Ask Me Help Desk - Statute of Limitations in Ontario + Legality of Collectors

Hi There,

When I was 18, somehow I got approved for about $21,000 worth of credit which was maxed out 6 months later. I'm now 26, I haven't made a payment since October of 2006 on any of the debt (prior to that all my payments were on time). Currently I'm out of work looking for a new job but have been unsuccessful for almost 3 months.

What I would like to know is:

1) Is the SOL on this now 2 years from October 2006? (I heard somewhere there were newer provisions and it's not 6 years anymore but I'm not sure)

2) If a creditor does call, and I answer, does that automatically start my time over? Or do I have to agree to the fact that I have debt with them when I answer?

3) If I request that all further contact with me be in writing are they legally obligated to only send me mail? If that's true, and they do call me again, does that give me grounds for legal action against the collection agency?

Any help would be greatly appreciated!!

Thanks,
Mike

3. You owe $21k you never paid and you want to take legal action? You owe the money right? Besides if you are not paying the money I'm assuming you cant'? So what makes you think you can afford to take legal action if you are broke?

2. you can ask they not contact your work, but you can't stop them from calling at home I don't think. Talk to them every 2-3 weeks and that is all... no more than that.

1. what is SOL?

I suggest contacting them and stop trying to hide. They will find you eventually... and likely sue you, garnish your bank accounts or freeze them, and your wages sooner or later.

I'd contact them and ask for mercy. Tell them you want to pay but cant. Then work out some sort of payment arrangement (in writing)...

Credit Card Collectors Are SCUM!

Hey Mike,

The SOL is 2 years, and that would start from when you became in default. So If you were to make a payment in October 2006, and did, then you weren't in default then. So you next payment would have been November of 2006 and you didn't make that, so that is when the CC knew you weren't going to pay.

So they have until Nov 2008 to sue you.

Read this link: Collection Agencies - Government of Ontario (Canada)

This is from the Ontario government talking to you about what collection agencies can and can not do. If they violate what they are allowed to do, you can report them using the link on that website.

Just by answering the phone does not restart the SOL. Do not agree to pay any money and do not tell them you owe them the money.

Since the agency has spoken with you, they may only contact you (other than by mail, so by phone) a maximum of 3 times a week, except on Sundays, except on Sundays between 1-5pm.

Keep in mind that running from them might not be the best idea. They can easily take you to court and obtain a judgment against you. You might want to consider arranging a payment schedule with them.

Thanks CaptainForest for the clarification. Very much appreciated.

I figure worst case scenerio:
They sue and win, (I rent, my car's only worth about 2 grand, I have no items that is worth repoing so they're mostly screwed either way)

OH! And thanks for the link. That's very valuable information in that link.

Quote:

3. you owe $21k you never paid and you want to take legal action? You owe the money right? Besides if you are not paying the money I'm assuming you cant'? So what makes you think you can afford to take legal action if you are broke?

I'm talking in the form of harassment. I have one person who's calling the apartment 2-3 times a day every day leaving angry voicemails to call her back. The one time I did talk to her (This person was in November) I told her I had lost my job and was awaiting approval for assistance until I could get another job.

She said "Well they must pay you money? Pay us with that."
I told her "Do you have any idea what I get? I have enough to cover my rent and a total of $40 a week food budget for 2 people"
She said "Well that's not MY fault now is it. You have to pay your bills."
I said "If I had any money that I could spend I'd pay you, but it's all going to rent and food right now."
She said "You gotta do what you gotta do, think of it this way, if you were homeless for a few months, you can take this deal and be paid in full!"

That's when I totally lost it on her!

You're welcome Mike.

Just keep in mind that if they obtain a judgment against you they can garnish your wages and judgments last for 20 years in Ontario.

Lets put this in some perspective. Most collectiors are scum. Their job is to bleed people for whatever they can. But deadbeats are also scum. They gave their word they would pay back what they borrowed and reneged.

Now before you get huffy, I'm not calling you a deadbeat. Not everyone who defaults on a debt is. There are often reasons, usually some life change, that caused the default.

But you have to remember that you OWE this debt. You will always owe this debt. Your approach should be to work out a way to pay it off, rather then try to get out of it.

Clearly the SOL will be in effect for awhile. They have plenty of time to get a judgement against you. And that will extend the time they have to collect. As soon as you get a job, they will garnish your salary. By hiding and dodging them, you make them leery of trusting you to voluntarily pay.

Quote:

Originally Posted by MikeTheMike

Hi There,

When I was 18, somehow I got approved for about $21,000 worth of credit which was maxed out 6 months later. I'm now 26, I haven't made a payment since October of 2006 on any of the debt (prior to that all my payments were on time). Currently I'm out of work looking for a new job but have been unsucessful for almost 3 months.

What I would like to know is:

1) Is the SOL on this now 2 years from October 2006? (I heard somewhere there were newer provisions and it's not 6 years anymore but I'm not sure)

2) If a creditor does call, and I answer, does that automatically start my time over? Or do I have to agree to the fact that I have debt with them when I answer?

3) If I request that all further contact with me be in writing are they legally obligated to only send me mail? If that's true, and they do call me again, does that give me grounds for legal action against the collection agency?

Answer:
Q1: The SOL is 2 years where the debt was discovered after 01/04/07 or the last payment or written acknowledgment was after 01/04/07.

Q2: A verbal contact is not an acknowledgment and does not restart the limitation clock.

Q3: NO. The CA has the right to call you. They do not have the right to harass you. Who defines harassment? The Province of Ontario can make a finding that you have been harassed arising from a complaint. A Court may make a finding. The proof is on you that the actions constitute harassment and that you have suffered damages.

Any help would be greatly appreciated!!!

Thanks,
Mike

Answer: