Hi,
This is in reference to a consumer debt by the way. I have read that the Ontartio sTatute law was modified
Such that any debt as of jan 1 2004 was "sue-able" within 2 years , any debt before that was "sue-able" for up to 6 years.
Is that correct?

Also, assuming I encounted a debt in Sept 2003, and my last acknowledgement of debt/payment was done in March 2004, given that I have had absolutely no contact with the collection agency, does my debt fall under the 2 year (reason is that the counter restarts each time you make a payment/acknolwedge debt).. so the counter restarted in March.. and given the new laws.. now falls under the 2 yr rule).
Is my understanding correct?

Thirdly, does the Statute apply to only the collection agency or also the original debtor. By this I mean that if my original debt was to Company XYZ and they gave the collection responsilibility to Agency ABC, after 2 years of non-contact/payment/acknoledgement, have both of them lost the right to sue me?

Which offcourse brings me to my next question. When the agencies lose the right to sue as per the Statute, do they also lose the right to garnish/place liens on houses/ repossess property ( I am assuming these can only be done via court order and since they can't sue, they can't obtain a court order) .


Lastly, is it not true that the outstanding collection items fall off the credit bureau report after 6 years? So theortiecally, in 2009, I should be clean?

Any help is appreciated.
Thanks
Syed

Hello Syed,

Yes, that is correct.


Yes your understanding is correct.

So your last missed payment was in March 2004?

The SOL starts when your contract is first breached (and they realize it). If you are suppose to be sending the collection agency payments of, lets says $100/month, and then in the month of March, you don’t send your payment to them, they then know you have defaulted and the clock starts.


They are all considered the same person in a sense.

The original debtor simply signed over their rights to the collection agency. It is treated the same as if they had never done so. 2 years since last missed payment/default from YOUR (customer’s) point of view.


Correct. To get a lien, garnishment, etc, you need a court order to do so. But, before you can get a court order for such, they will need a judgement against you. They can not get a judgment since the SOL has expired.


I believe it is 6 years.

If your last default was in March 2004, 6 years would make it 2010.


I just want to add this.

While the SOL does apply, you still legally owe the debt. However, they cannot use the court system to come after you because of the statute.

However, IF you reaffirm the debt with them, the clock starts all over again.

Example, 3 years from now they call you up and tell you that you owe them money. You tell them that in fact you do, and maybe even send them money. The SOL will start all over at that point.

Hi
Thanks for the above response.
There is still one grey area though, and would appreciate some insight on this.


I went to equifax website
http://www.equifax.com/EFX_Canada/co..._e.html#ques12


Near the end, and I quote

COLLECTION ACCOUNTS: A collection account under public records will automatically purge from the system six (6) years from the date of last activity.


I would like to know what the DATE of last activity is. I have on collection an account which I made payments to last in March 04. However, on a recent credit history check, it seems that the date of last activity was reent up to 2006. What activity is this? If this goes on, then theoretically, 6 years will never pass.

Thanks

So the last time you made a payment to this account was in March 2004 and the last time you made a purchase with this account was in March 2004?

If that is the case, then get a detailed look and find out what “activity” in 2006 they are referring to.

Hello
This account which has gone into collection occurred with a car rental company. Last payment I made to collection agency handling this account was Mar 2004. So it would not be poosible to make a purchase with account.

You mentioned that I Should get a "detailed" look. Is there something specific apart from the 24$ reports at equifax.ca ?

I defaulted on my credit cards in February/March 2007, after my ex-fiancee ran my credit cards up to $14,000, then bailed. In the nearly three and a half years since then, I haven't acknowledged ANY such debts, nor have I answered ANY of the phone calls from several different collection agencies.

Now a lawyer from Richmond Hill, ON, has sent me a letter threatening to sue me (in Richmond Hill Small Claims Court... I live in Ottawa, duh!) "to reclaim funds owed to his client" (hereinafter referred by me to as "Shylock"). I told him PRECISELY where to stick it, because the 2 year statute of limitations passed nearly a year and a half ago.

I'm guessing I won't be hearing from the lawyer again anytime soon.

Basically, if you have NEVER acknowledged the debt, NEVER entered into any agreement to repay all/part and NEVER made any payments, whole/part since the original default, they can't sue you once the two year anniversary of said default passes. They can continue hassling you about it for many years to come, but who gives a darn? Once that two year statute of limitations passes, they're just "paper tigers."

Eventually the bad debt will be dropped from credit reporting agencies after six years, after which time you can re-establish good credit.

Even a 2006 "date of last activity" would still be protected by the SOL, so ignore the "paper tigers" and get on with your life.

You've answered a 2006 thread which has been long dead.

By the way, all you had to do was say that the statute had run and hang up.

In 2002 I installed oil furnace for a client. A couple of months later he had some problem with the furnace, I told him that he should check with the manufacture as this should be a warranty claim. Heard nothing from him until last month he sent me a bill for parts etal. Can he make such a claim.

I installed an oil furnace for a client in 2002. Acouple of months later he said he was having trouble with the control. I suggested that he contact the dealer for warranty coverage. Never heard again until a month ago, when sent me a bill for furnace repairs and parts. Does this excede the statue of limitations?

Please stop posting the same question. This should be its own thread and I have asked that it be moved.

If you are in Canada - which is where this is posted - he certainly can bill you. He cannot use the Courts to collect.