Statute of Limitations on Canadian Debts

Posted on 27 July 2012 by Credit Collections

The Federal and Provincial Governments have Limitation Acts which provide a limit on the time an unsecured debt can be perused by legal proceedings. If an unsecured debt is not collected, or payments are not made on the unsecured debt within these time limits, then legal action cannot be taken by the creditor. For more information about statute of limitations for Canadian debt, please check out the Credit Collection forum.

  • British Columbia – Section 3 (5) of the BC Limitation Act sets 6 years as the limit for debt.
  • Alberta – The Alberta Limitations Act sets 2 years as the term which is extended to 10 years if there is a judgement.
  • Manitoba Limitation of Actions Act, C.C.S.M. c. L150, s. 2(1)(g) sets 6 years as the limit for debt.
  • New BrunswickLimitation of Actions Act, S.N.B. 2009, c. L-8.5. sets 6 years as the limit for debt.
  • Newfoundland and LabradorLimitations Act, S.N.L. 1995, c. L-16.1, ss. 5(b); 13; 14. sets 2 years as the limit for debt.
  • Nanavut - Limitation of Actions Act, R.S.N.W.T. 1988, c.L-8, s. 2(e). sets 6 years as the limit for debt.
  • Nova ScotiaLimitation of Actions Act, R.S.N.S. 1989, c.258, s. 2(1)(e). sets 6 years as the limited for debt.  However, within 4 years of expiry of general limitation period, court may disallow the limitation period, having regard to circumstances of the case – Listed are enumerated factors to consider including date of “discovery” of claim.
  • NWTLimitation of Actions Act, R.S.N.W.T. 1988, c. L-8, s. 2(e). sets 6 years as the limit for debt.
  • Ontario - The Ontario Limitation Act of 2002 , came into force on January 1, 2004. It sets 2 years as the term (Section 4). However, this limitation will be reinstated where the debtor acknowledges the debt or makes a partial payment towards the debt. If the debt default occurred prior to January 1, 2004, the creditor will have 6 years to pursue the claim. However, if the default occurred after January 1, 2004 then the credit will just have the 2 year limit.
  • P.E.I. - Statute of Limitations, R.S.P.E.I. 1988, c. S-7, s. 2(1)(g). sets 6 years as the limit for debt.
  • Quebec – Civil Code of Quebec, S.Q. 1991, c. 64, art. 2925. sets 3 years as the limit for debt.
  • SaskatchewanLimitations Act, S.S. 2004, c. L-16.1. sets 2 years as the limit for debt.
  • YukonLimitation of Actions Act, R.S.Y. 2002, c. 139, s. 2(1)(e), (f). sets 6 years as the limit for debt.

 

  • Federal – Section 32 of the Crown Liability and Proceedings Act sets 6 years as the limit for debt. Consumers, however must be careful when dealing with the statute of limitations regarding debts at the Federal or Provincial Government level. These include student loans, child support, taxes and alimony.

 

In the event that a judgment has been filed against a consumer, limitations are still set of the time that judgement can be collected. Specific cases and questions regarding limitations after a judgment has been filed against you can be found asked in the forum.

It is also important to note that limitation can be reset. Limitations begin when a cause of action arises, this is typical the date of last activity or the date of last payment, therefore if you have a bad debt and you start making payments, the statute of limitations resets.

  • Wlr

    Is that six years from the time the debt was incurred like when you got the for instance credit card?

    • Eastcider

      Six years since last ever – payment received by debtors. Period.
      I just got off a hook with that, and shortly after that, they sell out to CBV or the like, and they try (real hard) to get you to admit to the debt, or getting you to make a payment. Do either one of those things and you are screwed with having to pay it by admitting to the debt.
      Play DUMB! What debt? I don’t owe you. Just hang up at all costs!
      Trust me..they even go as far as to freeze your bank account (the one handling the debt) so you have to call them. I lucked out, and haven’t dealt with that bank since the old debt resurfaced..right on cue: 6 years, and two months. (always the same) I am currently blocking calls, because they “claim” I owe for something i last paid July 21st, 2006. That’s 6 years and a couple months until CBV called looking for someone who had a debt with unamed bank. Remember!!!
      TELL THEM NOTHING OR YER BACK IN IT!! BE CAUTIOUS AND HANG UP/BLOCK THE # AS WELL. DO NOT LET THEM TALK YOU INTO HAVING TO PAY IT, IT’S YOUR RIGHT TO WALK AWAY AND HANG UP. i COULD BE SAVING YOU THOUSANDS.
      I could have owed 6K all over again just by making a 1 dollar payment, or agreeing I have a debt with them.
      No time for kindness, run like hell!

      • Jared

        I have had old debts resurface as much as 10 years old. In fact I just got a letter yesterday. The letter was for a settlement offer from some collections company in Grande Prairie, Alberta. The original debt was for $24 in late movie fees! With interest its over $100. I wont pay it ever out of principal as it popped up on my credit file years ago when I renewing my mortgage which is how I found out about it. Raised our interest rates and when I got the video store to send my original contract, they didnt have one. Even after winning a privacy complaint for sharing my information with the collection company without my permission I still get the offer letters every once in a while. The movie store when out of business so obviouly the collectors bought the debt.

        • Credit Collections

          Check out the forum Jared, I can help you deal with this: http://www.credit-collections.ca/forum

          • Fuzzy

            I am trying to register so I can post to the forums for some advice but it says registration is closed. Is this site still active?

        • TJ

          First off…..simply admitting to the debt on a phone does NOT reset the SOL. It must be acknowledged either by a payment or in writing period. That acknowledgment must be done BEFORE the SOL has expired. Nothing you do after it has expired has any effect.
          Secondly making a payment does not cause the credit report to run an additional 6 years. It is 6 years from when it was first reported..

          • John

            You’re wrong about this. Making a payment resets the 6 years your debt stays on your credit file. Credit files in most provinces stay on your credit file with Trans Union or Equifax for 6 years after the date of last activity, not after it was reported. That is outdated info. If you make a payment, that is considered an activity

          • Credit Collections

            When a collector calls and goes through a series of identity verification checks and can confirm that you are in fact the owner of the debt. If you admit to the debt it can reset the statute of limitations. All calls are recorded and its up to the collection agency as to what action to take. If you admit to a $20,000 debt then they will come after you for it. Also, making a payment DOES reset the time it’s on your credit report which in most provinces is 5-7 years from the time of last payment, or if none the date of last activity.

  • http://www.facebook.com/jon.strat Jon Strat

    If I ask a Credit agency to send me a copy of my credit report will this effect the 6 year statue of limitations.I just want to look I wont call pay or contact any creditor

    • Credit Collections

      The credit bureaus, Equifax and Trans Union only collect and share information about your credit history and they manage that information in accordance to Canadian/Provincial laws. By those same laws you can request a copy of that report anytime you wish which has zero impact on your credit file.

      The only time the statute of limitations for a debt is reset is when you admit a debt is yours or if you start paying on an old debt.

  • Debt Free

    So, after the statute’s have LONG passed, how long can these debts stay on your credit report? It seems like collections agencies could keep buying the debts from one another and keep the account live as long as they want. How do you get these expired debts off of your report?

    • Credi Collections

      As long as you dont start paying these collection agencies the debt should drop off automatically when the regulation reporting term expires (most is 6 years from date of last payment). If it foesnt, but you are sure the debt is over 6 years, you can contact both Equifax and TransUnion ans let them know the debt is over 6 years. It typically takes about a month to do it.

  • Baffled

    How about a legal bill showing up 3-1/2 yeas later. In Saskatchewan my daughter received a bill for 1499.00 from the firm the handled their house purchase in January 2010. My daughter & fiancée thought all Monies in trust covered all the costs as they hadn’t been billed for anything else until today. The bill arrived saying that their file had unfortunately been misplaced( in the office of the lawyer they dealt with) and in a nutshell here is the final bill for finalization. When she called to challenge receiving the bill now the office clerk said the lawyer they had dealt with recently had a stroke and she and his associate had gone through his office to clear up outstanding cases hence the bill and that three years wasn’t really that long.

    • sourcespin

      Your daughter would off had to have signed some form of an agreement for costs that would outline the fees. Hopefully she can find that information. Until then, do not admit to the debt as it resets the statute of limitations. Sad the lawyer had a stroke but until he can confirm anything, who says the associate has not made a mistake.

      Look at all documentation she has and then ask the associate for all documentation they have. You are looking for a signed billing agreement or anything that states a fee structure and date of service.

    • Choked

      Hey, so turns out I had received the exact same letter as you did from the same law office after purchasing a house in jan. 2010 with the same story/amount owing…. Not to mention the monthly interest being added Just wondering how you made out with dealing with this B.S.?! I was sure someone else out there had the same problems

  • Angel

    what if my bank suddenly put an old credit card number linked to my account without my knowledge (credit card having been over 10 years old) when I asked my bank to pay a credit card belonging to my mother, my bank put the funds towards the old credit card they linked to my account without my approval or request. It was my understanding that the 10 year old credit card debt had been written off, now a collection agency has been harassing me about the debt 2-6 times daily.

    • Credit Collections

      If your past credit card was issued where you still bank then they can take the funds. You won’t be able to get that money back. As for the collection agency, they are easy to deal with once you understand the laws. Next time they call, do not give any presonal information other than to verify your name. Ask the collector to provide you with all the information on the alleged debt in writing as you are disputing the debt. The collector will probably not be compliant at first, but just state that under the Fair Trade Act you are requesting ALL information regarding the alleged debt and until that is received you are disputing the debt. Also inform then that until that information is received in writing, they are no longer allowed to phone you or you will be filing a consumer affairs complaint. Be firm with the collector, but not rude. If you feel more comfortable, record the conversation.

      Understand that under many of the countries Provincial laws, this debt is past the statute of limitations for collection BUT if you admit to the debt that statute of limitations is renewed, meaning they can sue you. I would need to know more about what province you are in to help you out.

      To discuss this further and access more detailed information about dealing with old debts please visit this post in the forum: http://forum.credit-collections.ca/index.php?topic=12

  • IamME

    Hi there, I have a bad debt from about 10 years ago. I have been contacted by collection agencies by mail, but never replied or called them. Apparently my debt was sold to a different collection agency. They called last week and I spoke to an agent on the phone.

    Would this reset the statute of limitations?

    • Credit Collections

      Never admit to a debt as they will just continue to harrass you regardless of how old the debt is and how many times it has been sold. Admitting or starting to paying an old debt can reset the statute. When a collection agency contacts you where you know the debt’s statute has expired, do not admit to the debt and tell them that you are DISPUTING the debt and that they can proceed through litigation. You do not need to say anything else. If they continue to call, write a dispute letter. This post in the forum gives a bigger explanation of dispute letters and dealing with a collector: http://forum.credit-collections.ca/index.php/topic,12.0.html

      • IamME

        Thanks! That helps a ton

      • IamME

        The call ended with me disputing and saying that the debt was already paid.. They asked me to send in a fax with the payment details.. which I dont have because I never paid the debt. So I think I inadvertently admitted that the debt was mine.

        BTW, I will never pay this. My college roommate used my credit card to order online. I claimed fraud, however, they said I was held responsible. The debt has continued to grow as they have been charging interest. Its now over $2k, started at $500.

        Do you think that I should call back to dispute the charges now? I hope I didnt screw myself over by admitting to the debt.

        Thanks again for your advice

  • Iggy

    Hi there, I had a debt with has been 6-7 years since last activity. It has already cleared from my credit history but recently a new agency has been calling and writing saying they have taken over the debt. What can I do? The agency is Contact Resource Services. I took one call and advised them the alledged debt has reached the SOL. They have called my phone, my work phone and are quite relentless.

    • Credit Collections

      Yes they are relentless. They are like rabid ants on a cookie crumb. The original debt you had has been sold to the next collection agency for pennies on the dollar and there really is nothing they can do. If you admit to the debt then can reset the SOL but depending on the amount they won’t bother. Suing someone is one thing, but enforcing it can be very expensive so unless it’s well over $5,000 and they KNOW they can get the money, they won’t bother. Next time they call you tell them you are disputing the debt and for them to seek legal action and to not contact you again. Be as rude as they are. After the calls stop you will probably then get two settlement offer letters and then they will go away.

      • Chelsea

        Telling the collection agency to “never contact me again” does nothing. Unless you are a resident of British Columbia, you cannot just ask Collectors to do this and expect that will be the end of it. Fact remains- You incurred the debt, pay it, then collectors won’t be “chasing” after you. You have a very obscure idea of how this industry works. Every client is different, so don’t expect Settlement letters so easily.

  • Steps to Control

    Hi, I live in Alberta and I have debt from 3 credit card companies (since 2007) and student loans. Recently I was called frequently by them all regarding my unpaid required minimum amount for more than six months and outstanding balances. I noticed I was charged with massive interests, fees, and penalties. I was told that I would have a bad credit score, and could lose my ability to get a mortgage, a car, and hired by a company.

    Sadly, I confirmed with them my date of birth & address, elaborated on how I have no assets, extensive liabilities, that I’m working only part-time so I don’t have enough to even pay for groceries, and explained that I had debt from other credit card companies as well- I agreed to try to pay a tiny amount but that I had no way to pay the minimum amount (up to $150 – it became 8x the initial minimum amount) and on time.

    Last week, I actually paid a tiny amount of $30 dollars to each of them.

    After researching into this today, now I regret having claimed the debt and going into the details of my story of woe.

    May I ask if you can elaborate on the Alberta Limitations Act please?

    - what it means by: “… sets 2 years as the term which is extended to 10 years if there is a judgement.”

    Do I have to keep paying monthly minimums of $150 to each creditor for 2 years or 10 years based on what they recorded me saying over the phone?

    Would it legally help me anymore if I sent them a brief financial statement, letter from my accountant, or phone to negotiate an amount to settle my credit card debts after my unintentional actions done to make it messy?

    • Credit Collections

      If they sue you the statute of limitations extends to 10 years, if they have not sued they only have two years to sue that starts when you stop paying or if you have never paid then the original date to the creditor when the debt became past due.

      Do not provide any further information to a collection agency or your creditor or offer a settlement at this time.

      If you want to create a thread in the forum, I can ask questions and help you further but it’s a too big for blog comments.

      http://forum.credit-collections.ca/index.php?action=forum

  • Fireman

    I live in Newfoundland and the debt is over 7 years, yet I still get these calls treating to take action, what can I do to get the guys off my ass?

    • Credit Collections

      unfortunately they will likely never leave you alone because old debts are sold and bought all the time, I have heard of debts 15 year old the subject of calls and letters. Good news though is your debt is well over the statute of limitations so they have no legal grounds to collect. Next time they call tell them that you don’t have any outstanding debts and that you are disputing the debt and advise them to stop all contact and seek legal action. Be firm if needed and also state that if they continue to contact you will file a consumer complaint withe province. The calls should then stop, but they will still likely sell the debt to someone else so every few years you can expect calls or letters to start again.

      • Chelsea

        You should do some more research…You’re giving inaccurate information here.

        • Credit Collections

          Hi Chelsea, I have done my research, including that the same IP address is posting from two different accounts telling people to pay their debts and that we are giving false information. I have deleted the other comments but I will keep this one up, including that your IP address belongs to Commercial Credit Adjusters. Bye now!

        • Joe

          Simple solution get a new identity at: http://www.noveltyid.us

  • Benny

    Hi I have three old debts with credit card companys that are all over 5 years old since last activity, which I understand is from last payment? They are for about originally $5000 each before Interest. I have had no contact with with two of them this whole time and just recently called to try to settle one that was on the collections part of my credit report. I gave them my name and addres but did not set up any payment plan, do to them being unreasonable with a settlement. By me calling and discussing my debt mean that I have “admitted” to this debt? If not will this drop off the collections part my credit report after 6 years? Also I contacted a legal company and explained my situation and they have advised me to make arraignments to settle with these companies. I don’t see a point of doing this if its just going to come off my report next year. What should I do?

    • Credit Collections

      If you pay them and they update the collection on your credit file as paid, then you will have to wait six more years. If you have copies of your Equifax and TransUnion reports you will have the date of last payment. If both of those expire next year then I would wait. A lawyer is an officer of the court so they are going to tell you to pay, do a consumer proposal or file bankrupcy, they are not going to advise you to not pay. If your credit report is your top priority then waiting it out quietly is your best bet.

      • Benny

        Thank you for the help! That’s what I was thinking of doing but just needed some reassurance. Does by me calling the one collection agency mean I have admitted that debt? I haven’t paid anything or agreed to anything. I live in Ontario.

        • Credit Collections

          I wouldn’t worry about calling them once if its over the statute of limitations. I really depends on the debt and the chances of collecting if the SOL is reset. If you are a doctor and it’s a $100,000 debt, then yes it would be worth it to the Collection Agency to go after you for admitting the debt.

          Understand that the statute of limitations is to sue you in court. So to do that it has to be a big enough debt that they know they can enforce with a judgment. If they didn’t sue you the first time, it’s highly doubtful they would do it this time.

    • Bella

      Do nothing, just wait one more year. I’ve made the mistake to paid off 2 of these collection companies and I found out after the debts was never removed from my credit report:( I had to wait 6 years so….If you want to pay for nothing, go ahead

      • Credit Collections

        See that’s a good point to make too. Paying collection agencies can often INCREASE the time a debt is on your credit report. Say you have a debt of $120 that you owe a company that goes to a collection agency where the collection agency listed the debt on your credit report. The company may have an agreement with the collection agency that after one or two years, if the debt is not collectible then the debt goes back to the original debtor. In this case, the collection agency will most likely REMOVE the debt from your credit file because they no longer manage the collection. Most often over two years it won’t be reported again if a new collection agency is assigned or they bought the debt. So in cases like this it is best not to pay because if you would have started paying the first collection agency or paid the debt off, then that collection agency would have marked the debt as paid on your credit file and it would be there for…..6 more years.

        This does not work for all companies as some have their own internal collection departments, but if a debt is past your provinces SOL, then it’s never advisable to pay or give them any information or admission of debt that encourages them to pursue it.

  • Air426

    Hi I live in ontario and i have a 7 year old (or maybe 8) credit card debt of $1100. I have received multiple letters from a collection agency offering a settlement of $700. I just got one yesterday saying this is my final notice before they take legal action in Ontario small claims court etc.. I have never ever spoken to these people in my life I just throw the letters out. What should I do? And who do I contact to get it removed from my credit report if it hasn’t already? thanks!!

    • Credit Collections

      Statute of limitations in Ontario is two years. They can’t sue you. The offer of $700 is because they bought the debt for pennies on the dollar so they make these settlement offers to get whatever they can.

      They can NOT take you to court.

      I would suggest you continue to throw the letters away and do not speak to them. As for your credit report, request a copy from both TransUnion and Equifax to see if its on there. If it is you can file a dispute if the dates are inaccurate to have it removed.

      • TJ

        Just to be clear. THEY can sue you.
        They just can not win if you show up and raise the SOL in your Statement of defense.
        However if you fail to appear in court they can and will win a default judgment regardless how old the debt.

  • Island44

    HI there! I received a Notice of Claim from BC Provincial court from Contact Resource Services from an old debt. The debt was opened 7 years ago and the last payment was made, so last acknowledgment of debt (according to their statement) was 5 years and 11months ago. I think it may have been earlier. I have 2 weeks to reply, by the time I reply and they set a court date the SOL will be past the 6 years SOL. Because they filed just in time does that means I have to pay??? Please help? What course of action should I take.

    • Credit Collections

      As long as its filed in court in time, the SOL cannot run out waiting for the hearing and you response. Bit it sounds like they have manipulated the date if you are sure it 7 years old. Did the letter come registered mail? Is the original creditor suing you or the collection agency?

      • Island44

        Thanks for your response. According to the invoice from Contact Resource Services that was filed with the notice of claim the account was opened November 15, 2006. In their statement they said the last payment on the account was made November 15, 2007. Also according to their invoice they took on the debt in March 2012. The date stamp on the Statement of Claim is September 30, 2013. The original debt I believe was around 2500.00 with HSBC (previous household finance). It has accumulated to over 8000.00 now with interest at 29.9%. The are suing me the individual the full amount plus court costs. I only started getting phone calls and one letter from them in the last few months and have never spoken to anybody, before that I have heard nothing from no other credit agents. I don’t know what the best course of action to take would be.

        • Island44

          And yes the letter came by registered mail.

          • Island44

            So am I basically hooped then? I could reply and deny the debt, make them prove the last date of acknowledgment so last payment date? I have no paperwork because it was so long ago.

          • Credit Collections

            Deny any ‘knowledge’ of the debt and go to court. The SOL should have started on the date of last payment to the original creditor which appears to be November 15, 2007. Which is over the SOL. What it appears to me is that this collection agency is hoping that you dont show up in court so they get a judgement.

          • Island44

            Thank you for the advice, I was planning on doing that as well. However November 15, 2007 is 5 years and 11 months, so doesn’t that mean it isn’t over the SOL? Just wondering if I can use that as a defense in the event I did make my last payment on that date like CRS claims.

          • Linda

            So what was the outcome?

          • Island44

            Hi Linda. I replied back in December denying any knowledge of this debt I
            didn’t hear back for a couple months. Just a few weeks ago I received a
            notice of mediation from the court. So the case is going to Mediation
            on Wednesday March 12th. I guess I will see who ends up showing up and
            what proof they have of the debt with actual dates. Mediation doesn’t
            mean a final decision as both parties have to agree, if neither party
            agree then the next step is court. If they don’t show up then the debt
            is dissolved. We will see what happens, I will keep you posted. Are you
            having issues with CRS Linda?

  • not

    Hi, I’m getting calls on my cell from Total Credit Recovery for the Rogers debt of a 3rd party I have no connection with (never heard of them till I got the phone). They’ve now given me this person’s (prior?) address, (prior?) alternate phone number, full name, and month of birth. All over an insecure cell-phone connection. They’ve given me enough to determine the person’s day of birth and high school attended (careful with Facebook, people) which would allow me, were I so inclined, to obtain their birth year (yearbooks!). I think that’s enough in many places to apply for a credit card. They have never authenticated my name, DOB, address. I refuse to give it over a cellphone so they assume I’m Tracey and try to get me to confirm that my birth month is (month). That I live at (address). That I had an account with Rogers. etc. I used to tell them right off I wasn’t Tracey but that doesn’t stop them. So I’m letting them run their mouths and complaining to any officials that will listen about third party disclosures, contacting a debtor on PEI on their cellphone for debt collection purposes, and repeated calls after they were informed that they have the wrong number.

  • stressed

    Hi. I live in Alberta and i have had 2 vehicles reposessed. One was voluntary and happened 4 years ago. The other one was 9 years ago and they wanted the vehicle back so they came and took it because i couldnt pay for it at the time. I heard nothing on these repos until several days ago when a collection agency called my house and said i owed them 12000 dollars for a vehicle repo. I admitted to having a voluntary repo but they told me the name of the company they were collecting for and i did not know this company. They told me the original finance company was bought out by a bigger finance company. I did not agree to pay any money and told them that i would call back in several days after i talked with my wife who is away at the time. they could not tell me which vehicle they were talking about. the repo from 9 years ago is not on my credit report but the one from 4 years ago is. the one from 4 years ago is classed as a bad debt but the outstanding balance is 0 dollars. What can i do? I think they are trying to collect for the repo from 9 years ago but i did not tell them about that one.

    • Credit Collections

      In Alberta a personal vehicle can be reposessed OR the creditor can sue, they can’t do both. Inform the collector you know this and if they continue to harass you make a report with Alberta Consumer Affairs.

  • Tskittles

    I have a $400 debt with a cell phone company and a $1000 debt with a credit card company. Both are in Ontario and I know that the statue of Limitation’s for legal action is two years, but my problem is I have no idea how to tell how close I am to the 2yrs. Is there any way to find out?

    • Linda

      By getting your credit report with either Equifax or TransUnion. But be wary. I would hold off for what you may think is two years.

  • missy

    I have an old debt from 2006 that I have just started getting calls for I am disputing it but they sent a letter saying they are going to apply for tarnishing my wages but this is my last week before I apply for unemployment maternity can they garnish unemployment and will the sol make them leave me alone or will they not go away until I pay them I will not take away from my child to pay an old debt

    • Backslap_Bob

      Don’t answer any of their mail, and definitely don’t acknowledge anything about yourself or your past debts if they call you. Deny, deny and deny some more.

    • http://windsordebtrelief.ca New Beginnings Debt Consulting

      Missy,

      First of all the only way they can get a garnishment on your wages is if they take you to court (and you must be served with the lawsuit) and get a judgment. If they get the judgment they would have to find out where you work, then go back to court to get a garnishment at your specific place of employment. It takes some time.

      Second, if they do get a judgment and garnishment they cannot garnish government monies. I hope this helps. If you have any other questions give us a call.

  • Jane

    I just received a series of calls from a company that states they represent my credit card company but that they did not buy the debt. They are demanding payment in full ($23,800). I do not have the money. My husband and I have been unemployed for the last year. We have had to move in with his parents who happen to live in a different country then Canada. We are trying to start over…..what can they do to us? Does the SOL start from last Jan when we missed our first payment or from yesterday when I acknowledged the debt?

    • Linda

      The month after you made your last payment. the only true way to acknowledge a debt is either by making a payment or by sending a signed letter that you acknowledge the debt. Saying so on the phone does not count.

  • stressed

    hi my husband and i closedm out a company in Sept 2004 we were a limited liability and had debts wriiten off on behalf of a company its almost 10 yers later and ow some collection agency is calling me saying that i still owe the 11, 000 ??? after almost 10 yers? she says the laons was cosigned by me and that i gave it the “personal guarntee ” i told her I OWE her nothing and she asked me if i signed it . i said yes but only on behalf of the company noe me . she said that the company is still active i told her no!1 it isnt i told her i dont have to even talk to you and she hung up on me im scared now that she may put a lein on my property HOW AND WHAT DOi do TO solve this problem ??

    • stressed

      after reading several of the comments here and reading my sol rights i called her back again adn told her that im not paying and she cant bother me she said i cant go after you legally but u still owe it i told her im seeking legal advice from my lawyer and she said tell him to call me i said doubt it if he will , she told me not to bother to call me back if im not settling it …lol i told her i said yah go call the ppl that actually do presently owe you and leave the 10 yr old debts in the closet with the rest of the skelitons LOL but my question is can she reset the SOL ???

  • Astrix

    Hi There…………I got a call from a 10 year old debt that they are hounding me about. I did discuss the debt over the phone with them. Meaning I was yelling at them saying it was on my credit for 7 years and as far as im concerned its done with. With me saying that does it reset the sol? I have read elsewhere that they gotta have it in writing or a partial payment has to be made to reset the debt?

  • jim

    Hello,

    7 years ago I went through some tough times. I had excellent credit and mortgage that I’d never defaulted on. I sold my home in 2007 and took time away from job which lead to some bad spending habits that racked up my credit. I spent a couple of years getting calls all day and night from creditors. I started looking online for articles related to credit problems. I stumbled upon a gentleman by the name of Mark Anthony silverthorn. He was a long time legal representative for various collection agencies, but was now in the business of helping the consumer. I spoke to him on the phone and he instructed me to pick up his book from chapters “The Wolf At the Door”. I purchased it shortly after speaking to him. I had already defaulted on my loans for a year and a half. After reading his book I came to the conclusion that is would be better not to pay my debts. It’s been almost six years now and I’m looking at repairing my credit just not really sure where to start. I purchased a credit report from Equifax and it states that most of my poor credit history should drop off my report by January 2014. I have a good job and would like to improve my credit so I can buy a home in the near future. I’m looking for some advice in who I could speak to about rebuilding my credit and someone who can tell me what my credit score means. I’m wanting to apply for things like credit cards or a used auto loan for bad credit to improve my score, but not sure this is the right avenue. The problem I’m having is finding an unbiased opinion. In saying that it seems hard to find educated advise when your telling someone you haven’t paid your debts and are waiting for them to fall of your credit report. The answers I get are usually why are here to help people with bankruptcy, consolidation, debt management or consumer proposal. Wanted to know if you would be able to point me in the right direction or have any advice yourself?
    One thing to add I have not been contacted from collections for roughly 3.5 years and have not made a payment for close to six. I did apply for a capital one credit card and of course information was updated and just like that I received a call from a collector just like that demanding payment.
    thanks,
    jim

    Thanks,

    • Linda

      As soon as my “bad credit” dropped off my report I applied for a Canadian
      Tire Card, then a Walmart Mastercard and then a CIBC Visa. I got all of them and am now perfect with paying each one in full every month. good luck

      • Credit Collections

        Thanks Linda. You know, most people that experience bad debt are not because they are low life’s but because they either made a bad choices or bad things happened to them. Its awesome that you are back on the right track which is what this site is all about. Thank you for your words :)

  • sand

    Hi, I just got a call from a guy who said I owed $375 from1996, I said how come this has not been brought to my attention before today and not on my credit checks. He said they don’t always show up. I said I thought it had gotten paid back in 96. He’s sending the info on it, does this mean my SOL is now reset?

    • Linda

      No. Absolutely not. Just send a letter back saying you dispute the bill and for them to take litigation action against you. they will bugger off.

      • Backslap_Bob

        Actually he should ignore the letter altogether — that erases the possibility of even an accidental acknowledgement of the debt, which will reset his SOL.

        Acknowledging a debt even in dispute can and will reset the SOL.

        • SmartOneBC

          Verbally acknowledgment does NOT reset the SOL..A payment does..

    • TJ

      With regards to resetting an SOL.
      Check your provincial limitation act.
      Clearly in Ontario it can only be reset if an acknowledgement is made in writing, or by partial payment before it has run out. Nothing you do after the SOL has expired can restart it.
      Despite the fact an SOL has expired does not eliminate a debt it is forever, they just can not succeed using the courts to collect it.
      However if they do sue and you fail to appear in court to raise the SOL as your defense they will win a default judgment.

  • rachybaby

    Hi Credit Collections,

    I’m a bit confused, so I hope you can help me. I have four questions for you which you can find in the third paragraph…sorry, I write novels sometimes.

    My story is that some of my Ontario debt when into collections in early 2010 (or late 2009) when I became underemployed (I went back to school f/t, and by the time I graduated there were no decent paying jobs on Vancouver Island). When I finally got a ‘career job’ later on that year, I began paying the collection agencies, just waiting for the day when my six years would be up and my debt would disappear from my credit report.

    But from looking at the Statute of Limitations for Ontario on your site, I’m confused about where ‘debt reinstatement’ comes in..am I “acknowledging” my debt simply by paying the debt collectors each month? In other words, am I unknowingly extending my ‘limitation’ period? And, based on the Financial Consumer Agency of Canada website, I always thought that after six years from the date of delinquency, the debt wouldn’t appear on my credit report…Is my credit report a different issue from collections agencies/creditors still being able to come after me after the six years are up? And where does the two year limit come in? I’m so confused.

    Any help you give me will be greatly appreciated, and I’d be happy to give you more information or clarify anything. Also, I was living in BC but that was just for school, my debt is ON debt.

    Thank you so much.

    • Linda

      Yes. By making payments you have reset the SOL. The two year limit comes in one month AFTER you make your last payment (or use) of the debt. You are now better off to try to come up with a settlement.

      Typically that is how it works.

  • Stressed

    Hello, I have a couple credit cards from when I was younger and stupid with my money that I have maxed out. It’s been about 8 or 9 years since I’ve touched or paid those credit cards. I went to the bank 2 years ago to talk to someone about my credit score and how to better it as I had a few phone calls claiming they will take “legal action” so it freaked me out that’s why I went to the bank to discuss my credit score. She looked up my score and didn’t see any debt owing or collections on there so she started me on a very low limit Visa card to help build my credit. Fast forward to about last summer, I got some more phone calls claiming to take “legal action” again so I went to the bank again. They looked at my credit score and I paid online to view my credit score through equifax and I have just under excellent on their credit score and the lady at the bank wasn’t able to see any money owing or anything from a collection agency. She even called the 800 number from her work phone and no one picked up and she called twice during my meeting with her when she finally concluded that it was probably a scam. I know I still owe money on my visa and a store card from about 8 yrs ago with my limit to both cards totalling $4500 which I have maxed out at that time. Now I’m getting phone calls again and it’s stressing me out and I don’t know what to do… I still don’t have a lot of money but I am wiser or smarter with my money and have always paid my current credit card in full. It just worries me that they’ll phone my work, family members phone or garnish my wage? If they can even do that…

  • jolene

    Hi,
    there was a lien on my fathers property, hes been dead for 8 years, should the lien be lifted now

  • Traci Arcamel

    I just had the collections “offset” $5000 of my money from my account to clear a portion of my debt. Does that count as a payment? Is the statute of limitations reset now?? I also had a bank representative talk on my behalf trying to settle the rest of the debt owing as there was $3700, and they’ve offered me settlement letters for less that $5000 so I figured they would clear the debt but instead they just wanted more money! ha! Imagine that!! Anyways, does that count as acknowledging the debt?

    • Traci Arcamenel

      Also now that the law has changed in BC to 2 years for Basic Limitation Period, does that mean even if it is reset, that it is only for 2 years? Thanks! :)

  • Dave

    When I moved out of Québec in 1998, I owed the provincial government, I think, around $3k in taxes. I haven’t paid it or acknowledged it. Is it beyond the statue of limitations now? What if I move back to Québec some day?

    Thanks!

    • Backslap_Bob

      I believe the SOL for taxes is ten years. I could be wrong about that.

  • cintia

    hi i have a debt for 200cad from bell in 2009 they were calling me everyday but now they sudenly stop shold i pay them

  • Blueivy

    I received a letter from a collection agency (Commercial Credit Adjusters Ltd.) regarding a RBC Student Loan (Ontario Student Loan) from 1996 regarding an outstanding debt of $9,000.00. They say “I have six days to pay the debt in full unless otherwise instructed. We remind you that this delinquent account may have an adverse effect on your credit rating. If we do not hear from you within the specific time frame, further action could be initiated without notice.”
    I have not made contact with this agency. I know this debt was on my credit report many, many years ago.
    Can they collect on a debt that is now 17+ years old? Also, I am sure that the amount they are claiming is mostly interest? What can they do at this time? And is this debt past the SOL time? What are my rights?

    • Name

      Clearly, the person posting as “credit collections” has NO IDEA what they are talking about…. RBC accounts are clearly bank accounts and the moment you answer the phone and acknowledge the debt the time frame on which the debt is set to stay on your credit report gets restarted… Clearly, you have picked up the phone and acknowledged otherwise it WOULD NOT still be in or circulating in collections….

      ALSO

      Collection agencies DO NOT buy debts.. they are hired to collect so, your theories are completely WRONG… Only personal home based debt collectors buy debts to recollect. do some research before trying to act like you kow what you are talking about. silly twits

      • Chelsea

        Absolutely- this person has no clue..Clearly not in the industry- which I find intriguing considering their posting name.

    • Credit Collections

      No they cannot legally go after you for this debt once it had passed the statute of limitations. The wording that you have is common. They don’t say that the debt WILL have and adverse effect on your credit rating and they don’t say that further action WILL be initiated without notice. They say MAY have an adverse effect and COULD be initiated. They know they cannot legally collect it through the court system so they use double speak to scare you into paying them.

      This debt is too old to legally collect in Canada.

      Commercial Credit Adjusters are one of the sleeziest collectors out there and they simply buy old debts for pennies on the dollar and try to manipulate you to pay. Even if they get just a few hundred bucks out of you it was worth their effort.

      They cannot sue you unless you admit to the debt or unless you start paying on it.

      My advice is to write them a letter and send it registered mail where you state to you DO NOT have an outstanding debt and that they are to cease all contact and pursue action against you in court.

      Or if you prefer you can ignore it, they will send a few letters like you have received and then a few will come with settlement offers. If they are unable to collect they will likely sell it to another next collection agency.

      DO NOT PAY OR ACKNOWLEDGE THE DEBT and you will be fine.

      • canadian

        I guess you learnt this the hard way by now but student loans have no statute of limitation in Canada. It’s the trade off for a prime interest rate. I recommend you make a deal and pay it off. This is the one exception I know of, you cannot even bankrupt on a student loan. It is however tax deductible at least

        • http://windsordebtrelief.ca New Beginnings Debt Consulting

          This needs more clarification. There is a limitation to student loan debt that is older than 7 years in Canada. However, in order to eliminate or reduce what you owe, the debtor must take action in one of three ways. (1) file for bankruptcy (2) file a consumer proposal under the bankruptcy and insolvency act or (3) negotiate an informal settlement with the creditor. If the debtor just ignores the debt the creditor has every right to pursue legal action against the debtor until such time that the student loan debt has been satisfied with one of the three options above. If you need further assistance and live in Southwestern Ontario, please give our office a call at 519-962-9536. We will be happy to assist you and discuss your situation in more detail.

  • Blueivy

    I received a letter from a collection agency (Commercial Credit Adjusters Ltd.) regarding a RBC Student Loan (Ontario Student Loan) from 1996 regarding an outstanding debt of $9,000.00. They say “I have six days to pay the debt in full unless otherwise instructed. We remind you that this delinquent account may have an adverse effect on your credit rating. If we do not hear from you within the specific time frame, further action could be initiated without notice.”

    I have not made contact with this agency. I know this debt was on my credit report many, many years ago.

    Can they collect on a debt that is now 17+ years old? Also, I am sure that the amount they are claiming is mostly interest? What can they do at this time? And is this debt past the SOL time? What are my rights?

  • craig

    Hi, My wife and I have some old debt. We live in Ontario. The housing tribunal ruled against us 10 yrs ago. A collection agency called last month and said if we didnt pay that they would garnish my wifes wages. after 10 yrs can they do that?? The collection agent said that the court order overrules any length or statute and they can take my wifes wages. is this true?

  • Scott

    I just got a Equifax report because my six years is long past and I wanted to check everything out. There is a old RBC overdraft from commercial credit that reported in Jan 2013 stating that was the last payment. That is completely false, I have not made a payment to them for over 6 years. I spoke to commercial credit, and she was going on about the statue of limitations is false and so on, and trying to get me to make an arrangement. I said no I will not make any arrangements. How can they fabricate I made a payment? How should i deal with this. I have been living without credit for years, almost 10 years. I have grown up, and I need to move on. Please advise.

  • kimo

    i have been paying capitol one 10.00 per month i am a senior so I sent my card cut up to capitol one by registered mail i have never missed the 10.00 payment and now they have a default judgement on my property I thought credit cards were unsecured creditors and could not do this please advise I have Parkinson and this is stressing me out

  • John

    I have a Federal/Provincial student loan which I received in Newfoundland. This was in 1999. I applied for interest relief in roughly 2004 and haven’t heard anything or made any payments since. It’s no longer on my credit history on TransUnion or Equifax. I’ve been told different stories from different people about whether these loans can be enforced after so much time has passed. The original loan amount was for just under $7,000. One of the horror stories I’ve heard is from an aunt who told me her bank account was frozen and funds removed because of a 20 year old student loan. This also conflicts with threads I’ve seen on sites similar to this one saying that the statute of limitations had run out and the loans had been written off. What’s the truth about this? Should I consider paying off my loan? Or should I treat it like any other debt that’s gone to collections and forget about it?

    • Chelsea

      WHY ON EARTH WOULD YOU FORGET ABOUT IT? This is a debt that YOU incurred…all people in this forum are ridiculous- you’ve brought all of this upon yourselves- yet everyone bitches and complains when the CREDITOR WANTS THEIR MONEY BACK…. How Ludacris of them…Jeez

    • Credit Collections

      The previous reply to your question was deleted as belonged to a fake account with an IP address that belongs to Commercial Credit Adjusters.

    • Credit Collections

      Banks you owe money to can take your money so I would not bank with whoever wrote the student load. Unless you are planning to go back to school and get another student loan then I would not advise paying it as it’s too old. If you start paying now and its being paid to a collector, they will reset the SOL and put you on the hook for interest. If you do want to pay it, then I would suggest saving the money and NOT make payments. It will be easier for you to negotiate a settlement with ‘cash in hand’ in the future because if you start making payments the collection agency will keep harassing you for more or could take you to court.

      As it stands the debt with no payments in the last two years is not collectible in Newfoundland courts and if no payments have been made within 6 years then it cannot appear on your credit report.

      Student loans are a common debt and the older they are the harder they are to collect. Me personally, I would forget about it.

  • Ddouble

    If it has past the SOL, can they put it on your credit?
    How do you get it removed from your credit rating? Does the SOL restart if they
    Put it on your credit?

    • Chelsea

      Yes, it can still be reported- and will be for 6 years

    • Credit Collections

      No it cannot. Chelsea’s Comment has been deleted because the IP address belongs to Commercial Credit Adjusters. They are a collection agency.

  • Marcus

    I racked up about $9000 between two different credit cards from two different banks. It’s been almost 6 years since I’ve made any contact with anything to do with it. What’s the real story about what’s happening to my debt? Does it just get erased? Can I act like it never happened and just get a bank account again and apply for loans? If I make any attempt to contact the creditors it gets reset? I just want to live a life again free from fear of what could come around the corner. The banks aren’t looking for me right? They sold my debt to the creditors? Any help would be greatly appreciated before I go ahead with anything.

    • Chelsea

      Marcus- not all debt agencies BUY and SELL debts- there is one that I am aware of in BC. CBV Collections. If they original creditor has HIRED a third party to collect on their behalf, deal with it. Honestly. Do the right thing. The banks will be able to tell if you’ve had bad reps with others in the past. Take the initiative and take care of your bills. You’re the only one to blame here.

    • Credit Collections

      Marcus ignore the previous comment by Chelsea. The IP address of the poster belongs to Commercial Credit Adjusters.

  • tammi

    I have gotten a call from a debt collector, trying to collect a debt from over 7 years ago. I told them that “I don’t have any outstanding debts and I’m disputing the debt and I’m advising you to stop all contact and seek legal action.” Then he put his supervisor on the phone. I told his supervisor the same thing and he tried to get me to admit to the debt. I repeated that I do not have any outstanding debt. He asked if I had proof of this and I said, “I have my credit report.” He then told me what debt he was referring to and the date…..2007. I said, “SEVEN years ago.” And he said “yes”.
    Long story short, he asked me to fax in a “stop all calls” letter. He wouldn’t give me the company address but I’ve found it online.
    Do I send them this letter and what exactly should I say in it?

  • Credit Collections

    It appears that our website has had it’s first hit of trolls trying to hide themselves as ‘helpful citizens’. Several comments have been deleted because they have given false information in an attempt to get you to pay collection agencies. The individuals may have used different names and email addresses but the IP address of the posters, are both resolving to cca.ca which is Commercial Credit Adjusters. This site is moderated daily and comments made by these deceivers will be deleted as soon as possible.

    • Dave

      Wow that’s low. Thanks for sharing!

  • Dave

    Can a collection agency hound you out of the blue for a 13 year old Bell Canada debt?

    • Credit Collections

      That’s not uncommon, I have clients that are being contacted for debts older than 20 years. First, they cannot legally collect it, it’s too old, second they can contact you as long as it’s within the guidelines of your provinces credit collecting legislation. They cannot harass you for money though and they cannot lie to you to get the money. If you have the name of the collection company, simply write them a letter and state you do not have an outstanding Bell Canada account and instruct them to stop all communication attempts with you and to pursue the matter with the courts. Inform them that you will make a Consumer complaint with your province if they continue to initiate contact outside of the legal system.

    • steve

      Bell Canada can go suck big ass monkey balls…bunch of faggots…ignore them

  • Ewf004

    Hi all – to my shame I have let part of my student loan spiral out of control and now it’s been 6 years since the last payment – I read below that the ligation act could come into play. How does one enact the protection of limitation with a student loan with the CRA / HRDSC? (If possible) is there a firm / letter one ca use or do I need pro help in this matter?

  • Paul

    I’m just wondering if the SOL applies to the province that the collection agency is located in, or where the debtor lives? For example, if you live in BC, but are contacted by a collection agency from Ontario?

    • Credit Collections

      If your debt took place in BC, then it’s BC’s SOL.

      • Paul

        Ok, thanks. I’m also wondering when the date of discoverability starts? When you are first contacted by a collection agency? Or when? And if a debt is passed on to another agency, is the date of discoverability still the original or does it start over with the new one? Thanks!

        • SmartOneBC

          It starts the last payment you made to the company of the debt. Doesn’t matter how many collection agency’s it goes through.

          The last payment made to the original debtor is when it starts.

          • Paul

            Ok, thanks. :-)

  • Amy

    I had a company called National Recovery Service contact me this morning. I answered the phone but told them I was driving and that I couldn’t speak at the moment. The girl on the phone flipped out and yelled at me saying I owe HBC $2300 for a past due account but would not identify her company or her name. I told her I had never had an account with HBC so there must be a mistake. She continued to yell at me. I told her once again, I am driving and she can call me later but to do some research and give me some detailed information and she better talk to me more respectfully next time. Then after I arrived at my destination I decided to call them back and complain to the manager about the rude girl that had just called me. Well he was a little more civilized but just as bad. He told me my credit report but was in great standing and that I wouldn’t want this past due account to ruin that for me and risk my chances of getting a mortgage one day. He said they would garnish my wages and that I had 24 hours to give them a solution before they take action. When I asked him for more detailed information about the account and explained to him that I had never had an account with HBC he ignored my request and asked me when I could start making payments to which I told him “NEVER” I don’t own that debt in the first place. Apparently it’s roughly 10-11 years old. I understand the SOL would apply here but my question is: Can they screw up my perfect credit??

    • Adrian

      No they can’t. Next time the call tell them you are disputing the debt as it’s NOT yours and that they should take the matter to court. What province are you in? I did a google of National Recovery Service and couldn’t find anything in Canada but I did find an office in Kansas. F rating with 22 complaints! LOL. If it is your debt it’s too old to collect through legal channels so they try to manipulate and trick you into paying it. Just be warned if you did pay it, then they can update the debt as paid on your credit report and it will be there for 6 years.

      • Tracy B

        I received a letter last week from this company as well as numerous “rude” calls demading I contact their legal department. The letter stated I owed HBC as well. I will follow the advise you have offered Adrian as well as advise I have read on various other sites and send a registered letter demanding they cease all contact. I did have an outstanding debt with HBC from 10+ years ago which was paid in full and there is absolutely nothing on my credit report. And from what I understand, even if I hadn’t satisfied the debt in full it’s way past the SOL to do anything about it other than harass.

    • SmartOneBC

      It’s not on your credit report after the sol. Tell them to take a hike and don’t have any debts.

  • Kyle

    Hello, I just received a call from Iqor Canada stating I owe virgin mobile ~$150 from 2009. First off, I have never owned a phone from them and second of all, this has never appeared on my credit report nor have I received anything in writting. Mind you I have moved several times since then but I have had the same number since 2007 so how have they not called me? Are they able to collect? I have not acknowledged the debt by any means but what can I do? I don’t want it to all of a sudden post on my credit report. Thanks!

  • David

    Hi, got a call from a collection agency about a bad cheque from 2003. Wasn’t aware of this debt; They are trying to get an exorbitant amount of interest. The original cheque was about $160.00. They are trying to collect $500.00. Is there anything they can do to collect besides calling you with rude phone calls? Live in BC if that makes any difference.

    • SmartOneBC

      Say you don’t have any debts hang up on them.

  • Rodney

    Hi there …I live in alberta have debt with many collection agency’s when the res session hit I lost my job lost my house everything it’s been 5 years now these people won’t stop calling I haven’t answered any of there calls in 5 years what can I do

    • mason

      Answer the call and do not acknowledge the debt as the SOL may apply.

      • SmartOneBC

        Acknowledging the debt by phone does not reset the sol. Wish people would quit spreading this false info.

        • mason

          Court action can always be taken even after a disputed sol. May not go far but To me the best would be to not acknowledge the debt.

          • SmartOneBC

            NO it can’t quit spreading false information. Bet your a collection agency TROLL…….

            Once a debt has reached SOL it’s off your credit. A person owes NOTHING an owes the harassing collection agency squat! Just hang up and ignore them.

            The usual you have 10 days to pay, fake legal documents etc is all they have left to try and trick you to send a payment. Even 5cents.

            Eventually they will give up an sell your account to someone else and they will try again. Round and Round. Good thing only so many collection agency’s in Canada. Sooner or later you will go through them all and they won’t buy an account that will never pay.

            Remember they bought your debt for pennies on the dollar. Only one to make money is the collection agency. The company has already written off the debt (you owed money too)

            Collection agencies are the scum of the earth! Why telephone companies created call blocking!

          • mason

            Not acknowledging is basically the same as ignoring. Btw I am not a troll …a search for SOL brought me here. I was in dispute with a company that had made an error and I always said that I did not owe anyone anything.

  • Rodney

    Have had debt in alberta for 5 years haven’t an sewed the phone on this debt for 5 years what can they do?

    • steve

      change your number…problem solved

  • Rodney

    So have had run of bad luck 5 years ago now these people call ever day for the llast years I haven’t answered the phone what can I do to get rid of these calls?

  • Zoltan

    I received a letter by registered mail for collection of of a credit card debt from a law firm representing RBC bank. the amount is 10,305. What is the likelihood they will pursue a garnishment of wages? Should I acknowledge the letter and offer a payment plan? The account is in mine and my Ex wife’s name. I live in BC. The statute of limitations has not passed

    • SmartOneBC

      You can take your chances but since the sol isn’t even close and is a bank. Don’t see much recourse for you. Depending how much the debt is the bank may or may not go after you aggressively.

  • Alex

    Hi. I have a credit card debt for an initial amount of $11500, i lost my job twice since 2007, and the account went on collection. My last date of activity on my credit report is december of 2009, since then i had a few different collection agencies contacting me. The most recent one is about a month ago stating that i owe $17000 and the usual story behind. I sent them a few emails offering them a sum of money, i have a good and steady job now, but still a lot less than the $17000. Can they reset the SOL because of my emails. Thank you.

  • Alex

    For my question previously, i have to add that i am in Quebec.

  • http://batman-news.com Mel

    Hi, I have a government student loan from 2007 that is unpaid. About 4 years ago the government started keeping all the money I was supposed to get back from my income taxes. I am a single mother of a child with a disability. Needless to say, I usually receive back a large amount. This year I decided to contacte the government to see where my debt is at. It should be paid by now! The federal government told me that they would not seize my return money anymore because of the SOL. But when talking to the provincial government, all the guy would say is “no, we don’t have that SOL law. You have to pay and we will continue to seize your income tax money until the debt is cleared” So I asked if I could make installements instead, so they could leave me my income tax money. He said “Why would we do that? You can’t do anything, we will continue to seize your income tax money”. I’ve tried to call at least 5 different times and it is always the same guy. And he will not let me talk to anyone else! He told me the amount owed and the debt did not go down, it went up becausse of the high interest rate! And I can’t stop paying because they just seize my income taxes! I am so frustrated! Someone suggested not filing my taxes at all. Is this what I should do? And why would the federal government apply the SOL and not the provincial government? My student loan was in New Brunswick.
    Thank you for any advice you may have!

  • RealTalk

    In 2011 I was contacted by a company asking about a debt that I owed for a credit card from 2005. I acknowledged the debt verbally (not knowing my rights at the time). I was wondering if that would have reset the SOL. I have recently been contacted by a collection company. I have no idea if it is for the same debt as I hang up on them before they can say more than asking for me by name. , It must be, because I have no other outstanding debts.

    Basically my question is, what is required to reset a debt, can it be reset through a verbal acknowledgement or do I need to provide a written statement or make a partial payment?.

    Also, what are the ways that they can reset the SOL without my knowledge. Can they file a statement of claim on the debt and then withdraw it, solely for the purpose of resetting the SOL?

    • Wayne

      I’m on this one. I acknowledged said I would try to get money to pay em off sent email later saying I couldn’t. Nothing hand written or signed …. Did I restart it the sol. New Brunswick here

    • SmartOneBC

      Verbal is not acknowledging the debt. Till money changes hands you haven’t acknowledged the debt legally. Just ignore them.

  • Futures Trader

    I have a question regarding my credit report. Here is some background on my situation. I had a business (2009) that went under and had some bad personal debts due to the business failure. I was looking at claiming bankruptcy at the time, however I was advised that my best course of action was to wait until I was served with a judgement before claiming bankruptcy. I did that and was never served nor, to my knowledge, been sued. the last payments I made on my debts (which included, 2 unsecured credit cards and 2 line of credits) was Oct 2009.

    I recently had requested my credit report where I have 2 last activity reports from 05/2010 and 10/2010. I have not acknowledged the debt. The only thing I can think of was a phone call I received (approx. 05/10) that as soon as I heard it was a collection agency I hung up. The other incident from 10/2010 shows up as me opening an account with one of the debtors 01/2010. This is untrue as it is a chequing account (opened 2004) which had an overdraft that they kept using to pay minimum payments. This account was overdrawn.
    My question is: Can the last activity be related to that phone call? What can I do about this? and about the chequing account that is obviously created to extend the 6 year limit.

    Thanks in advance for your reply.

    • mason

      I would say no but I am an expert.

  • Toney

    I have credit cards debt where all my purchases were made in Quebec and move to BC, which statue of limitation applies ?

  • Enrique

    I am hoping you can answer a couple of questions for me. I am wondering how long it takes a debt to drop off your credit report after the SOL has been reached. Also, if you don’t know when the SOL “timer” started and you’re not sure how long it’s been since the last activity on the delinquent account, how would you get this information without acknowledging the debt is yours?

    • SmartOneBC

      Most provinces the sol is 6 years. You can simply write a letter to equifax or trans union and request a copy of your credit file. It’s free, or you can pay a small fee to the credit companies I mentioned to see your history online..

      You can then see what is or isn’t on your file.

  • Stressedmom

    We left PEI and moved west because we couldn’t afford to feed our family. We gave two months notice we were terminating the lease because we just couldn’t make ends meet. The landlord agreed to this and said he would charge us two months rent for breaking the lease. Things are tough and we haven’t gotten paid yet in full but I did send him $300 last month and he is threatening now to get a judgement for the rest of the year if we don’t pay. Balance in full. Can he do that? If so, what happens who there is a judgement?

  • Susan Stirling

    I had an overdraft back in 2003 with RBC that was not paid….due to circumstances I won’t get into here. I contacted RBC back in 2005 to re instate my account and they said once my overdraft was taken care of they would open the account again. I was not in a financial position again to try and pay this off. Last I heard until NCO Financial called yesterday. I had totally forgotten about this debt and due to serious illness issues am on a disability so still not in a position to pay. Can this company still try and get me to pay for this? I told the person it was so long ago and yes I could remember and now they want payment immediately and will give me a deal on less interest. I just need help as to where they legally stand and if I now have to pay for this. The person said go to relatives/friends or my bank now and they will call me back in a few days. Any advice would be appreciated.
    Thanks

  • Cookie

    I went through a separation in 2008 and was left with all the debt incurred in the marriage. One of the debts has just recently come back to haunt me. The last activity or payment on this debt was in 2008. I received a letter from a lawyer who acts on behalf of a Collection Agency threatening me with legal action. The letter reads “TAKE NOTICE that unless the aforesaid sum is paid within 10 days of receipt of this letter my instructions are to commence legal proceedings to collect this account without further notice”. It then states that “You may avoid this action by making paymnet in full within 10 business days. If you rpayment is not receveid within 10 days, your nest communication from me won behalf of my client may be service on you in either a Notice of Claim (Provincial Court) or Notice of Civil Claim (Supreme Court). It goes on to threaten garishment proceedings or seizure of my property. The debt was 15,000 at the time of default. They are now stating that I am indebted to this Collection Agency for $43,749. This is ludicrous. What should I do? I have not called or reponded in any way to this letter.

    • SmartOneBC

      Just ignore them it’s a scare tactic for you to pay them anything. If you even pay .01 you acknowledge the debt and screw yourself. It’s the usual we will send the lawyers after you if you don’t pay in x amount of days or commit to a payment plan.

  • Jo

    Hi.

    This has been going on, off and on for a couple years now and it scares me everytime. I got a call on my cell today from a company that internet tells me is CRS Apparently they deal with Canadian Tire MC, which I did have. A limit of $1000 and I last used it 10 years ago, probably went to collections 8 or 9 years ago. I do not want to deal with these people, I have enough on my plate right now.

    Can I safely ignore them?

    • SmartOneBC

      Just ignore the calls and letters. The SOL has long passed if you ignored the debt. You can easily get a credit report and check your credit file to make sure it’s really gone. If you send a request by snail mail it’s free to get your credit report.

  • http://www.coralseamercantile.com.au Coral Mercintile

    Very good information about Canadian debts. There are statue of limitations about the Australian states for debt collection.

    New South Wales: Simple contract: 6 years. Court judgment: 12 years

    Northern Territory: Simple contract: 3 years. Court judgment: 12 years

    Queensland: Simple contract: 6 years. Court judgment: 12 years

    South Australia: Simple contract: 6 years. Court judgment: 15 years

    Tasmania: Simple contract: 6 years. Court judgment: 12 years

    Victoria: Simple contract: 6 years. Court judgment: 15 years

    Western Australia: Simple contract: 6 years. Court judgment: 12 years

  • Dac111

    Hi … Both my wife and i have signed a promissory note. my wife has been the only one making payments for the last 2.5 years . i have had no dealing with the creditor.

    Q?.. Do her payments Bind me to the debit or do i fall under statute of limitations? help i am now being sued for a debit. that is not my responsibility.

    • SmartOneBC

      Being married and you both signed the promissory note, you’re both tied to the debt.

      If she was making payments there is no SOL. When was the last payment made?

  • Jpm

    Hello, I pulled a equifax report on June 9 th of this year and found a collection on it. The date assigned was sept/2013, but the date of the last payment was on February / 2010. I know what it is, I cashed a paycheque from my old boss, at money mart and he bounced it. He assured me he would take care of it, and he must of paid most of it back, but left $540.00 really nice guy! Because that’s what is showing for the amount. I was having a difficult time getting back on my feet and didn’t have a bank account at the time. I’ve never heard back from money mart in regards to this since the initial bouncing, nor have I ever heard form the collection agency that reported this to my bureau, in regards to this. So how can they put this on my report? I have also started an investigation with equifax, disputing the debt, what else if anything should I be doing to remove this from my credit report?

    • SmartOneBC

      They probably put a NSF fee on your account and since you never went back kept adding up. Is what i would assume. Since it was on your account so long, they sent it to collections. I am sure they tried getting a hold of you. You probably moved/changed your phone number..

      A collection agency can find you pretty quick if working.

      You will have to get all the information needed from Money Mart. Sure you have had something from a collection agency more then once. It’s not up to equifax to prove the debt isn’t yours.

      Worse case scenario get all your ducks in a row and take this ex boss to small claims court to get the money out of him.

      It’s on your credit regardless now for 6 years. Unless you win the disputed debt claim.

      • Jpm

        Not quite sure I understand, I thought the statute of limitations was 2 years? This debt goes back to 2010? So the collection agency can’t sue but post it on my bureau even after 2 years?

  • GoldenLady

    My Uncle purchased a home in Edmonton Alberta back in 1991. We recieved a phone call from a debt collector the other day (2014) stating that there was an unpaid balance of $26,000.000 on the home.. In the 23 years he has lived in the house, he has never recieved a notice saying he owed any more money on the house. They have now put a lien against this property. My question is, can they do this.

    My Uncle says he doesn’t owe any body anything and asked the debt collector why it took 23 years to file a lien. He got no response to his question. Is my uncle still responsible for this 26,000.00 even if there has been no contact for 23 years.

  • paleguy

    my brother’s student loan has called looking for him…he last paid on it in 2001, i believe it was a quebec bank…does he statute of limitations cover this?

    • http://windsordebtrelief.ca New Beginnings Debt Consulting

      Paleguy, see our comment above at the top of this blog. Student loans have different limitation periods. If your student loans are 7 years old or older you can file for Bankruptcy, file a consumer proposal or negotiate a reduced settlement. Student loans do not fall under normal limitation periods as the government of Canada and Provinces can withhold taxes, HST and provincial credits until the debt has been satisfied. If you have any questions e-mail us at shannon@beginnings-new.ca with your phone number and a good time to reach you and we can discuss your brother’s situation in more detail.

  • DeepC

    Hello,
    I recently got my credit report, to find out a cell phone company that I had an account with in 2009. Reported me to a collection agency 3yrs and a month later. after my account was suppose to be closed. I did not have a contract with them; I didn’t know cell phone companies were allowed to send your account to collections. Which leads to my next question is there a minimum amount for collection agencies try to collect the debt once the company has written off?

  • Sam

    Hi, I live in Ottawa Ontario, I have debts that were reported back in 2011 (Ones where the original collection agency sold the outstanding balance to another agency once we settled.) Going by what’s written above. They cannot pursue by lawsuit but they can still report the debts to credit bureaus and harass me? The 2 years are set once the collection agency acquires the debt? Or does the time frame start the date the original creditor reports it to the bureaus? I have been good on my end and settled my debts with the agencies.. but this is ridiculous! Thanks to all who help!

  • Nick

    How long can a debt be put in for collection in Ontario and be reported on your bureau? My bank informed me tonight that I have a collection report on my bureau from march of 2013, yet I have done no business with this company since October 2009. Are they legal allowed to list this unknown debt 4 years later on my bureau?

  • saywhat

    I have a question regarding resetting of the statute of limitations. I have an old loan from the Atlantic Canada Opportunity Agency (ACOA). This is a government agency. Whenever I have a tax refund it says on my notice of assessment that the amount has been payed toward the loan. Is this the same as making payments on the loan? BTW the loan is over 10 years old.

  • Brinksgurl

    I have had my named changed for 10 years and now I am having a creditor call and ask for me in my maiden name what do I do ?

  • Heather

    I have recently been contacted over a credit card that I held almost 5 years ago. The last payment was made July/09 while I was living in BC. I obtained the card in Alberta and currently live in Saskatchewan as a unemployed housewife. My question is which province’s statutes apply to my situation?

  • ash

    I had a phone bill that went to collections at least 8 years ago. I never recevied a single letter or call from any agency and only found out about it when i tried to get a credit card. Should this still be on my credit report and if its not what do i do about it.

  • C. George

    Hi. I had 2 years to go on a seven year car loan when the vehicle crapped out on me. I tried to get the bank to refinance the car so I could fix it and fold the balance into a new loan. Alternatively I suggested they fold the balance into a newer model loan. The figures were reasonable and I had previously made every payment on time. But I was turned down. So the car has been sitting useless in my driveway for 2 years. I want to give it away to Kidney Car. Can I legally do that?

  • Stressed

    I went through some rough times and was unable to pay for my car and line of credit… I asked the bank to pickup the car, but they just wrote it off. This was about 4 years ago +

    I just received a letter from a collection agency, saying they are adding interest to the loan… can they do that?? The original debt was written off by the bank, now the collection agency is adding interest??

    Live in Alberta and purchased car here.. short stint in BC and Texas

    • Adrian

      law in Aberta is seize or sue for personal vehicles. Check your contract for interest %. If the bank wrote the debt off this has now been purchased by a collection agency. If you gave back the vehicle then they can collect nothing. If you still have the vehicle and its past two years from last payment then the SOL has expired and they cannot sue. You may also want to do a lien search on the vehicle to see if its clear or still in place.

      • Stressed

        Yes there is a lien on the vehicle…and it has been past 2 years.. going on 4 years now. I tried giving them the car back and wish they would still pick it up…

        Also, thank you for your reply and for this website.. it has been very helpful.

  • craigy_s21

    Here’s one for you: I worked as an insurance salesman for an insurance company back in 2009 for straight commission. I left the company in November 2009. I never received anything from anyone from this company since that time. I did move shortly after leaving that company, but I have the same phone number.
    A couple months ago when checking my Equifax report I had a collection report on there from Bond Street Collections with a $700 debt from the insurance company. I emailed the insurance company to find out what the deal is because I never purchased anything. An agent from said company called me back saying that I owe them money for deals that didn’t go through and that I wasn’t vested. OK, but why wasn’t I contacted, and how did not only they fail to contact me, but the collection agency failed to contact me as well.
    I mentioned to the agent that there is a SOL of 2 years in Canada for debt collection and that they didn’t even follow proper due diligence in order to contact me. He claimed it didn’t matter. I demanded that he remove the Collection Report and to send me everything he has in his file to me for review. He refused until I was irate enough that he said okay to sending me the file.
    Assuming I get my file, what do I do? I want the Report of my credit file but I also don’t want to pay these guys because I feel I’m getting scammed, PLUS, it took them all this time to get to me. Please help!

  • rami

    hi i have 3 credits card for almost 13000$ in total and its been like 5 years and i didnt pay anything and till now the cca is trying to contact me but i answered only one time.
    what shall i do? my friend told me not to pay and wait 2 more years is that true?
    plz any suggestion?

    • Adrian

      Depends on province

  • Guest

    CIBC has sent (via registered mail) what looks to be legitimate small claims court papers for an outstanding CIBC Visa debt. They have stated in a letter attached by their lawyer that they can put a lien on my house. It says I have 20 days to respond for the small claims file. I have not had contact with CIBC Visa or made a payment for 2+ years (other than picking up this letter at the post office). I am unsure what to do next. What will happen if I don’t acknowledge the letter (other than the fact they know I picked it up)? There doesn’t seem to be a set court date in the papers that I can see. Thank you in advance for any advice/guidance.

    • Adrian

      What province did the debt occur?

      • Hmmmm

        Ontario ~ sorry for the double post (having pc issues)

        • Adrian

          You can either ignore it and if they do get a court date, if you are a no show and they cannot show that you have acknowledged the debt it will be thrown out. Or you can respond in writing to wherever the letter states that you do not recognize the debt and are disputing it. If this is an official small claims notice it will have the province of Ontario on the documents. If not, Google the phone numbers that may be on the letter and the address. I could be a collector trying to scare you into paying up. As long as you don’t acknowledge the debt and have not made a payment on the debt within the last two years it cannot be pursued in court within Ontario.

          • Hmmmm

            Wondering if they would stoop to making up something to say it has been acknowledged but hoping they would have to have solid proof as there is none. Pretty scary to think they could go ahead with judgement in his absence. I guess it can’t be worse than him being there though. Thank you Adrian. I will relay this information to my Father.

  • Hmmmm

    CIBC has sent (via registered mail) what looks to be legitimate small claims court papers for an outstanding CIBC Visa debt. They have stated in a letter attached by their lawyer that they can put a lien on the house of the debtor. It says the debtor has 20 days to respond for the small claims file. They have not had contact with CIBC Visa or made a payment for 2+ years (other than picking up this letter at the post office having signed for it). They are unsure what to do next. What will happen if they do nothing? There doesn’t seem to be a set court date in the papers. Thank you in advance for any advice/guidance.

    • Hmmmm

      Asking for my parent ~ hence the different posts (thought it would be better to be clear that it isn’t my debt in case questions are asked that I cannot immediately answer). Not deleting the first post as Adrian was already kind enough to reply to it.

      • Hmmmm

        … and not deleting this post as I signed in as a guest and can’t seem to, lol ~ feel free to delete if you’d like ;)

  • Tuddy

    Hi…I had financial problems 9 years ago I did credit council till I couldn’t do it anymore and in 2013 ..I got this debt collector send me a letter looked like a flyer at first was not a formal letter saying I owed money…wrote a debt collector letter to ask for a copy of the original debt sent it registered mail and didn’t hear back from till may 2013 which at this time they said dear miss or mr they didn’t even know my gender and said to provide name address if I was the person they were looking for why ask me all this info and shortly after that I got another photo copy flyer from another collection agency saying I owed them money but they do not say who I owe money to, what do I do when they don’t send me a signed contract after requesting one…this is so stressful…I won’t call them they got a hold of my unlisted number and have started to call my home, I have read some things here but I won’t admit to anything until I see it formal not a photo copy flyer …any advice would be appreicated

    • Adrian

      Check the statute of limitations for the debt. If you receive any more ignore then.

  • Fawx1974

    I have been contacted recently by FDR (financial Debt Recovery) in the last few weeks about a Zellers debt from 1998… they say its about $1900.. all they have as far as I know is my first and last name and my SIN. I have not admitted to the debt as I can not remember opening a Zellers acount 16 yrs ago.. what are my options with them?