Personal Finance

Canada Debt Collection Reopened

  • Last Updated:
  • Aug 17th, 2019 9:39 am
[OP]
Newbie
Aug 13, 2019
2 posts
1 upvote

Canada Debt Collection Reopened

With in the past year I've been making an effort to improve my credit score and financial situation, I have paid off and eliminated many of my debts and managed to raise my credit score by almost 100 points. I have just used a free credit score website mogo.ca, but recently been given two free years of transunion because of a capital one information breach and was checking my credit report when I noticed a debt I had forgotten about from over 2 years ago has been reopened on the 23rd of last month. The debt is small from a pay day loa Centre and I had forgot all about it, but it has been reopened after the two year statute of limitations in ontario, being originally opened in February of 2017. I made no indication of intent to pay to them or made no payment, so can they legally reopen this collection when it's been over two years?
6 replies
Sr. Member
May 16, 2017
680 posts
671 upvotes
Depends what you mean by reopened? Is it the same collection agency and has the date of delinquency/charge-off been updated?

The Limitations Act only applies to the ability to sue someone for the debt; the collection will stay on your credit report for 6 years.

If the collection was falsely updated that I believe is a breach under Consumer Protection laws and regulations not the Limitations Act, and there can be significant fines for false reports to a Credit Bureau.

Also, the Limitations Act does not discharge the debt - it just means you can't be sued for it.
Deal Fanatic
User avatar
Jan 31, 2006
5190 posts
816 upvotes
Toronto
Avanmaster wrote:
Aug 14th, 2019 7:26 pm
With in the past year I've been making an effort to improve my credit score and financial situation, I have paid off and eliminated many of my debts and managed to raise my credit score by almost 100 points. I have just used a free credit score website mogo.ca, but recently been given two free years of transunion because of a capital one information breach and was checking my credit report when I noticed a debt I had forgotten about from over 2 years ago has been reopened on the 23rd of last month. The debt is small from a pay day loa Centre and I had forgot all about it, but it has been reopened after the two year statute of limitations in ontario, being originally opened in February of 2017. I made no indication of intent to pay to them or made no payment, so can they legally reopen this collection when it's been over two years?
After 2 years they can not sued you in court anymore, but they can still collect from you, after they send a letter asking you to pay. After that they can call you, until you paid it or kept ignoring them until it reach 7 years.
[OP]
Newbie
Aug 13, 2019
2 posts
1 upvote
I logged into there website while updating my passwords without realizing I had debt with them, is that something that would cause them to begin trying to collect again?
Deal Fanatic
User avatar
Jan 31, 2006
5190 posts
816 upvotes
Toronto
Avanmaster wrote:
Aug 15th, 2019 7:53 pm
I logged into there website while updating my passwords without realizing I had debt with them, is that something that would cause them to begin trying to collect again?
They can still collect via harassing you but they can not sued you in court.
Sr. Member
User avatar
Sep 6, 2018
580 posts
472 upvotes
Nova Scotia
Avanmaster wrote:
Aug 15th, 2019 7:53 pm
I logged into there website while updating my passwords without realizing I had debt with them, is that something that would cause them to begin trying to collect again?
Bingo. Whether there is something in their user agreement to stipulate it or not, a site login is as good as answering the phone and confirming your name. Not sure about the legality of reopening the dead debt at the bureaus, but I think this was definitely the trigger.
Newbie
Mar 4, 2015
16 posts
7 upvotes
Unionville, ON
I’ve paid of quite a few collections while repairing my credit.

Every time that I paid the debt DIRECTLY to the original creditor the collection account falls off soon after because the collection company didn’t actually collect the debt.

Your best bet would be to ignore the collection company - don’t make any payments to them and call the payday loan place you owe and send them a direct payment for the full amount.

The collection should come off shortly after. If you pay the collection company the collection will be marked as paid and will sit on your report for 6 years. I learned this by accident because I had some collections and I paid some of the collectors and some right to the lenders. All the ones I paid to the lenders fell off. I wish I had realized because I could have paid all of them directly to the lender and had them all fall off

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