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!!!
      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:

        • 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.

  • 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:

  • 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:,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.

  • 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!

  • 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.

  • 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.

  • 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


    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.


    • 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.

  • 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 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

    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?


    • 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….


      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.

  • 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 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.

  • 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?