NOTE: Prior to reading this, please note that I reside in Ontario, Canada. I would appreciate inpur from anyone with knowledge about our system.


Hello,

Myself and my wife have always prided ourselves on living within our means, minimizing debt, and our (up to now) excellent credit rating. This isn't to say that we are swimming in cash or have no debt, just that we have always managed it appropriately.

This has been rocked a little since my wife received a call today from Canadian Bonded Credit that was very threatening and nasty, regarding a supposed debt of $900 owed to GMAC. Apparently, about 5-6 years ago, following a split-up with a former partner in which he returned a leased car, there was a subsequent bill of $900 that has not been paid. The horrible collections woman ludicrously accused my wife of moving and changing her name to avoid the debt (of course, marrying and moving in with a new husband couldn't possibly account for this!).

We have spoken to her former partner (with whom we are friendly and who happens to run a car dealership), who assured us that when he returned the car everything was sorted out. What is more, we have never heard anything about this debt, and my wife has really not been that hard to find. Furthermore,I find it hard to believe it was on our credit bureau 12 months ago when we were approved for our mortgage by BMO at a very good rate.

So here are our quandries:

1. Credit bureau ratings. How can we find out if this is on our credit bureau and if it is there, how do we get it off? How can we prove that we were never given any information about this debt, and even if we can, will that remove it?

2. Do we really owe the $900? We are in the process of trying to contact GMAC, but I am wondering, since this is around the 6-year point, if this is one of those debts that has been sold to the collection agency for pennies after the SOL has run out. If paying this now is only going to make the nasty credit collecters richer then I'm really not prepared to do that, especially since they made my wife so incredibly upset. On the other hand, if it is genuine debt owed to GMAC then I would be willing to pay it if they can show us that it is truly owed and that they tried to reasonably inform my wife of the debt.

I guess the final question is practicality. Even if the debt is bogus or past the SOL, will paying it get rid of any nasty entries on our credit bureau? We don't have any extra money hanging around, but on the other hand, our good credit is worth $900 to us. Can we pay the collection agency this supposed debt on the condition that they ensure this entry is wiped out from our credit bureau information?

Any assistance would be most appreciated.

Tell the agency that called to send you proof of the debt. Contact the credit reporting agencies for copies of your files.

I am going to use the DEBT COLLECTOR DISCLOSURE STATEMENT in the sticky at the top of this forum to find out about the validity of the debt. Can anyone tell me if there is anything specific to Canada/Ontario that I should change. For example, the line "must be completed in accordance with the Fair Debt Collection Practices Act, 15 USC §1692g, applicable portions of Truth in Lending (Regulation Z), 12 CFR 226"" obviously needs to be changed to specify whatever the Ontario legislation is.

Thanks

P.S. GMAC won't talk to us about the debt. They were incredibly rude, saying my wife has been written off as a deadbeat debtor and that they have sold the debt to the collection agency. End of story.

I agree with Scott, ask them to send you proof, in writing.

As to your question about SOL. It will be 6 years.

FYI: 2 years now (for all debt after Jan 1, 2004)

I too have been getting harassing phone calls at all hours of the day including weekends. I have not and will not be answering or returning there call. I previously tried to find what monies I owed last year and got my credit report. The only thing on there was a listing of something that was written off by the company and so paying anything at this point is money going to this company... not the one that the debt originated from. In another year or so it will be past the 7 years so they can call all they want.
The other aspect is, no matter if you paid the debt, it stays with you and on your record for the full 7 years. Your credit rating will not improve or go away so making a payment is just putting money in their pocket. Most companies will eventually write the debt off and there is a benefit to that too,

Good luck eveyone!