Personal Finance

"Statue of limitation" for Debt in Ontario. A collection story.

  • Last Updated:
  • Jul 12th, 2013 8:50 pm
Tags:
None
[OP]
Newbie
Apr 14, 2008
13 posts

"Statue of limitation" for Debt in Ontario. A collection story.

Recently a very good friend of mine found herself in the spotlights for a debt she had nothing to do with, being harassed and threatened miserably by a Debt collection company (I will give no name because this info is generic anyways).

They called her and DEMANDED PAYMENT on the spot , which is illegal see point 1 on my explanation , and they called hew friend and family totally ignoring the law again p2 , they refused to identify themselves and talked at human level with her trying to intimidate her and if possible cheat their way into getting her money p3 , never stopped calling her even after her begging to be sued and clearly refusing to acknowledge the debt p4.
After digging some more and talking with a friendly paralegal another info surfaced , the debt was older than 2 years so according to the laws in Ontario it was no longer legal for collectors to pursue it unless she admitted the debt in writing p5.

Here is the empowering guide to deal with Collections and I want to stress it that if you have a debt and you can "PAY IT IN FULL" :

1. First contact from Collection Agency should be about establishing your identity and confirming your mailing address. They are bound BY LAW to send a letter with full explanation of the debt , legal owner, and proof that your name is on that account.
2. They can call you Employer or family and friend with the sole purpose of finding your address and phone number. They should not give any details or discuss your financial situation to anybody except you.

3. They have to identify themselves by providing a ONTARIO issued collector number proving that they are allowed to collect in this province. They have to use a professional language and tone and not provide false information. The most common lie is: "if you pay now your credit history will remain the same" This is a lie because they already made a Credit Bureau inquest and left a note regarding the collection which will be completed or not at their will with another note stating that the debt was settled.

4. If you think the whole thing is an error ( in full or partially) or then ask them to stop calling and take you to court in writing and with registered mail. Is the Small claims court ( no lawyer) for up to 10k or superior court if more and in this case you will need a lawyer.

5. SOL. Statue Of Limitation , if the debt is older than 2 years in the province of Ontario it is protected by the SOL. This info apply to debts which discovery is newer than January 1 2004. Debt discovery is the approximate date in time when debtor realised that the debtor will not pay it back the money and usually is the last account activity on that debt , last time you actually paid anything against that account.

i.e. If your last payment was Feb 2004 then starting with March 2006 the debtor can not take you to court anymore regarding that debt nor change the dates in the account.

The collection agency refused to acknowledge that this law even existed but that is part of their unlawful behaviour. I assume that not all Collection Agencies are like that but this was my friends experience.

There is a particular provision in the law that says if the debtor acknowledges the debt in writing or by making any payments toward the debt the SOL in reset ed and it will only apply again in two years from that particular event. There are debtors who just honestly forgot to pay a debt or recently can afford to pay it and want to do the right thing and pay it so in this case the debt is renewed and no longer under the SOL.
In this case if you are unsure of the validity of the claim or other considerations think before you give any acknowledgements or money out and take your time to see what your options. Maybe is time to see a Bankruptcy firm or a insolvency lawyer to guide you through these rough times.

I am sharing this experience with you to empower the consumer going to some rough times and make them realise that they're not left alone in front of a abusive collector and maybe the law is on their side and can protect them.

If you think you've been treated badly by collection agency submit a claim with the consumer protection bureau but ... don't expect them to shut the collectors down as they receive hundreds of these claims daily. Your best defense if to keep yourself legal, pay the debt if it's legitimate or ask them to pursue the claim in courts if you think is not valid. Don't waste your time fighting with them over the phone and try to reach some kind of settlements without a legal binding written agreement from them as if it's not written you can't use it to defend yourself when time comes.
20 replies
Deal Fanatic
User avatar
Oct 10, 2006
7741 posts
79 upvotes
Georgetown
Can you please provide us with your source?
See this button :confused: :confused: Learn how to use it PLEASE ;)
Newbie
Feb 3, 2008
30 posts
Toronto
For reference, it is the Ontario Limitation Act 2002 (went into effect in 2004 on the date OP provided).
Sr. Member
Jun 8, 2007
822 posts
89 upvotes
Mississauga
Statute.

There is no statue.
Deal Addict
User avatar
Jan 1, 2007
1989 posts
198 upvotes
Lol it's statute, you'd think Seinfeld would have eliminated this embarrassing error.
Member
Nov 14, 2006
454 posts
12 upvotes
These collection agencies are making me thristy!
Deal Addict
User avatar
Dec 28, 2004
1702 posts
132 upvotes
Burlington
The statute my apply may apply from to taking to court but it doesn't get it off your credit report.
Deal Addict
May 28, 2007
1019 posts
68 upvotes
If you'd like to share information and make the rest of us consumers aware, how did it happen that collection agencies are going after someone who was not responsible for this debt?

This is what I'd like to know.
Deal Addict
User avatar
Dec 28, 2004
1702 posts
132 upvotes
Burlington
ShopSmart wrote:
Dec 15th, 2008 10:41 pm
If you'd like to share information and make the rest of us consumers aware, how did it happen that collection agencies are going after someone who was not responsible for this debt?

This is what I'd like to know.
This happens semi frequently I believe. I believe it is becoming more problematic as debt recovery companies become more popular.
- Someone stole the person's identity
- Someone wrote down/mistyped the SIN wrong
- Your name or address or DOB is similar to someone that owed the debt
- The debt collector purchased really old debt with incomplete/inaccurate information
- They are trying to scam you by black mailing/bullying or so on you into paying
Newbie
Apr 21, 2013
1 posts
1 upvote
Just a bit of info for people who are being harassed by creditors. Creditors ARE regulated to certain regulations such as:

They may only call between: 8am -9pm Mon - Sat --- They are not allowed to call on Sundays, EVER.

It is your right to request all correspondence be done in writing, but you must send them an e-mail with the reference # or call them (provide reference #) and tell them once they are not authorized to contact you by phone (at home, work or any other place, once they have found your contact info, they have no need to contact any one else requesting information on or about you). This is usually best as there is a thread of the conversation which is always helpful in the long run (because let's face it, I can name 10 different collection agencies in Canada that use lies and terror like tactics to collect, as the collector/agency gets a % of what they are able to collect).

Collection Agents in Canada are NOT allowed to call you at your work. Most companies don't state this directly, but there are many employers who require a credit or background check to gain employment. Calling your work is a deliberate attempt to cause an issue with your employer as a tactic for getting money. Ie. "I will keep calling until you loose your job, and I don't care if you can't pay then, because I will get all your debts and harass you until you pay me."

There are other restrictions on them as well. And I am providing these because many people are not aware of their own rights when it comes to debt. (And for those wondering, I was a debt intake/resolution officer with a large Bankruptcy Trustee firm in Toronto). And what most debt collectors don't realize is that by scaring people, they will more than likely loos the majority of the debt owed when they scare some one to a Trustee office and the debts are settled for much less.

_________________
Know Your Rights
Newbie
Jul 3, 2013
1 posts
MyPaganCentre wrote:
Apr 22nd, 2013 11:11 pm
Just a bit of info for people who are being harassed by creditors. Creditors ARE regulated to certain regulations such as:

They may only call between: 8am -9pm Mon - Sat --- They are not allowed to call on Sundays, EVER.

It is your right to request all correspondence be done in writing, but you must send them an e-mail with the reference # or call them (provide reference #) and tell them once they are not authorized to contact you by phone (at home, work or any other place, once they have found your contact info, they have no need to contact any one else requesting information on or about you). This is usually best as there is a thread of the conversation which is always helpful in the long run (because let's face it, I can name 10 different collection agencies in Canada that use lies and terror like tactics to collect, as the collector/agency gets a % of what they are able to collect).

Collection Agents in Canada are NOT allowed to call you at your work. Most companies don't state this directly, but there are many employers who require a credit or background check to gain employment. Calling your work is a deliberate attempt to cause an issue with your employer as a tactic for getting money. Ie. "I will keep calling until you loose your job, and I don't care if you can't pay then, because I will get all your debts and harass you until you pay me."

There are other restrictions on them as well. And I am providing these because many people are not aware of their own rights when it comes to debt. (And for those wondering, I was a debt intake/resolution officer with a large Bankruptcy Trustee firm in Toronto). And what most debt collectors don't realize is that by scaring people, they will more than likely loos the majority of the debt owed when they scare some one to a Trustee office and the debts are settled for much less.

_________________
Know Your Rights


Wrong! They can call you on Sunday, where are you getting your information?
Sr. Member
Feb 28, 2013
945 posts
78 upvotes
Toronto
Hmm, actually if someone paid right then and there it wouldn't really change their credit score. Some crap on the report would change but, their score would still be garbage because they're an idiot who can't pay their debts. Seriously? How is this such a popular topic here. It's one thing when the debt isn't yours but, entirely different when you screwed up and had something go to collections.

Why shouldn't these degenerates be harassed?
Deal Addict
Aug 12, 2007
2346 posts
230 upvotes
Waterloo
Beans1234 wrote:
Jul 12th, 2013 1:29 am
Why shouldn't these degenerates be harassed?
Depends on your POV. Some might call those people degenrates who continue to loan money at exorbitant rates ( @18% when they receive them at 3-4% ). knowing well that this is a unsustainable rate.
Deal Addict
User avatar
Feb 19, 2010
4375 posts
1020 upvotes
Supahhh wrote:
Jul 12th, 2013 7:48 am
Depends on your POV. Some might call those people degenrates who continue to loan money at exorbitant rates ( @18% when they receive them at 3-4% ). knowing well that this is a unsustainable rate.
So people who borrow money, knowing that they're paying 18% interest, are forced to sign the loan agreement at gun point?

No, didn't think so.
Banned
User avatar
Feb 15, 2008
26318 posts
3157 upvotes
Calgary
Holguinero wrote:
Dec 14th, 2008 11:21 am
Recently a very good friend of mine found herself in the spotlights for a debt she had nothing to do with,
I don't get it -- this 'good friend of mine' had a debt she had "nothing to do with", and you posted a whole bunch of stuff and went through a process to have the debt discharged?

I would have personally called the cops and obtained an order of protection (ie: a restraining order in colloquial terminology) if they persisted in harassing me without laying a Statement of Claim.

And if they laid a Statement of Claim, my Statement of Defense and Counterclaim would have sought costs and damages.
TodayHello wrote:
Oct 16th, 2012 9:06 pm
...The Banks are smarter than you - they have floors full of people whose job it is to read Mark77 posts...
× < >

Top