any help would be appreciated.
Thanks
Thanks for this valuable information. I have many debts that I have not been able to pay and it's been almost three years. I cannot affort to file bankrupcy and cannot get stand to talk to anyone. This information is very helpful.
Hi
I am having problems with a company claiming I signed as a co-signer on my ex's loan. I initially did however changed my mind and recended my signature and have an email proving they will accept the loan without my signature. Needless to say I am happy I took my name off this loan as my ex defaulted and is not paying anymore however they are claiming I am a co-signer. I am not, I have told them by e-mail probably a good 15 times and by phone and even emailed them the email confirming I am not a co-signer from their loan officer. That was in 2009, they stopped contacting me and I thought it was over however they started calling again under the disguise as calling for a personal reference for my ex, when I wouldn't give any info they started asking about myself it seemed very fishy so I said I didn't want to give out any info. Somehow this company found out my employers personal cell number and called him regarding this today. I am so pissed off I don't know what my rights are but I just think this business practice is so wrong. I have been having to deal with this bs for years now and its not my loan. I called them and they basically said I am on the loan to which I said no I am not it was all very childish. The person I spoke to only gave me the name "Max" with no last name and when pressed for more info he wouldn't give it up. What do I do?
Great article...just one clarification.
Debt in Ontario can only be acknowledged by a payment or by a written and signed acknowledgement according to the Statute of Limitation. Further the clock can not be restarted after it has expired regardless what you do.
Once a debt has passed statue of limitations, and cannot be acted on in court, will it still stay on the credit rating for 7 years or is there any way to petition that bad debt off the of someone's credit report?
ie. Mobile phone debt from 4 years ago is likely now passed SOL, but will it continue to show on the credit report for the next 3 years?
I am getting very confused about the statute of limitations in Ontario and what collection agencies are allowed to do. I was contacted regarding back rent that I had no idea about - this was 3 1/2 years after I moved! I knew nothing about this alleged debt. (By the way, I gave the landlord my forwarding address and was living at that address for about a year - I was never contacted there.) Would this fall into the 2 year SOL? As well, I sent a registered letter disputing the debt, recommended taking the matter to court (this was almost 1 1/2 years ago), and to limit any further contact to mail only. I have been telephoned at my place of employment numerous times since then and I just found out that they have been sending branded letters there as well. My employer was ticked and also didn't want to see me get upset, so the letters were thrown out. I asked him not to do that as I am keeping track of everything. As well, I have asked on 3 occasions for the license number of the agent and have never gotten it. Am I covered by the SOL, and am I right in assuming that this agency is acting illegally? It's very frustrating. Thanks for any help you can give me!
This is an outstanding hub so rich of information for those who are harassed by collection agencies and do not know the right thing to say or not to say. A lot of useful information for a lot of people who may need it now. Thumbs up.
Hi everyone. Sorry about the wait to reply to your comments, but I was ill with a most nasty flu for MANY weeks. Anyway, I'm just beginning to feel normal again. I'll try and catch up with some responses...
Hi Jennifer. First off, the collectors had no intention of removing the fact that you defaulted from your credit report (whether you paid or didn't) which is why they sent it to the wrong address (of course they knew your current address!). The letter (that they sent to the wrong address) was just a ploy to get you to pay up (which you did, hence the ploy worked). Remember, once your file is sent to collections, your credit report will show/reflect this, and cannot be removed without the creditors say-so.
Second, as to ONLY sending their offer to a wrong address, you need to realize that they don't have to notify you by different methods of any offers/discounts that they may want to extend to you to get you to pay off what you owe. Think about it now. Should they run after you to take their offer/discount to pay up when you know full well where they are and could easily contact them to work out some deal?!
Hi LULU SUE1987. You are not alone. Unfortunately, the recession (and life) took a heavy toll on many. Hang in there. Thanks for your comment. I'm glad you found the article helpful.
Hi Bebaker. Hmmm. If you signed a legal document as a co-signer, and never signed another new legal document removing your name as co-signer before the loan was given, it sounds to me as if you may still be on the hook as co-signer, despite your attempt in 2009 to rescind by email. A letter showing that the lender would accept the loan without your signature as co-signer is not the same as a letter of rescission and may not be enough. Really, it comes down to the paperwork that you have and your state of understanding at the time your tried to rescind.
Frankly, you need the counsel of a lawyer to review all your paperwork and to define recent contract laws plus the legalities of email correspondence.
As to the collectors contacting your boss' personal cell, well this is of course illegal. More than likely a new collection agency just took over your file and is trying to do what they do best, harass folks.
Really consider a lawyer who would be able to cover all angles for you, including getting collectors to stop calling and harassing you.
Hi TJ. Thanks for the comment.
Hi Gunit. Thanks for your comment. As far as I'm aware, the bad debt listing will stay on your credit report until the allotted time has passed. I'm not aware of any way to remove it earlier without requesting the creditor remove it (most unlikely if you didn't pay them) or a judge's decision.
Hi Hopper22. Collection agents are a pain aren't they?!
Well, the 2 year statute limitation only applies to debts which occur after Jan 2004 and takes into account the time the creditor realized or should have realized you weren't going to pay, the date you last paid, etc. It may apply to your situation, but only you would know for sure.
It sounds like you have a strong case for a solid complaint to the Consumer Protection Branch of the Ministry of Consumer Services. Use all your files, records and dates about the collection calls to you, at your employment, the letters they sent to your employer, and your "take the matter to court" letter to submit a complaint. The good thing about filing a complaint is that the collector will be spanked (not very much unfortunately, since most people harassed by collectors do not make complaints). However if you complain, it will have the collectors easing up on breaking the laws where you are concerned, because they will know that you know your rights. Oh and yes, I do believe they are breaking the law, lol
Oh, and Hopper22, you're doing the best thing for yourself: you're getting informed. Knowledge is powerful. Good Luck...
.
Hi ytsenoh. Thanks for the comment, and the thumbs ups! :)
Hi foxxy, appreciate you writing your specific provincial tips and advice about such an important topic that i am sure affects countless Ontario residents.
You are helping many people (myself included) get by. your words have made a huge positive difference:)
I also had an inquiry involving debt validation in ontario. I have some accounts that are over 2 years old , some over 5 years. for the past years they've been calling and sending letters and i have been ignoring them all.
I would like to send a letter requesting validation of these debts, and if they cannot produce them then i would want to dispute these charges (effectively ending all communication with me;as i interpret it) looking through the collection agencies act i cant find an act which guarantees the right to validation, like in the US.
Is it wise for me to ask for a validation? or should i just flat out dispute these charges, knowing full well that the SOL has passed. My next step would be to dispute it with the credit bureaus, and hopefully get it off my record to some degree, if its possible.
thanks for any knowledge you can share:D
Great info! I am currently dealing with this at the moment and it is a great source of information to be able to deal with them more appropriately.
Hello Foxxy, what a great article. I got myself involved with horrible pay day loans. The interest in two were 700% as crazy as that sound. After paying $240 every two weeks for 5 months, I realized not one dollar was going to the principal because I was only repaying the interest. In in essence, I paid $2,400 for 5 months on a $750 loan. My bank account was hacked into and I began receiving threatening calls. I found out it was a scam and reported it to the FBI. They advised me to close my account ASAP which I did. The collector for this loan company called me yesterday demanding to speak to my employer. He was rude, called me a liar and threantened all sorts of things. I wouldn't connect the call and he threatened to look up their personal information and contact them. Can they legally do this. I thought the contract I signed with the loan company was private. Please help.
Hi, I owe citibank around 6500. I lost job back in 2008. since then i am not having regular income. I tried to keep up with monthly payment but after while i was not being able to do so. I used to get letter saying u owe certain amount but i ignored all of it casue i was not in situation to do so. Today I got letter from collection agency saying that this matter will be reviewed for placement with an attorney in your area for potential legal action. It also says at this time, no attorney has personally reviewed your account information.I dont know what to do. I make around 1000 dollars a month which i need to pay my rent, car payment, insurance and other utilities bill. Does anybody has any suggestion what should i do and how serious is that mail
Hi zombiedebt. Thanks for your comment. I'm glad you found the article helpful...
As far as I know, there is NO requirement for collection agencies in Ontario to "validate a debt" Per Se. What they must by law do when they try to get you to pay is:
1)provide the name of the collection agency, or the name of the collection agent requesting payment, 2)divulge by what grounds they can ask you for the money (hired by creditor, own the debt, etc.), 3)provide the name of the creditor-person/company who says you owe them money, 4)state the total amount you supposedly owe.
Disputing the debt accomplishes two things: a) it should (but not necessarily) stop the collection agencies from contacting you, until they want to take you to court, and b) give the creditor and collection agency your current address (very useful for future collection agencies too to contact you about the same debt). I can't see a purpose for validating the debt, and disputing it is a moot point, if they aren't vigorously pursuing you for it.
Remember that credit bureaus are private corps whose members are the creditors. Credit bureaus always take the side of the creditors, unless you can supply them with irrefutable proof to prove your case/point.
Bad debt falls off your credit report after 6-7 years anyways, starting from the debt's last date of activity. This date should be the date that the SOL applies, or the last date that you paid anything on the debt, but creditors love to fudge and screw around with this date with the credit bureau, so that it takes years longer to fall of your report. If you plan on speaking with the credit bureaus, this may be the area you want to dispute with them to get the debt off your record sooner.
Hi mikeydcarroll67. Thanks. Glad you find the info useful, and good luck.
Hi Theresa45. Thanks so much. Wow, what awful situations to be in! Holy mackerel, 700% interest is CRIMINAL, and the Ontario government is dragging it's feet regulating this industry. Gee, I hope the bank gave you back your money considering that it was their bank that was hacked into... Did the Feds find out who was behind the scam?
Collection agencies unfortunately do stupid, mean things in their zeal to get paid and power trip, but when they do it, you can always report them to the Consumer Protection Branch of the Ministry of Consumer Services.
As for calling your employer, unfortunately they can. They can call ONCE only to find out if you work there, what your title at work is, and the address of your workplace. Otherwise, they can't ask anything else or call again, unless you gave them written authorization to contact your employer, or the debt was guaranteed by your employer. I'm not aware of anything that says that they can not contact your employer at their personal address/phone#, but I doubt that they'd waste their time finding out that information. More than likely they were just using scare tactics. Take the power from the collectors, tell the basics of your situation to your employer, and let them know that the collectors may call but only have the right to call them once.
The contract you signed with the loan company probably has some clauses for defaulting on loans and debt settlement. Regardless of that, the law recognizes that creditors have the right to hire collectors to recoup the monies owed to them. This ultimately means that your info can be shared with a third party, e.g. collection agencies.
Hi Frank. Though I cannot tell you what to do, I can say that that type of letter is often sent out to scare people into paying. If we break down what is written,
"this matter will be reviewed for placement with an attorney in your area for potential legal action... no attorney has personally reviewed your account information."
you will see that, in essence, it says that your file will be REVIEWED for consideration to send to a lawyer, but that NO LAWYER HAS LOOKED AT YOUR FILE. So in other words, it's just a bunch of words thrown around on paper without any substance.
If it were more serious and having to do with court, you would get a "Statement of Claim" (for Superior Court) or "Plaintiff's Claim" (for Small Claims Court). Fact is, the cost of taking a debtor to court is quite hefty. Plus, if the debt-er has low income, few assets, many other debts, etc., taking them to court would not benefit the creditor who would be hard pressed to get the money back even if they won.
What if the collecting agency told me that they knew my current whereabouts for which is true? And how did they knew it? Like for example they knew that I am in Canada? please advise should I just ignore the email and not to response? Will they harass me in Canada?
wow i wish i saw this article about a year ago when the first collection agency was harassing me... what if your being sought after by 4 different collection agencies for what you owe to one person and was threatening me and none of them are collaborate with the amount I owe. and some how without me giving my address all for agencies found my new mailing address without me ever have giving my address to the person i owed money to as well as contacting my new phone numbers. personal information i never gave out some how they managed to find out for themselves and I'm constantly getting calls min three times a day it's gotten to the point i can time when I'm going to get a call
Hi mmforu. Thanks for your comment. If you have credit somewhere, and owe a provable debt, collection agencies can find out your information. A lot of your personal information is found on file with the credit bureaus. Mind you, it is very unusual for a collection agency to be contacting you by EMAIL. Are you sure it`s not a prank?
Hi orangeblosum. Thanks for leaving a comment. As I said to mmforu, everyone`s personal information, (and a lot of it too) is found on file with the credit bureaus.
Thanks for all the info. Tried out that bit about saying #1, then #2 to get them to quit calling me 15 times a day, unfortunately, they are smart. They now call and hang up when I answer or they put me on hold until I hang up. I've kept a track of these people for four months since I first spoke to them and told them my situation. I guess there is just no way of stopping them.
Interesting Hub, just be aware these laws vary across different states and different countries in this case. It's always smart to talk to the collection agents to try to set up some sort of payment plan (even if it's as small as $5 a month), as most collection agencies would be more than happy to do this.
Great hub thanks for writing this, it is just full of great ideas and ways to deal with collection agencies.
The best feeling ever was when I argued for months with a collection agency about a bad debt and them finally admitting it was wrong from the company claiming I owed money.
Hi Evankovach. Thanks for your comment.
Hi CZCZCZ. Thanks for leaving a comment. Congrats on your success against the collection agency-Yeah! Would you mind sharing how you accomplished that feat? I'd love to know any particular tips or tricks or ideas you could pass on for everyone's benefit?
Hi Maj. Thanks for your comment. Sigh. Ah well you tried and it worked for a while. If they are calling more than the three times a week and you can prove this (even if they call and hangup on you or call and leave you on hold), consider reporting it to the police as harassment AND reporting it to the Ministry of Consumer Services Consumer Protection Branch Toll-free: 1-800-889-9768.
Also, is this the same collection agency, or did they send you to another one. Sometimes when one can't get anywhere with you, they send the file back to the collector and a new agency tries their hand at it.
It's frustrating yes, but hang in there...
Fabulous hub!
Is this only helpful to those who live in Canada? Help us who live in the US as well!
Hi isabellamcfarlin. Thanks for your comment. LOL. Sorry, this article only deals with the Canadian side of things...
I have a question for anyone here:
I have a collection agency calling for credit card debt approx 4yrs ago. I have moved since they started action, and believe they are attempting to deliver a court filing intention and/or their paperwork/notification of the debt first, then the court filing or summons afterward. But, I'm sure they are attempting to contact me via mail but don't know my address. If they don't have my address to send the debt information or the court filing summons, can they still sue me and take me to court if they have never been able to contact me to confirm this debt via the mail? I have also not confirmed via telephone to acknowledge the debt, and only acknowledged that I was the person named that they contacted via telephone.
Any comment would be appreciated. (I live in the United States).
Thank you.
Great Article!I will definitely pass this information on to those in need!
Hi Grimm Tale. Thanks for leaving a comment. Unfortunately, at this time, my article only deals with the Canadian rules. However, perhaps one of the readers will be able to help you. Good luck...
Hi Amand. Thanks for the comment, the compliment and for passing the info on. :)
I live in Canada.I had a collection agency go right into my personal account,and remove a sum of money(under $1,000)without my permission,nor any written notification that they were going to do so,pryor to the removal.All for an old credit card thats been cancelled and inactive for a long time.Infact,I just realized there was still some money owed on this card,and was about to make payment arrangements when all this happened.There was no court involved,nor was I aware of any of this agency's actions.I feel personally violated.Is there anything you might suggest I can do about this?This agency just set me back on other monthly bills i've been saving for.Callmefoxxy,I apreciate any suggestions you may have.Thankyou so much.
So, like many here I am in debt with 4 different accounts and collection agencies. I have signed on with a "debt settlement" company and have sent letter to these collection agencies advising them of this. One has continued to harass me with phone calls. I work shift work, so it is hard to get a hold of me even if I like you calling. I returned a few messages back and left a voice mail explaing the the situation. This CA must have given up, and returned the debt to the creditor and now I have a new collection agency calling and just received a letter today. Credit Bureau Services of Canada. One paragragh pf the letter states "Creditor has now instructed the Credit Bureau to locate and confirm you place of employment and to conduct a full asset search and review of your property and other holdings. Please be advised that this information will be used and leveraged by our collection division to recover your outstanding debt owing"
Considering I am and have been in a debt settlement plan..what are my options. I really do not want these people to call me employer, and I have no assets, I rent, make car payments. Do you have any suggestions. Your site is very informative.
I live in NB.
I have great credit and always pay my visa bill. I currently have a balance of $0 (with a limit of 15,000).. but I've just recently maxed my mastercard at $3000, can I cut it up and forget about it and continue to use my visa?? im guessing that my Mastercard debt will be passed on to a collections agency, can I get away with avoiding them.. i'm not too worried about crappy credit.
Hi Chelseacharleston. Thanks for leaving a comment, and the great compliment.
Hi Brr. Thanks for leaving a comment. Yes, it's a horrible feeling when someone violates your rights, and you not knowing what to do about it. Different variables affect every situation (like the province you live in, etc.), but a couple of things come to mind off the top of my head.
First, are you sure it was a collection agency who withdrew the money from your account, or was it the bank where you have the account that removed the money?
If a collection agency removed the funds, are you sure you did not receive a claim (even by registered mail) which you ignored/misplaced? If a claim went through without you, then a garnishment judgment might have been successful against you, in which case the creditor can take funds from your bank account without your permission.
If it was the bank that originally gave you the credit card that removed the money, then that bank -does not have to notify you -does not have to get your permission -does not have to get a court order -does not have to take only a small amount, to pay back the debt you owe them.
Consider calling your bank from which the money was removed, and ask them by what authority they allowed the removal of funds from your account (a check you signed, your preauthorize removal, a signed agreement, court order, etc.). Then follow the tracks from there to resolve your situation. Good luck...
Hi Overmyhead. Thanks for your comment, and the compliment.
First, take a relaxing breath. Remember, you are taking steps to resolve your debts and not avoiding them, so try not to get stressed out about it. Easy to say, but difficult to do, I know. :)
Second, I'm not a fan of debt settlement/debt management solutions. In my opinion, they can’t do anything for you that you can’t do for yourself. You see, most debt settlement plans work on monthly payments. This means that your debt payment is not a lump sump payment which your creditor/collection agency like and want. When they are contacted by the debt settlement company to make a deal, it will be many months/years before they, the creditor/collection agency is paid in full. As well, oftentimes the debt settlement company will just take your monthly payment and amass it until there is enough to contact the creditor/collection agency to make a settlement offer (all the months of payments you made to the debt settler collected into a lump sum). Therefore the collection agency/creditor does not have to go along with the deal/reduction offer or agree to stop calling your or not sue you for the money you owe them.
I believe that anyone can do this type of forced accumulation of money/debt settlement deal on their own by simply opening a bank account that they can't touch for a couple of years, making monthly payments into it, keeping the accumulated interest, then when about 40%-45% of what the money owed is accumulated, call the collection agency/creditor and pay off the loan them-self. Doing it oneself doesn't cost any unnecessary fee for saving the money owed and calling the creditor.
However, if you want to make monthly payments to someone to settle your unsecured debts (like credit card debts), consider a consumer proposal, because when a payment plan is accepted by the majority of your unsecured creditors, then all of them are LEGALLY FORCED to accept the payment plan, thus stopping all the collection agency telephone calls and mail.
Third, the paragraph in the letter that you received from Credit Bureau Services of Canada is meant to intimidate those who don't really understand this process. Credit Bureau Services of Canada is just another collection agency by the way, with no alignment with the credit bureaus. Sneaky of them though isn't it to use that as a company name to blindside debtors into believing that they are part of the major credit bureaus.
So this paragraph... "Creditor has now instructed the Credit Bureau to locate and confirm you place of employment and to conduct a full asset search and review of your property and other holdings. Please be advised that this information will be used and leveraged by our collection division to recover your outstanding debt owing"
...only means that they are going to check you out (which I'm sure they already did), and if they find that you own anything of value, they MIGHT (but not necessarily) sue you to get back what you owe the credit card company. Creditors don't waste time suing someone who has little asset. It cost them too much money. I'm not seeing anything in that paragraph that says that they will contact your employer.
Anyway, from my understanding, New Brunswick law prohibits collectors from contacting your employer. It states that collection agencies CANNOT contact your employer about your debt nor call you at work without your permission. It says it here, General Regulation - Collection Agencies Act,
"14(1)Subject to subsection (3), no collection agency, branch office of a collection agency or collector shall... (c)communicate or attempt to communicate with the debtor or any other person at the place of employment of the debtor for any purpose in relation to the debt or debtor, except with the debtor’s approval,".
So again, take a relaxing breath, and knowing what you know now, figure out what you want to do next. Good luck...
Hello Foxy, Thanks for the article... its very helpful.
But I have a couple questions to ask you, if you dont mind to answer it for me.
1) I already owing 2 pay day loan companies ( like 1 year ago) but i hadnt pay them back because I lost my job. Last week, they just sent me a letter about Law Office " Paul Kupferstein " ( i dont know if you hear about this company? ). In the letter they said If I dont pay them back $1400.xx in 10 days ( orginal borrow only $400.00, WHAT A LOAN SHARK ). then they will send me to the court.
2) They also called my friends and told me to contact them or they will frozen my bank, garnishment my salary and I will pay $5000.00 in the court. Is that true?
3) Do you think they will send me to the court after 10 days if I dont pay them ( on the day 8 now).
4) I forgot to tell you, I havent live with my aunt anymore ( the house I used address to borrow payday loan). Now, Im living in T.O with my brother so he can cover my rent and foods. But I havent receive theirs call for long time cuz I changed my fone numbers when I move to Toronto. Only heard the letter from my cousin.
Sorry for my bad English. Because English is my second language but I hope you can understand it and help me answer my questions
Thanks alot, and Have a nice day
Hello Foxxy,
Thank you for your article. Its very helpful. I am in trouble like you guys with the collection agency too. I would like to ask you a couple questions and hope you can help me find an answer.
1) Im currently owing Cash Store $400.00 but It was one year ago and I didnt have money to pay it back because I lost my job... Then I moved to T.O to live with my brother so he can cover for me foods and rent, I lived with my aunt and used her home address to borrow PDL... I only received letter from Cash Store like twice about my late payment while I was living with my aunt. I didnt receive any phone calls from them because I changed my phone number right away when I moved to T.O, then last week my cousin called and tell me I got a letter from Law Firm Office call Paul Kupferstein, they told me they are from law office and I have to paid $1400.xx but orginal borrow only $400, WHAT A LOAN SHARK. Also, they called my friend because I used him for my reference and they told him if I dont pay $1400.xx in 10 days ( on the day 8 now) then they will send police to knock my door and send me to the court.
2) They didnt know my new phone number or where i live now. But they know my aunt home address, do you think they will sue me for owing them $1400.xx but i only owing them $400+ interest.
3) Im areally scared and they also told my friend if he doesnt tell them where im living, so he might get in to the court together with me. Do you think they will send me to the court for just $1400 owing? Also, I dont want to deal with them because when I searched on internet about their's company and alot of people said they are collection agency and dont send a cent to them. Just pay the Cash Store. If they dont accept dont pay.
I would like to know what's your opinion on my case. Please help me to know an answer if you can, also, do you know anybody had they sent to the court for owing a PDL yet?
Sorry for my bad English because english is my 2nd language. But I hope you can understand whats im written :).
Thanks and have a nice day
Hello Foxxy,
Thank you for your article. Its very helpful. I am in trouble like you guys with the collection agency too. I would like to ask you a couple questions and hope you can help me find an answer.
1) Im currently owing Cash Store $400.00 but It was one year ago and I didnt have money to pay it back because I lost my job... Then I moved to T.O to live with my brother so he can cover for me foods and rent, I lived with my aunt and used her home address to borrow PDL... I only received letter from Cash Store like twice about my late payment while I was living with my aunt. I didnt receive any phone calls from them because I changed my phone number right away when I moved to T.O, then last week my cousin called and tell me I got a letter from Law Firm Office call Paul Kupferstein, they told me they are from law office and I have to paid $1400.xx but orginal borrow only $400, WHAT A LOAN SHARK. Also, they called my friend because I used him for my reference and they told him if I dont pay $1400.xx in 10 days ( on the day 8 now) then they will send police to knock my door and send me to the court.
2) They didnt know my new phone number or where i live now. But they know my aunt home address, do you think they will sue me for owing them $1400.xx but i only owing them $400+ interest.
3) Im areally scared and they also told my friend if he doesnt tell them where im living, so he might get in to the court together with me. Do you think they will send me to the court for just $1400 owing? Also, I dont want to deal with them because when I searched on internet about their's company and alot of people said they are collection agency and dont send a cent to them. Just pay the Cash Store. If they dont accept dont pay.
I would like to know what's your opinion on my case. Please help me to know an answer if you can, also, do you know anybody had they sent to the court for owing a PDL yet?
Sorry for my bad English because english is my 2nd language. But I hope you can understand whats im written :).
Thanks and have a nice day
Hi Ben89. Thanks for your comment. Unfortunately, payday loans are one of the worst places you can use to get financial help. With outrageous interest rates, and abusive fees for their short-term, unsecured loans. It should be criminal to do this to borrowers, but payday loan companies skate by because of our flawed laws and our thoughtless government.
Here are my thoughts. I've never heard of a Paul Kupferstein. I don't see how he arrived at $1400, considering the Payday Loans Act.
Anyway, Whether he is a lawyer or a collection agency, and even if you do owe $1400, it makes no difference. He must follow the same laws as everyone else. That is, he is not allowed by law to harass or coerce you, nor threaten your family, nor intimidate your friends. He is not allowed to discuss your debt with anyone but you.
If he breaks the law by his actions (and from what you wrote here it certainly seems that he has),
a) consider calling the police and telling them that he is harassing you if he keeps calling. Make sure that you have irrefutable proof that he is harassing you though, BEFORE you call the police. Get him harassing you on tape, or use a letter he sends to you, or have your friends/family hear him harassing you, or get statements from friends/family whom he's threatened, etc.
b) Consider calling the Law society of Upper Canada, and make a formal complaint against him. If he is a lawyer, they will take disciplinary action against him for his misconduct.
c) If he is a collection agency, consider calling the Ministry of Consumer Services, and make a formal complaint against him. If you can prove he harassed you, they will tell him to cease and desist or face a penalty/fine.
Payday loans are like credit card loans, except for smaller amounts. When you borrow money/owe a debt, the person/company that you owe has the right to do what they can legally to get back their money. This means that they can take you to court, or hire a collection agency to collect it from you, if you are unwilling to pay them back voluntarily, or cannot pay them back, because you are in financial trouble, or not willing to pay their agents- the collection agency. However, taking someone to court cost money and time. Most creditors won't bother going to court if the person they want to sue doesn't have any assets to recoup, or is unemployed, or otherwise unable to pay. Furthermore, most of these payday loan companies charges take into account bad debt anyway. They're used to this.
So despite you owing them money, they (cash store/collectors) cannot freeze your bank account, and they cannot garnish your salary unless they win a judgment against you in a court of law.
Plus, they cannot go into your bank account, unless you gave them your consent in some form, and they cannot send the police to your home or your friend's/family's home, nor can they take your friend (who was only a reference) to court as long as your friend wasn't a co-signer to the loan.
This Paul K. person is just saying those things to intimidate and scare you into paying. Don't let him scare you. Remember, you/your friend/family can always hang up on him, or not take his calls.
If he calls again, consider telling him that you will not put up with his threats, and that since you have his info, you may sue HIM for harassment, if he contacts you again. Then hang up. Family or friends can do this too.
Frankly, when it comes to debt, if you want to lose the fear and stress permanently and improve your credit, consider paying small amounts (say $25 or more weekly by money order if you can) to the cash store to get rid of the debt over time. Usually, as long as they get some
payment, they generally will not bother you. Just stick to only what you can afford to pay. They can't refuse your payment, even though they'll say that they can't accept anything less than a certain amount.
I know how terrible and hopeless it feels to be in debt, but just do your best and keep yourself informed. Good luck...
Hi Foxxy, thank you for your quick reply.
But If I call Cash Store (PDL creditor) and they dont talk to me but tell me to talk to collection agency then what can I do? I dont wanna deal with collection agency because I wanna deal with where I owing money from? Also, Did you here any bother got sue from them yet? or they are just making scare on the debtors?
Thank you so much for this valuable information!!! I'm so happy and relieved that I happened upon this. Anyone that has ever fallen on hard times, and feels like there is no light at the end of the tunnel needs to read this, print it and take comfort in it. This article is like a blanket on a cold night. Thank you again!
hi foxxy, thanks for starting this hub it has been incredibly helpful when dealing with these harrassing phone calls.
my situation; I recently started recieving phone calls from a CA regarding a credit card that i have not used or aknowledged in 2-3 years. the CA has not sent me anything by mail at all. it is my understanding that they are legally obligated to notify me by mail of who they are and what they expect of me before they start making phone calls to me about this debt?
the last time we spoke i told him to send me, by mail, the name of his agency, his name, the full amount of the debt owing, and what they expect of me. before i am willing to communicate with him further on the matter.
Now, over the phone the CA has stated i am in debt with this credit card company $11,000. not $11,234, not $11,963.. simply $11,000 even. I find this to be extremely unlikely as my credit card had a maximum of $5000 to begin with and there is NO WAY (even if it was maxxed out, which i'm sure it wasn't) that this card has grown $6000 in interest fees in such a short time. (I personally honestly do not remember what the balance was, if any at all, before i stopped using the card, and moved away for a while.
I have aknowledged that I am the owner of this card, and that there is a possiblity of arrears on it, but am not agreeing to pay back $11,000. The CA is unwilling to send me verification of this debt or a history of this debt. It is my understanding that they do not have to?
What can i do about this, I am willing to make an arrangement with them and they are being unwilling to do same with me by demanding the full $11,000.
Do I have legal right in Canada to ask for proof of this debt in the form of complete history with the original creditor or not?
Do i have legal right in Canada to refuse payment to a CA without order from a judge to do so?
Do i have legal right in canada to dispute the debt partially? (I am not trying to run from my debts, I do want to pay!!! which is rare, but i dispute that the amount is what they claim.
Should i seek an attorney? or is it best i just let them "take me to court" if they choose to do so, and hope that they don't?
thanks any advice is greatly appreciated.
I had a collection agency call and leave message on my phone. I returned the call but they would not tell me who they were until I gave them my ss# and birthdate. I just said no, and he said he had it anyway. I asked why I needed to verify that then, and just replied that I needed to. I did not give that info and he hung up on me. I do have an outstanding debt that I am having a hard time getting them to take anything other than what they want for an amount but this goes to far. Do I have to give them that info for them to identify themselves?
Question: If I am not named on a bank credit card account, not named in the file at the collection agency, but am on a joint bank account to which funds were deposited on my behalf and in my name. can my funds be withdrawn by the collection agency from the joint account and applied to the delinquent bank credit card file which is solely the debt of my husband?
this is just what i was looking for, and its true, debt collectors just take over your life and they try every trick in the book.
i started sending the letters back saying "not at this address" on them months ago, some have stopped but some have just ignored them.
one comapny sent a letter saying i owed £183 to my creditor - when i knew i owed more.....there trick was to get me to reply so they could hit me with the fulla mount.
i do want to know, my creditor and the collection agancy they have used BOTH have sent me letters in the same week, the collectors have sent a letter saying if i dont pay £1,703 within 10days they will take further action. i wish i made that a month let alone 10 days!
they do like to try and take control of you, i have been signed off work for months in the past due to stress they have caused me. now there starting again. is what there doing breaking the law??
i know they can be done for harassment, i have threatened a few of them in the past with this in writing and they just ignore it.
i know i am who there looking for, and i know im wrong to send the letters back to them saying im not, they sent a letter back saying they have investigated and found i am the person there looking for.....which i cant understand as they have no power to gain access to any information as i believe?
are they breaking the law by sending this letter?
my creditior (my old bank) robbed me blind with back charges, fee's, stole money from my when i got my PPI they took it back when instructed not to, so technically i didnt get my PPI back, they over drew my account by 73p once and charged me £178 for that. they didnt care even when i wrote to them and rang them. so in turn i just refused to pay them a single penny more, i figured the money they robbed off me over the years they can use that to pay my debt back. they robbed thousands off me. so i moved away and changed my bank.
stupidly, after moving, one collection company contacted me for a debt that im currently paying off, so now i know this is how the rest are following me, i tell them what im going to pay they dont order me, one tried and i told them straight its my offer or nothing, now though im working, im getting much less than the taxable wage amount, and i cant find anymore work, yet im being bombarded with letters from these TRASH comapines who send me there JUNK mail.
is what there doing breaking the law??
I cosigned a loan for an ex. He never paid the debt. This was 8 years ago. I thought that the SOL had passed, but its still on my credit report. HELP
some can take up to ten years and i hear some companies are buying accounts after the time has passed and it starts all over again
I have just recently been contacted by a collection agency that has informed me that I owe Bell Canada 1900.00 from 9 years ago. I know that I have never received a bill of that size from Bell and I paid the final bill from them when I closed my account 9 years ago. I have not had a bill, a notice, a call, nothing on any credit reports in 9 years. Unfortunately after 9 years I also have no proof that I paid the last bill. I usually hang on to paper work for a long time but not that long. So this collection agency is now threatening to sue me on behalf of the company that bought out the debt. I have told them that I will not claim responsibility for this and that I will not agree to pay for an account that I paid for and closed 9 years ago. Also I have received nothing in writing from this collection agency. Can they actually sue me for this? I feel kind of stripped down because I have nothing to prove my case. It's my word against theirs. Please help.
What a great article!
After a really nasty and expensive divorce I had 3 cards with balances. After losing my job I was able to work out a lower interest rate on 2 cards. The third, was asking for $350 and wouldn't consider lowering their 26% interest. Needless to say after struggling to make payments, I couldn't after a while and it's gone to a collection agency. They are so rude and bullying. They wanted the whole balance at first and told me to get it from a family member. Out of terror I said I might be able to pay $60 a month. They said that was not enough and to find the whole amount. When I checked my numbers I realized I couldn't pay anything right now. Then they called again to say they'd take it! I said I can't do it right now. Well, you can imagine what happen next. After an earful he hung up on me.
They seem pissed that I am current with my other bills but not them calling it preferential payments. But since reading your article I'm wondering if it's worth paying each month. I owed $8,000 but with interest it's now 11,000! I don't have a job and I'm a single mother of 2 I rent and I don't own ANYTHING. My only income is benefits. Would it be better to wait and try to settle for a lower amount or pay them monthly for the next 16 years? I don't want to go to court I have nothing to pay them with right now.
Hello:
This site is AWESOME!! I do have a few questions though. I am currently living overseas and have a CAnadian CC and have been thinking bout never returning to Canada to live and am wondering what options I have to not pay back the owing debt on my current CC? Can I just leave it and forget all items in CAnada? Or do I have to file for bankruptcy? If I do not file for Bankruptcy does my credit score remain low and for how long? I am pretty much unreachable to anyone in Canada (excluding family) so I need to knwo what my best options are??
Thanks
MIKE
Very useful info. I wish I would have read those BEFORE I agreed to any payment plan. Good knowledge for the future though. Thank you!!!
I was working on negotiating an amount with a Capital One collections agency---and all of a sudden they tell me I am with legal and to call another number. They were almost ready to accept $2500 on a over $7000 debt but now I don't know what will happen now that I am sent to a lawyer's office now. Can I negotiate with the lawyer or will they want the full amount or I have to go to court? SHould I get a lawyer although I don't want that added expense either? Not sure where I stand here but I for sure don't want to pay close to the full amount. I can't afford it anyways. Any advice here would be helpful. Thanks!
Hi Ben89. The original creditor does not have to deal with you if they choose not to, which is why they hired a collection agency. You also do not have to deal with the collection agency. It's simply a battle of wills. You can always just send your payment to the original creditor to see if they will take it (most likely they will because it's pretty foolish to refuse a payment), just make sure that you document it, and send it with the correct file number. I'm not aware of anyone being sued by payday loans
Hi Down On Luck, thanks for the comment and the lovely compliment. I hope your luck improves soon...
Hi confused, thanks for your comment. In Ontario Canada, a collection agency must, by law, send you a notice that they have taken over handling your debt for the creditor at least 6 days before calling you. Most collection agents like to skip this required step, and head straight to intimidating telephone calls.
If you want to pay the debt, but don't want to pay the amount they are asking, then continue to insist that they send you a statement of account for that debt. They don't have to provide such, but you can always ask. Of course if you end up in court you can request this accounting of your debt.
You are entitled to ask the collection agency and the creditor to take you to court for the debt they believe you owe, but most creditors will not do this. They rarely sue for small sums. Imagine if you will the huge legal costs for them if they took the hundreds if not thousand of debtors who owe them money to court. So instead they will continue to try to get you to pay up by using the collection agencies. They do this because collections are most times successful, cost only pennies on the dollar, the stigma attached to being in collections is degrading, and also because of the annoyance of being hounded by the collectors.
You do not have to pay a collection agent, if you have not been ordered to do so by the court, but if you say you want to pay your debt, then request the statement of account from the original creditor and pay them directly.
You may always take the matter to court yourself without waiting for them to do so, in order to have a judge determine what you should pay and how much you owe. This will cost you a bit, but the matter would be cleared up fairly quickly.
I cannot tell you what to do confused, that is a decision you must make for yourself based on all the available information.
Hi Annette, thanks for the comment. Frankly I would not give out my SIN to anyone over the phone without absolute proof positive with whom I was dealing. Plus if the collector wouldn't identify them-self without you giving them your SIN, that sounds WAY suspicious. I can't say I've ever heard of any collector needing you to confirm your identity with only your SIN.
Try not to get stressed out about the debt. If you are dealing with idiot collectors they will push hard for the max payment they can get. That's their job. To squeeze you for as much as they can, including full payment (that's when they get their money).
Stick to your guns, stay calm, and pay them only what you can afford without crippling yourself. Just ignore their talk, and send the payment off with the correct id. They will accept it, and keep trying to get more from you.
Hi bubbahgamah, thanks for your comment. First off, collection agents cannot go into your bank account for payments, unless you have given them permission to do so.
A simple answer to your question (because there are so many answers depending upon the specific situation), even if the debt is not yours and solely that of your husband, where payment for the debt is to be made from your joint bank account, full payment for the debt can still be withdrawn from it. Why? A joint account just means it belongs to two or more people who have access to it, but the division of available funds, or who put the funds in and who takes it out is of little importance except where documents curtail it or legal or court judgment divide it.
Anyway, you may want to safeguard your 50% of the funds if you don't want it to be used for the debt.
Hi Dave63, thanks for leaving a comment. Um Dave, because you state funds in pounds and pence, I'm guessing your situation may be from the UK. Unfortunately I'm not aware of the laws there, but you seem to be taking charge of your situation, and not letting collectors push you around. Good for you.
Unfortunately here in Canada, collectors can bombard you with calls and mail to try to get you to pay. A lot of information can be found out about one through our SIN, driver's licence, credit bureau files, and other collection agents. It's amazing how little privacy we have and how much of our lives publicly available. Hmmm
Hi Katkan, thanks for the comment. If a debt occurred before January 2004, the limitation period for taking the matter to court was six (6) years with some exceptions. If your debt is over 8 years old, it is up to you to contact the credit bureaus to have them remove those old debts from their files. Don't count on them removing it for you...
Hi Kata68, thanks for taking the time to comment. If the bill is from nine (9) years ago, they cannot take you to court (cannot sue you) for it. The statute of limitations prohibits it. They are just bluffing to scare you. Moreover, the fact that they don't want to provide you with any info about it says plenty. Consider calling them on that bluff. Also check the credit bureau to see if they have made any inquiries on your credit file, and if there is a collection inquiry matching them, insist the credit bureau remove the inquiry as that account is more than 9 years old.
Hi Fran, thanks for your comment and the compliment. You know, my motto is always "only pay what you can comfortably afford," because otherwise you usually end up falling far behind or not paying at all.
If you believe you can afford small payments, then pay that. If at a later time you believe you can make larger payments, then do that. If you believe that you can negotiate a settlement that you can pay off, do that.
I'm strong on settlements, because it gets rid of those nasty collection critters altogether. However, you must choose to do what you think is best for you and your family. Just don't let them bully you. Good luck...
Hi Mike, thanks for leaving a comment and the compliment. Your comment is rather complicated to answer, but if you have no intentions to ever return to Canada, then your credit and debts matters are rather pointless.
However, debt stays on your credit record for up to 10 years depending in which province you live. Declaring bankruptcy for the first time will clear all your debts, with some exceptions, but you must remain in Canada during the 9 months (could be longer too) discharge period. Bankruptcy stays on your credit record for 7 years.
Hi Crystal, thanks for the compliment, and leaving a comment :D
Hi Scott (Ontario), thanks for the comment. Without knowing what payment they will ask of you, I don't think much has changed. Consider still negotiating your $2500 settlement amount with the "lawyer".
Seems to me that passing you to the lawyer is just a ploy to get you to increase the amount you are willing to pay as the collector you were dealing with couldn't get you to budge, and they think that if you are scared into dealing with a lawyer you will pay more.
Hiring yourself a lawyer at this point seems to me to be putting the cart before the horse. Be assured that if they were going to take you to court, you would get a statement of claim sent to your home address. Moreover, if you went to court, you would just tell the judge the same thing anyway, that $2500 is the most that you can afford. Unless you have lots of assets or a great paying job, they really can't get more from you at court.
Wow CallMeFoxxy ... this is a very thorough and informative hub article on dealing with collection agencies in Ontario. Voting this Up + Useful!
For people in the USA who are reading this hub, make sure you know & understand your rights under the FDCPA (Fair Debt Collection Practices Act) and the SOL (Statute of Limitations) for the state you live in.
All this info is amazing. In Ontario, I have several collection agencies have been contacting me. The one thing that was still active on my credit report was settled since it affected our mortgage. Nothing that I'm being called about is on my credit report (some used to be but have dropped off). Any debt I had has been longer than the SOL (other than the one credit card that I have now, which is up to date). Other than the annoyance of the phone calls, can I ignore them since they are no longer valid?
Thanks for any help! Cheers!
Thanks for all the info.
I have one credit card that is current, and completely up to date, one that was settled in the last month since it interfered with a mortgage app. Now I have several collection agencies calling regarding old debts which have fallen off my credit report and are well beyond the SOL for Ontario. Other than the annoying calls, am I in the clear to ignore them? It would not be legal to sue me for them, would it? And since nothing would be more than $2000, it wouldn't be worth it to pursue, I would assume.
I would appreciate your input. Thanks in advance
Hi,
I have a debt from another country but are living in Ontario. It's over 10 years old and now there's a Canadian collection agency harassing me about it. Can they take me to court in Canada, even if the debt is from another country and older than 10 years?
Thanks for a great forum.
Dear Foxxy... I am now concerned, I had a debt with Bell Canada for $300 that went into collections in 2000\2001, and ruined my credit, I made one small payment toward it in 2002 and nothing and no correspondance or contact since, just decided to build positive credit to bury it. 10 years later I have excellent credit now, mortgage, credit cards paid up, etc.
I closed a 10 year old Bell acct in my wifes maiden name, not mine with Bell two months ago, some confusion with billing, unbelievably a small amount of $11 went into collections and I received a letter, I called Bell and gave my name & had them remove the charge & asked them to contact that Collection agency that sent me the letter for the $11 to ensure it did not hit my credit score and was removed.. Now two weeks later, after that mixup was resolved, I get a letter from a different Collection agency saying they have been authorized to settle my account from this 10 year old unpaid debt, stating I now owe $653 (interest) with payment options of 40% of the total and the rest forgivin if paid by the end of the month or a payment plan. Am I in for harrasment phone calls and additional letters if I ignore...??? I am not paying or acknowledging it, is this the best course of action, I want to preserve my credit rating, and do they have some way they linked my name from that recent $11 mixup???? Please advise
Really great article with a lot of valuable information. Collection Agencies can be beasts. I recently had a night mare of a time with a collection agency over a $497 debt that I did not owe. It was a person with my same name and some how they thought it was me. I still have not got it fully cleaned up but I am continuing to work on it. I found it on my credit report about the same time the collection agency started to harass me. And like I said it was a person in another state with my same name but different social security number and birth date.
I caution everyone to check your credit report. You may find some serious mistakes just as I did.
This Hub Page gives great information and you should read and study it carefully.
Hi El Ray, thanks much for the vote up, useful vote, compliment and for leaving your comment... They're appreciated :D
Hi drmarvin2k5, thanks for leaving a comment and the compliment.
Your thoughts are sound. Collection agencies cannot pursue debts in court if they are stats barred, and as long as they are not re-acknowledged (which would restart the statute time clock). You might want to keep a keen eye on your credit reports to make sure that the credit bureaus don't return the collection agency inquiries and/or debts back on the inquiry section or elsewhere on your reports. Might I suggest an answering machine for the upcoming deluge of annoying calls, lol.
Hi Limpan, thanks for leaving your comment.
It may be that a debt incurred in another country may be discharged (ended) by the the laws of Ontario, but it may not. Your best bet would be to consult a competent lawyer about your specific situation.
Hi Argyle123, thanks for the comment.
I'm curious, why would a collection agency send YOU a letter about a bill that was in your wife's maiden name?
Anyway, it doesn't really sound like any bill mix-up to me, but rather a nice shot-in-dark for that collection agency. Unfortunately, because you paid a stats barred, old debt, I guess the new collectors expect you will do the same again: especially with such a juicy deal of 60% off. Of course, 40% payment on a practically impossible to collect, old debt is indeed a very nice payday net for a collection agency.
If you choose not to pay it, you will more than likely get some phone calls. As I said to another commenter, consider an answering machine, or send them a simple dispute letter to try to stop the calls (but it may just be passed to another collector and the calls wills start again). You can see an example of a dispute letter in my article http://callmefoxxy.hubpages.com/hub/Collection-Age .
There is a seven year reporting time at the credit bureaus for bad debts, and three years for collection agency inquiries, after which time the debt falls off your credit report and is out of sight. Just keep in mind that the collectors can hound you forever for a debt at this time the way the law is here in Ontario.
Keep your eye on your credit report to make sure that the bureaus are reporting properly. Check out my article http://callmefoxxy.com/correct-and-repair-your-cre for more detailed info on credit report repairs. Oh yes, and since you called and updated your info in Bell's files (to correct the so-called mix-up), that update is available to the hired collection agencies.
Hi crazyhorsesghost, thanks for stopping by and leaving a comment. Truly, collection agents can be beasts... we just need to learn how to tame, or if not, break the animal.
Your very welcome and yes they can be something else.
Thanks so much for the answer. It certainly puts me more at ease. Kudos for all your hard work.
Hello Foxxy
I really love your hub. It's helped me alot and I'm glad I found you! I have a credit card that I couldn't pay and it went to a collection agency. I want to settle it(in the near future) but there is one thing confusing me. The collection agency said I owe 8400.00. They are calling non-stop. The thing is; I'm still getting statements from the credit card company and they're adding 200 in interest each month. The last statement was 9800. What gives? Doesn't the interest stop when it is sent to a collection agency? Why am I still getting statements and who's amount is correct? the 8400 from the collection agency or the last statement from the c card company? So confused at this rate they'll have my first born!
Hello foxxy!Thank you for all the good info you provided, it helped a lot. I was wondering if you can help me with this problem i have in regards to this debt collection agency (ABA) which i was paying for the past 2 years. Well i guess you can say that i finally realized that this wannabe debt collector was not legit. I stop paying them because i had asked them a couple of times of a statement showing how much i have paid and i wanted to know if i was done but they would never send me one, which was wierd. The only reason i paid them was because i did owe this debt and they knew a lot of my info."I know that was real dumb of me". I looked up the name in BBB and there is no sign that this is a ligimate comp. It looks like they are not legitimate but i am still not sure. Can you let me know what is the best way to handle this? I can do chargebacks since they would automatic take it out of my account, if you can please give me some advice, thanks in advance.
I'm still a little lost in all this. The information is great but I have heard there are exceptions to student loans. I have a Manitoba and Federal Student Loan last used from 2000. It eventually went to collections. I have been successful at avoiding them from 2008 until just recently. What can or should I do now besides getting a new number (which I don't give out to anyone except close friends and family, which is a rather short and well-informed list)?
@drmarvin2k5: glad it was useful/helpful, and thanks for the kudos :)
Hi Foxxy, I am sure glad I found your article. I'm not working and got a couple of months behind on my phone bill and they have already sent it to a collection agency who is demanding the payment in full, despite my offer to pay a small amount each month. Anyways I was getting all stressed out until I saw your article which provides a lot of information about collection agencies and my rights as a consumer. Take care and keep up the great work.
Very good information. Thanks for sharing!
Hi foxy, You are very helfull in here i would like to ask you this , the collecation agency going to charge my visa card of for old debt 732,17 tomorrow i asked them for agreement they refused to send me one unless they receive my payment tomorrow from my visa ?so what shall i do if i paid in full and may be will never send me any proof or PIF letter?
Thanks for the great info!
I'm having some financial issues, what with being in college and all.
Hi Foxxy
Thanks for the information. I'm being sued righ now by a collection agency for a 10,0000 canadian tire mc . I told them over and over I don't have a job, money, a rich relative or property. I'd just liketo know what you would do. thanx
Hi there, i found this article very intersting. I had my card stolen back in 2010 and had told my bank this i had alot of money being spent on the card.. i found out maybe after a week. my bank would not stop the interest and the repayment went up even higher to about £1900. i thought they had sorted out the situation and case was closed. then after a year i started getting harrased by debt agencies. i cant speak to my bank about the matter because they say the case has been passed on and they dont have access to my account. i had changed houses and gave the debt agency my new address but they keep writing letters to the old one. i dont even recieve the letters but the residents in the old address have told me they have sent back a few letters that have be sent out to me. i have writen to so many debt agencies saying i had my card stolen then after a few months a different debt agency contact me. I dont know what to do.
if any one can give me advise id appreciate it. Thank you.
I live in Alberta Canada I am 25000 in debt to 6 different lenders.Average debt 3 to 5000 I was layed off and unable to pay minimum payments.I tried to make smaller payments and they said they will take anything but WONT stop escalating their collection tactics so even though I was making small payments they moved my account to their collections department and I was getting multiple calls threats etc everyday.I stopped paying them the small payment as my credit is now ruined for 6 or 7 years anyway.I have not payed or given a written acknowledgment of these debts for 17 months due to being out of work and the fact that they were demanding full payment so in 7 months I will have reached the two year mark and the SOL will have kicked in. So my question is based on the info Ive given you do you think any of these 6 will sue me knowing the two year mark is approaching and knowing there are 6 of them all after the same persons money.Also if I do talk to them after the two year mark is it smart to let them know Im aware that they cant get a garnish judgment against me or is it better to just ignore them.I know your answers are not legal advice but any info would be appreciated thanks.
Good Evening,
Thank you for taking the time to create such an informative and helpful article, as well as all the time and dedication you are putting in to provide further assistance to all those seeking it here in the comments area.
I have just received a phone call from a collection agency calling on behalf of a company called Active Capital. They are claiming that they have bought a debt I owed to Bell Canada dating back to Sept.16,2002 in the amount of $555.64!! I have no recollection of the phone number they provided, I have no recollection of any outstanding debt with Bell, the only info they have is the first initial and last name, but I have a fairly common name so that isn't enough for me to accept that this is my debt. I asked them if they have any address history for this debt but they said they don't. I told them that i will have to do my own research into this matter as I don't have enough satisfactory into to acknowledge this debt as mine and I am not going to pay something that i don't owe. The agent mentioned that if i settled by this Friday I would only have to pay $200! Classic.
My question to you is: am I correct to assume that this matter is well within the SOL and therefore they cannot sue me for this alleged debt?
Any input/insight is greatly appreciated.
Jonesy
christy 15 months ago
I sure need this article because I have allowed these people to run my life for too long. It's time I stood up. Hey,thanks callmefoxxy oh mighty sword. Good hub and well appreciated.