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    Geramiah's Avatar
    Geramiah Posts: 4, Reputation: 1
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    #1

    Oct 3, 2009, 08:52 AM
    Statute of Limitations for Debts
    I hope I am putting this question in the right section. I used Legal Aid Ontario in 2003/2004 for a case that I was involved in. At the time I was being billed by them for $35 a month. I paid all the bills that I received. When the case was over they stopped billing me and I stopped paying thinking that it was finished. This week (over 5 years later) I received a letter in the mail saying my account was going to a collection agency if I didn't pay the $2000 that I owed them.

    My question is does the 'Statute of Limitations' apply here? In Ontario it is 2 years from what I understand. I had absolutely no idea that I owed this money and have not acknowledged the debt with them. What would be the best way to handle this?
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #2

    Oct 3, 2009, 10:43 AM
    This depends on the type of contract you have. I believe the 2 years you refer to is for debts, but this is not a debt you contracted to pay Legal Aid a specific amount. So this comes under contract law which may have a longer SOL.
    Geramiah's Avatar
    Geramiah Posts: 4, Reputation: 1
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    #3

    Oct 3, 2009, 10:48 AM

    Thanks for the quick response. So where would I find out this information. Also is it not unreasonable for an organization like Legal Aid to wait 5 years and then send a final notice with no bills in between?
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #4

    Oct 3, 2009, 11:07 AM

    Well yes, that would be your defense, that you stopped receiving bills so assumed the balance was paid off. So I would call them and ask the question.
    Geramiah's Avatar
    Geramiah Posts: 4, Reputation: 1
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    #5

    Oct 3, 2009, 12:50 PM

    Thanks. Im confused by what you said about it not being a debt. Why would this be any different than a credit card debt - you also sign a contract for that? What differentiates a debt from a non-debt? And what laws cover non-debts (this is what I call them as I don't know any other term to cover them)?
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #6

    Oct 3, 2009, 12:55 PM

    Because, you didn't borrow money. You contracted for a service and that service was provided.
    Geramiah's Avatar
    Geramiah Posts: 4, Reputation: 1
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    #7

    Oct 3, 2009, 02:53 PM

    The way I understand Legal Aid is that they loan you the money to pay your Lawyer - well they pay him for you - and then you pay back the amount that they loan you - is this not the way it works?
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