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LeeLee222 · Jul 9, 2014, 05:00 PM

Can a collection agency file a claim in court after 2 years of no activity on the account? They claim the last payment received was June 2012 and want to file the claim tomorrow July 10, 2014. They also stated that proceeding were started April 8, 2014 but that they will file tomorrow. Since that is just 2 years past can they file the claim in court? I thought there was a statue of limitations in Ontario? Please help.
Thank you

smoothy · Jul 9, 2014, 05:35 PM

Where did you hear ONLY two years since last activity was enough on a creidt card debt. Its 7 most places

It really doesn't matter when they told you they were going to proceed... they can do it when they want. I'm assuming they offered you a chance to settle out of court... and you didn't repond that you would in time, that you did have that account...and you did run up that debt.

LeeLee222 · Jul 9, 2014, 05:50 PM

The government of Ontario passed a law for debt in 2004. Statue of limitations. Statute of Limitations on Canadian Debts | Credit Collections . I believe I have read this correctly? The 6 or 7 years is for credit bureau.

smoothy · Jul 9, 2014, 06:06 PM

All they have to show the court is what is legally considered activity in the time limits prescribed, and that the debt is yours... you will have the burden to prove that there wasn't. Do you have cancel checks to prove when the last payment was made? I'd recommend finding it or getting a copy from your bank of at all possible to support your case as to when the last activity was. Are you going to be able to do that? If they win, they will get the full amount... if you negotiated a settlement , you could probibly settle for less. It's a gamble either way.

And with a collection on your record, which there no doubt is right now.. good luck getting credit or a loan of any type.

My wife works as a consumer loan rep in a bank... collections like that are a kiss of death on any loan applications... even secured loans.

If you never opened an account or had a card with them...then by all means fight them (actually It appears you don't have a choice BUT fight them). Do not blow off the court date...they will win by default if you are a no-show.

ScottGem · Jul 10, 2014, 05:09 AM

You read the law correctly, but what you miss is that the 2 years is from the date of default. If the last payment was made in June, 2012, then default did not really occur until at least sometime in July 2012. And it may have occurred even later according to the contract you had with the creditor. So if they file right now, they are probably within the SOL. It sounds to me like their legal department is up on the law and knows exactly when they have to file to stay within the SOL.

Also note that the debt doesn't expire, just the creditor's right to use legal means to collect it.

AK lawyer · Jul 10, 2014, 07:00 AM

You read the law correctly, but what you miss is that the 2 years is from the date of default. ...

As I read what is at the link which Lee posted, the federal SOL is 6 years, but the several provinces can have shorter ones. We don't know which province OP is in, do we?

ScottGem · Jul 10, 2014, 07:35 AM

Ontario as noted in the original post.