statute of limitations in Canada for a personal loan

SLynne · #1 Jul 10, 2007, 09:11 AM

Hello,

What is the statute of limitations in Ontario, Canada for a small personal loan?

For example, I lend someone $300. They dissapear for 5 years and then move back into town. How long from the date of the loan do I have to claim? Lets say the loan took place on Jan 01, 1995?

Thanks.

Lowtax4eva · Jul 10, 2007, 10:55 AM

You couldnt sue them unfortunately, it's about 6 years SOL on loans.

You could get a collection agency if you have proof of the loan. They might not be able to get the money back but could affect this person's credit rating.

CaptainForest · Jul 10, 2007, 02:58 PM

The SOL in Ontario is 6 years for loans prior to Jan 1, 2004 and 2 years on or after Jan. 1, 2004

The SOL would start when the loan became in default.

So if you loaned them the money in 1995 and they had until 1997 to pay you back, the SOL would start in 1997 and would have run until 2003.

SLynne · Jul 11, 2007, 07:32 AM

Thank you for the information it is very helpful.



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