I have a credit card debt of $1100. At the moment I am 7 months pregnant and on income assistance. I get 655$ a month and 400$ goes to rent. The rest is for bills and food. I already have to go to the food bank to supplement the groceries I cannot buy.

I talked to the credit card company near the end of August and told them my situation and they seemed more than happy to help me. I looked at my bank account a week and a half later and they had taken 94$ from my account. I called the CC company and they said that the account was no longer with them it was in collections. I did not receive a call or anything warning me that they would take the money. I do not even know if they can do that. Can they?

My bank is BMO and the credit card is a mosaic mastercard. I live in Canada.

Someone suggested to tell them I am in poverty. Is there a way I could get the money back?(highly unlikely, I know) Should I stop direct deposit of my cheques? Would it help for me to call the agency and tell them my situation or would they not care?

I am extremely emotional right now and do not think it the best idea to call them without planning what I will say to them. I think that is all for now, thank you so much in advance!

The credit card company nor the bank have any legal obligation to treat you fairly because you are in a bad way at the moment. None of these companies are going to give you a break, because the people you talk to have no control over company policies. Hopefully, someone here has more knowledge of the Canadian system and can tell you who can actually help you. I am very sorry for your situation, but unfortunately compassion and sympathy does not turn a profit.

This site may be of some help:

Solutions Credit Counselling

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Originally Posted by stresst

I have a credit card debt of $1100. At the moment i am 7 months pregnant and on income assistance. i get 655$ a month and 400$ goes to rent. the rest is for bills and food. I already have to go to the food bank to supplement the groceries I cannot buy.

I talked to the credit card company near the end of August and told them my situation and they seemed more than happy to help me. I looked at my bank account a week and a half later and they had taken 94$ from my account. I called the CC company and they said that the account was no longer with them it was in collections. I did not recieve a call or anything warning me that they would take the money. I do not even know if they can do that. Can they?

My bank is BMO and the credit card is a mosaic mastercard. I live in Canada.

Someone suggested to tell them I am in poverty. Is there a way i could get the money back?(highly unlikely, I know) Should I stop direct deposit of my cheques? Would it help for me to call the agency and tell them my situation or would they not care?

I am extremely emotional right now and do not think it the best idea to call them without planning what i will say to them. I think that is all for now, thank you so much in advance!

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The Bank Act in Canada provides the bank or its agent with the right of SET-OFF. This means if you owe the bank (Mosaic MC) and the bank owes you (funds on deposit). The BMO has the right to apply one against the other without notice. This is a practice used by collection departments and collection agencies to recover funds quickly and to get your attention. Change banks immediately. BMO cannot do this if your money is in another bank.

However, if any part of these funds comes from social assistance, the funds according to the provincial legislation under which the funds are provided usually have a clause that states that the funds are not subject to seizure or garnishment even if they are in an account. It is the banks obligation to return the funds. Best bet is to contact the social assistance provider and get a copy of the pertinent legislation, send it to the bank and demand your money back.

If you are an Ontario resident, the Ontario Works Act which provides basic assistance has such a clause.

But if BMO passed the file to a separate collection agency don't they have to win in court before they can take funds from your account?

Can anyone advise on this, that was my understanding.

BMO is the creditor. The Collection Agency is their agent. When the collection agency directs BMO to take money out of the account, it is as if BMO is taking the money out of the account under the right to Set-Off. Very simple really.