[stevejen]

I had defaulted on a MasterCard with you which was sent to collections. We came to an arrangement and right up ontill the very last $100 owed, I expericenced financial difficulties again and called the agency. They told me to pay it as soon as I could. I then sent them a letter after I paid the $100 3mts later and thanked them for their understanding and that the account had been paid. So now, 2 mts later, another agency calls and says that because I paid the $100 too late it voided the contract and are threatening to take me to court and lien my house. It took everything I had to pay what I could. I have all the letters from the previous agency and the letters I wrote to them stating the agreement and the plan and I wrote after that last pmt was made. As far as I am concerned, I have paid the account and the agency is saying that even though I paid the agreed amount, I didn't pay it on time and that Canadian Tire refuses to acknowledge that the loan is paid and therefore is planning on gouging me for even more then we agreed.
I am tired of dealing with this. I didn't have to pay the money and I would have been right here where I am today. I am stressed out about money so much that I'm becoming ill because of it.
They have now threatened to take me to court, drag my name through the mud and lien on my house which is up for sale as we speak. Why are they doing this, can they do this to me and what are my options?

[ScottGem]

If you reneged on your agreement, yes they can do it. Its possible the creditor didn't like that the previous collector gave you leeway for that last $100. And transferred the account to another collector.

I am bothered by your statement that you "didn't have to pay the money". Assuming this was a valid debt, yes you did. On the other hand, I doubt if a court is going to side with them.

So write them a letter stating that you made all the payments agreed upon, that, you count the debt as satisfied. If they want to take you to court over it, you will fight it there.

[stevejen]

If you reneged on your agreement, yes they can do it. Its possible the creditor didn't like that the previous collector gave you leeway for that last $100. And transferred the account to another collector.

I am bothered by your statement that you "didn't have to pay the money". Assuming this was a valid debt, yes you did. On the other hand, I doubt if a court is going to side with them.

So write them a letter stating that you made all the payments agreed upon, that, you count the debt as satisfied. If they want to take you to court over it, you will fight it there.

I know that I had to pay for the debt but what I meant was that if I didn't give them a dime that I would be in exactly the situation I am in now. The only difference is that I would have the money I had paid to honour the debt. I really did try to make this OK but I feel like I'm being crusified for paying it in the first place. Thank you for your reply and I will take you up on your advice. Just one more question if you don't mind. The balance I owe now is about $1000. Can they lien on my home?

[JudyKayTee]

Yes, they can file a lien against real property.

[ScottGem]

Yes that can IF they go to court AND win a judgement. But all that lien means is that you have to pay off the lien amount before you can sell the property. So at the closing you just issue them a check from the proceeds of the sale.

[AK lawyer]

... They told me to pay it as soon as I could. I then sent them a letter after I paid the $100 3mts later and thanked them for their understanding and that the account had been paid. ...

Looks like an accord and satisfaction to me. Do you have proof that they received this letter? It would be better had you sent the letter along with the $100.

[chukkk]

First thing you should no is there is no collection agency in Ontario that can file a lien on anything let alone your home.
Second is no collection agency in Ontario will go to court for anything especial $100.

The second agency can't make rules that have been agreed to. Tell them you'll give them fifty bucks and get lost.

II have dealt with dozens of Ontario Credit Agency's and all that noob on the phone can do is threaten you. The only person that can put a lien on your house is a judge and that means you go to court and tell the story.

[chukkk]

Yes, they can file a lien against real property.

They can't file or claim anything. That's left to a judge not some fool calling from a credit agency. First it has to be established through a court you actually owe the money--- and they won't go to court

[ScottGem]

The only person that can put a lien on your house is a judge and that means you go to court and tell the story.

That's not entirely accurate and is not contradictory to what we are saying. You are correct, before a creditor can attach an asset or file a lien, they have to obtain a judgment first. That doesn't disagree with what we have said.

Once a judge awards a judgment to the Plaintiff, the plaintiff then applies for writ of execution (or whatever it is called locally) to attach an asset, garnish income or place a lien. The court then issues such an order, but the plaintiff files it.

[AK lawyer]

...
Once a judge awards a judgment to the Plaintiff, the plaintiff then applies for writ of execution (or whatever it is called locally) to attach an asset, garnish income or place a lien. The court then issues such an order, but the plaintiff files it.

I don't know how it's done in Ontario, but in most places in the 'states, once you have the judgment you don't have to go back to the court for permission to "place a lien".

[ScottGem]

That's my experience too. A writ of execution yes, but not a lien. But I was playing it safe.