Hi - In 2002 I bought a computer and signed a leasing agreement with a company here in Canada - National Leasing. I sent the computer back 3 days later. I did not pay for anything as I thought that by sending it back my debt would be cleared. I applied for a Mortgage in September, was approved and nothing showed on my credit bureau - I applied for a loan this month and now this is showing up as an unpaid debt. Is there a time limit to how long they can collect? My credit bureau says 2100 dollars - I called them and they told me it was 3200 dollars - can they charge what is more on the bureau and do I really owe them anything at all.

Any help would be greatly appreciated!

Best Regards,

Kim

p.s. My home province is Alberta

Check to see what the statute of limitations (SOL) is in your area. It usually runs 2 to 6 years depending on the type of debt. If your statute has expired you are no longer responsible for the debt unless to agrre to pay or make a settlement. That would reopen the statute. Yes they can keep adding on charges and interest on debt for as long as they want. Do you have any proof you renturned they computer? I sure hope so, it will be very important if the statute is still running.

Alberta's Limitations Act: Limitations Act

The SOL is 2 years.

However, that is just a basic limitation period.

Since this loan might have in fact involved collateral, the laws might be different. Give a read through the Limitations Act, especially section 3.

Furthermore, what happened when your returned the computer, do you have any proof od that?

Also, read your computer lease and see what the fine print says.

Didn't they ever send you letters when payments weren't made? perhaps they never entered into their system that the computer was returned. Did you call the company you bought this from and ask them why you owe them anything.

As mentionned above, check the fine print, there may have been a return fee but I see no reason they could charge you the cost of something you returned.

You need to check the contract. How did you send it back? Do you have proof they received it? Did you move?

I'm also wondering how you were not notified about this in the intervening years.

As for the SOL. All that means is that they may not be able to sue you for the amount owed. It does not mean they can't list is as an unpaid debt.

In writing request a copy of the contractual agreement.

You are going to look for a few things (These are Alberta regs, so check with your province for theirs):

1. Returns policy - is there one, what are the terms? How did you send it back? Proof, receipt. If your not entitled to a return then tell them in writing you want it back or similar.

2. Third party/collections provision - did you authorize them to send your information to a third party or collect against you?

3. Interest. Now this is the big one. They cannot collect for interest unless you agreed to it. Collection agencies are big on trying to collect interest not entitled too, because it makes their "settlement" offerings more attractive and it intimidates you to pay them first.

Get a hold of that agreement first and foremost and see exactly what it says. IN Canada there are no laws that say you have to talk to a collection agency and they will lie and manipulate to get you to pay. Don't talk to them until you get this contract.

Also get a copy of you TransUnion and Equifax credit report and see if its on both. If so it will be present for 6 years from the date it was assigned or last acitivity. This is important also. Don't agree to anything as you want that date to go by as quckly as possible.

Also if they offer you a settlement, don't take it, and if they offer you a different contract, don't take it until you talk to someone first. Remember its your credit!

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