Ask Me Help Desk - About Collection Agencies

Do US collection agencies have jurisdiction in Canada? Do US judgements have any effect on debtors from Canada?

The term jurisdiction is really synonymous with the word "power". Any court possesses jurisdiction over matters only to the extent granted to it by the Constitution, or legislation of the sovereignty on behalf of which it functions. The question of whether a given court has the power to determine a jurisdictional question is itself a jurisdictional question. Such a legal question is referred to as "jurisdiction to determine jurisdiction."

Subject matter jurisdiction is the court's authority to decide the issue in controversy such as a contracts issue, or a civil rights issue. State courts have general jurisdiction, meaning that they can hear any controversy except those prohibited by state law (some states, for example, deny subject matter jurisdiction for a case that does not involve state citizens and did not take place in the state) and those allocated to federal courts of exclusive jurisdiction such as bankruptcy issues (see 28 U.S.C. § 1334). Federal courts have limited jurisdiction in that they can only hear cases that fall both within the scope defined by the Constitution in Article III Section 2 (LII: Constitution) and Congressional statutes (See 28 U.S.C. §1251, §1253, §1331, §1332).

Territorial jurisdiction is the court's power to bind the parties to the action.

This law determines the scope of federal and state court power. State court territorial jurisdiction is determined by the Due Process Clause of the Constitution's Fourteenth Amendment (LII: Constitution) and the federal court territorial jurisdiction is determined by the Due Process Clause of the Constitution's Fifth Amendment (LII: Constitution.

Ok, let me re-phrase my original question. Do US collection agencies have the right to collect from debtors in Canada? How common is US collection agencies pursuing the collection of debts in Canada?

US collection agencies do not have jurisdiction in Canada unless they have a office in Canada. Canadian do not fall under US jurisdiction, US court only have jurisdiction over people inside their country.

However the World Court would be able to obtain jurisdiction with the Canadian Court approval. Most unlikely they would do collections.

If you get a letter from them refuse for cause, lack of jurisdiction and send it back disputing the alleged debt.

ANY creditor has the right to pursue ANY debtor, whether it crosses international or regional areas. If a debtor incurs a debt, then the owner of that debt has the right to attempt collection no matter where the debtor is.

However, the legal means that the creditor can use may be affect by jurisdictional issues. For example; a judgement obtained in a US state would not be honored if served on a Canadian bank. That doesn't mean the creditor can't engage the services of a Canadian agency to assist in the collection.

What lengths a creditor will go to collect on a debt depends on the amount of debt vs the cost of collection.

Quote:

Originally Posted by ScottGem

For example; a judgment obtained in a US state would not be honored if served on a Canadian bank.

Hello new user:

My friend Scott is right. However, if the Canadian bank you have your money in also happens to have a branch in the US, then your accounts would be, In my opinion, vulnerable. Indeed, most Canadian banks do.

Secondly, I suggest that you borrowed the money from an American company, or it wouldn't be an American collector pursuing you. You weren't concerned with their nationality then?? Maybe that's because it was BEFORE you got the money.

excon

Quote:

Originally Posted by excon

Hello new user:

My friend Scott is right. However, if the Canadian bank you have your money in also happens to have a branch in the US, then your accounts would be, IMHO, vulnerable. Indeed, most Canadian banks do.

Secondly, I suggest that you borrowed the money from an American company, or it wouldn't be an American collector pursuing you. You weren't concerned with their nationality then??? Maybe that's because it was BEFORE you got the money.

excon

No, I didn't borrow any money from an American bank. An American phone company charged me for an extra billing cycle in light of the fact that I had called previously to cancel all services effective a certain date. I disputed the extra charge but I guess they got fed up with arguing with me so now they turned over my account to a collection agency. By the way, my Canadian bank does not have branches in the US. But they do do business in the US, all commercial business that is, e.g.. Stocks, loans, etc. Am I still vulnerable?