Personal Finance

RBC Visa in Collection

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  • Apr 28th, 2011 3:52 pm
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Newbie
Jun 16, 2010
8 posts
Toronto

RBC Visa in Collection

Hi Everyone,
I need help! My wife and I are separated since 2004. In 1994 she was issued an RBC Visa of which I was the secondary card holder. This was issued in British Columbia and when we moved back to Ontario, the account was transferred here. I dont believe I was co-applicant. In 2006 we sold the house and paid off all debts including the RBC visa. I went to the bank and tried to take my name off the card but was told the primary card holder has to do it and I cant do it myself. She didnt want to. I was stupid enough not to send a letter stating the fact. At the time I didnt think I was liable as I stopped using the card and was not a co-applicant. Since then RBC has sent other cards to my previous adrresses that were never activated and never used. Jump to 2010, the ex-wife declares bankrupcy with a $20,000 debt on the card. She is suffering from a mental illness and alcoholism. RBC collection is going after me. I have yet to response to them but told them on the phone the above circumstance, yet they still threaten legal proceedings , garnishing wages etc..Am I liable for this debt. I will request a copy of the original application from them. I havent receive any statement for years. Before the statement had two different card numbers and two different account numbers. Please help.
14 replies
Deal Expert
User avatar
Feb 9, 2003
15396 posts
1247 upvotes
Langley
If you were a co-applicant, you're liable, if you were a authorized user, you are not liable.

Is the account on you credit report? They may still trash your credit report.

If they have no legal authority to sue, then they can't threaten to sue.

Read this:

http://www.consumerbadcreditguide.com/c ... anada.html

Ask them to verify the debt with you.
Deal Addict
User avatar
Apr 10, 2010
1261 posts
124 upvotes
Donner1993 wrote:
Jun 17th, 2010 12:38 am
Hi Everyone,
I need help! My wife and I are separated since 2004. In 1994 she was issued an RBC Visa of which I was the secondary card holder. This was issued in British Columbia and when we moved back to Ontario, the account was transferred here. I dont believe I was co-applicant. In 2006 we sold the house and paid off all debts including the RBC visa. I went to the bank and tried to take my name off the card but was told the primary card holder has to do it and I cant do it myself. She didnt want to. I was stupid enough not to send a letter stating the fact. At the time I didnt think I was liable as I stopped using the card and was not a co-applicant. Since then RBC has sent other cards to my previous adrresses that were never activated and never used. Jump to 2010, the ex-wife declares bankrupcy with a $20,000 debt on the card. She is suffering from a mental illness and alcoholism. RBC collection is going after me. I have yet to response to them but told them on the phone the above circumstance, yet they still threaten legal proceedings , garnishing wages etc..Am I liable for this debt. I will request a copy of the original application from them. I havent receive any statement for years. Before the statement had two different card numbers and two different account numbers. Please help.
If you are not a co-applicant only a secondary user, you are not liable for it. It doesn't even show on your credit report.

So are you sure you are not a co-applicant?
Newbie
User avatar
Feb 18, 2007
90 posts
2 upvotes
BC
I'll bet you that legally your not liable for it, but the collection agency is trying every avenue to obtain the money. If they are calling you, I'm sure they will try and wreck your credit.
[OP]
Newbie
Jun 16, 2010
8 posts
Toronto
Looks like I m the co applicant on their computer...I am going to request a hard copy of my signature. They sent it to an external legal firm to deal with this. I hav to contact their lawyer. Any advice before I talk to him?
Thanks
Deal Addict
User avatar
Dec 3, 2004
3843 posts
1365 upvotes
Vancouver
First of all, some background information from you on RBC credit cards:

- They are the worst to deal with in Canada. They are the only card company that will consistenty refuse to settle debts for less than top dollar. They always vote NO on consumer proposals, etc.

- They don't sell their debts. The collection agency you are dealing with is only acting under CONTRACT to RBC, they don't actually OWN the account. What this means is that you can deal directly with RBC, despite what the collection agency will tell you.

How I would approach this is simple... tell them you are not liable for the debts and that the card was only your wifes. You were divorced 6 years ago and that is that. The burden of proof is then on them. They CANNOT garnish you wages, or perform any collection actions on you without a court order. So if they choose to take it to court, then you can fight it in court and will likely win.

Where your biggest problem will be is if the VISA is on your credit report... your credit will be tarnished big time by this debt and there is very little you can do about it without being prepared for a big fight. Overall, it sounds like you are probably not liable, but that doesn't mean much nowadays... it seems like our society is changing to a "guilty until proven guilty"
[OP]
Newbie
Jun 16, 2010
8 posts
Toronto
Thanks for all the replies so far. It helps that there are genuine people are trying to help others. Further to this, I checked my credit report and the RBC visa does not show on the report as of today. I will fight them in court if needs be. Can they still place the visa debt on my credit in the future? What would be their process to do this?

THanks.
Sr. Member
Dec 17, 2006
513 posts
45 upvotes
Donner1993 wrote:
Jun 17th, 2010 12:38 am
Hi Everyone,
I dont believe I was co-applicant. I went to the bank and tried to take my name off the card but was told the primary card holder has to do it and I cant do it myself. She didnt want to.
Donner1993 wrote:
Jun 17th, 2010 5:28 pm
Looks like I m the co applicant on their computer..
See the flaw here. First they wouldn't let you make changes to the account but now when primary cardholder owes them money, they are happy to collect from you. :twisted:

Now I also have a RBC visa where I'm the authorized user. However, when I called in once to inquire regarding a benefit, they offered me to switch to a different card product. I asked: "Shouldn't they be speaking to primary cardholder regarding that" but they said "no we can do it right now".

So they seem to blend the two.
Deal Addict
Jan 19, 2006
3859 posts
649 upvotes
Vancouver, BC
Donner1993 wrote:
Jun 17th, 2010 11:20 pm
Thanks for all the replies so far. It helps that there are genuine people are trying to help others. Further to this, I checked my credit report and the RBC visa does not show on the report as of today. I will fight them in court if needs be. Can they still place the visa debt on my credit in the future? What would be their process to do this?

THanks.
Make sure to check both.
Newbie
Jul 10, 2010
1 posts
montreal
I work for RBC Visa collections, so maybe I can clear some things up:

1) If you're a co-applicant on a Visa, it will never show on your credit report or be reflected in your credit score until it is written off. RBC's policy is to write-off debt at 181 days without payment. At that point, it will be an R9 on your credit score (equal to a bankruptcy score). However, you are still 100% liable.

2) If you're divorced, it doesn't matter. Even if the judge ruled that your wife was responsible for the debt, RBC acknowledges this only to the point where this ruling is respected. Meaning that, if she's paying, great, they won't ask you for money, but if she stops the RBC Visa cardholder agreement goes into effect and you become liable for the debt. Also, the divorce in your case doesn't make a difference because your wife declared bankruptcy.

3) It's happened alot where I see clients who were not aware they were co-applicants on their husband's/wife's account. Request a copy of the actual application, that way you can check your signature. Co-applicants have a separate card # from the primary applicant (even though it is 1 account). If you were never sent a card, and there is no usage on your card #, they will remove your name and you will not be held liable...depending on the collector you get. I would, some others might be too lazy to go through the trouble. You can speak to a manager about it.

However, if there is any transaction on your card #, even a magazine subscription or a pack of cigarettes 6 years ago, you'll be held liable.

Your best bet if you were not aware of a card would be to fight your liability based on that. Don't bring up the divorce as they'll just parrot back to you what I've written.

Hope this helps abit :)
Newbie
Apr 27, 2011
1 posts
PORT MOODY
I have a problem, and maybe I'm not the only one. I have a credit card with a balance of about 5000 dollars that I could not pay off I made arrangements with RBC but I have no job and am actively looking for work everyday and I fell behind on the payments and have not been able to pay anything because simply enough I have NO money. What little money I get (beg borrow and steal) I have to use for food and rent or else I'm out on the street. So literally I have nothing.
Anyways the credit card went into collections and I have tried to tell RBC my situation but they don't care its all about the money for them. They send the letters and the latest one said they want to settle for 4200 or we may go to court or to another collection agency. Well sure I would accept the deal but where is 4200 bucks going to come from? In an ideal world I would be working and able to pay off my debts like a normal contributing member of society. So now I have an R9 on my credit report but what I want to know is what happens next? What can RBC do? Will they take me to court? I have no wages so they cannot garnish anything. Right? Any advice or if people are in the same situation could you let me know what you did in this case obviously paying it off would be what I want to do but I have nothing, I have pawned what I could and now I'm in a sinking ship..........Thanks.

Nicole
Deal Addict
Mar 2, 2005
1804 posts
161 upvotes
nicole89 wrote:
Apr 28th, 2011 2:10 pm
I have a problem, and maybe I'm not the only one. I have a credit card with a balance of about 5000 dollars that I could not pay off I made arrangements with RBC but I have no job and am actively looking for work everyday and I fell behind on the payments and have not been able to pay anything because simply enough I have NO money. What little money I get (beg borrow and steal) I have to use for food and rent or else I'm out on the street. So literally I have nothing.
Anyways the credit card went into collections and I have tried to tell RBC my situation but they don't care its all about the money for them. They send the letters and the latest one said they want to settle for 4200 or we may go to court or to another collection agency. Well sure I would accept the deal but where is 4200 bucks going to come from? In an ideal world I would be working and able to pay off my debts like a normal contributing member of society. So now I have an R9 on my credit report but what I want to know is what happens next? What can RBC do? Will they take me to court? I have no wages so they cannot garnish anything. Right? Any advice or if people are in the same situation could you let me know what you did in this case obviously paying it off would be what I want to do but I have nothing, I have pawned what I could and now I'm in a sinking ship..........Thanks.

Nicole
RBC will never forgive your debt. They can take you to court if they choose to do so, and don't think they won't since its a small amount for them. They have law firms on their payroll and therefore it doesn't cost them a whole lot more as such. If you don't show, they will get default judgment. In situations such as yours, declaring bankruptcy is an option if you have other outstanding debt as well. Having said that, it might be your only resort at this time for you. Its something that no responsible citizen wants to go through but while I understand your situation and can sympathize with you, to RBC its just business and they are in the business of making money, not losing it.
Sr. Member
May 6, 2007
672 posts
38 upvotes
nicole89 wrote:
Apr 28th, 2011 2:10 pm
I have a problem, and maybe I'm not the only one. I have a credit card with a balance of about 5000 dollars that I could not pay off I made arrangements with RBC but I have no job and am actively looking for work everyday and I fell behind on the payments and have not been able to pay anything because simply enough I have NO money. What little money I get (beg borrow and steal) I have to use for food and rent or else I'm out on the street. So literally I have nothing.
Anyways the credit card went into collections and I have tried to tell RBC my situation but they don't care its all about the money for them. They send the letters and the latest one said they want to settle for 4200 or we may go to court or to another collection agency. Well sure I would accept the deal but where is 4200 bucks going to come from? In an ideal world I would be working and able to pay off my debts like a normal contributing member of society. So now I have an R9 on my credit report but what I want to know is what happens next? What can RBC do? Will they take me to court? I have no wages so they cannot garnish anything. Right? Any advice or if people are in the same situation could you let me know what you did in this case obviously paying it off would be what I want to do but I have nothing, I have pawned what I could and now I'm in a sinking ship..........Thanks.

Nicole

Get a job and pay it off. Take a job that sounds terrible and you will hate but that pays more money. Tough situations require sucking it up.
Deal Fanatic
User avatar
Jul 4, 2004
6909 posts
340 upvotes
Starry81 wrote:
Jul 11th, 2010 12:29 pm
I work for RBC Visa collections, so maybe I can clear some things up:

1) If you're a co-applicant on a Visa, it will never show on your credit report or be reflected in your credit score until it is written off. RBC's policy is to write-off debt at 181 days without payment. At that point, it will be an R9 on your credit score (equal to a bankruptcy score). However, you are still 100% liable.

2) If you're divorced, it doesn't matter. Even if the judge ruled that your wife was responsible for the debt, RBC acknowledges this only to the point where this ruling is respected. Meaning that, if she's paying, great, they won't ask you for money, but if she stops the RBC Visa cardholder agreement goes into effect and you become liable for the debt. Also, the divorce in your case doesn't make a difference because your wife declared bankruptcy.

3) It's happened alot where I see clients who were not aware they were co-applicants on their husband's/wife's account. Request a copy of the actual application, that way you can check your signature. Co-applicants have a separate card # from the primary applicant (even though it is 1 account). If you were never sent a card, and there is no usage on your card #, they will remove your name and you will not be held liable...depending on the collector you get. I would, some others might be too lazy to go through the trouble. You can speak to a manager about it.

However, if there is any transaction on your card #, even a magazine subscription or a pack of cigarettes 6 years ago, you'll be held liable.

Your best bet if you were not aware of a card would be to fight your liability based on that. Don't bring up the divorce as they'll just parrot back to you what I've written.

Hope this helps abit :)
Thank you for sharing!
Deal Addict
User avatar
Jun 23, 2009
1061 posts
49 upvotes
YUL
I have a RBC Visa with a co-applicant. I've been interested in removing him and know this from speaking to RBC:

- You can take all the debt under your name but cannot remove yourself from the account and stick the co-applicant with the debt.
- The debt only shows in the credit report of the primary, not the co-applicant.
- The primary can limit the credit available to authorized users, but not the co-applicant.
FOR SALE:
Always looking to sell USD for CDN at XE.com's rates.
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