I live in Toronto, Canada and i purchased something back in 2001. I had lost my job and didnt go back to work until 1 1/2 yrs ago and the company bugged me by calling asking for money right up until about 1 1/2 yrs ago. I recieved a phone call tonight by a credit company (HSBC) saying that they want to settle this and if i dont comply they are taking me to court to garnish my wages. Can they do this after 6 yrs? I had also took out an extra contract with them in case i had lost my job and could not pay in which i brought up about 3 1/2 yrs ago, In which they had told me i could not use as it was too late. What is my legal rights as this has been 6 yrs in July?

Iknowalotofstuff

The SOL in Ontario is 2 years for any debt created after January 1, 2001 or where the last payment or written acknowledgment of the debt was after that date. Any debt outside of this window has a 6 year limitation period. A limitation period only prevents a creditor from using legal action as the instrument of collection. It does not extinguish the debt and this is why the collector is calling. They can bug you forever if they chose. If you write to them or make any form of payment, a new limitation period starts. Oral communication does not restart the SOL clock. Do not write or make a payment and wait them out. There bark is worse than their bite. I would tell them to provide proof that the debt is not statute barred before making any decision to deal with this matter.