In Canada, can a collection agency threaten to freeze your bank account on a debt 14 years old (i know it is ridiculous, since the seven years is up). What if I am considering declaring bankruptcy, should I tell them. I havent spoken to them yet because I dont know what to say and cannot afford to pay anytime soon.
2006-12-04 01:51:10 · 7 answers · asked by ShellBell 2 in Business & Finance ➔ Credit
I'm not sure about Canada, but in the US there is a statue of limitations based on the date of your last payment to the creditor. And a creditor cannot threaten to garnish your bank account or wages unless they have already taken you to court and received a judgment against you, they would be violating the Fair Debt Collection Practices Act.
2006-12-07 08:50:10 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I don't know about Canada's laws but collection agencies call and call and threaten all the time. just try to make a plan with them paying only the amount you can afford sometimes they will come down 75% off the debt if you agree to pay in full. I know I was injured a few years back and couldn't work then the bills got later and later. I have a lot of medical bills that are in collections and they always threaten their letters really try to scare you. we have a hospital that even their own employees are in collections once you walk in the front door the bill is being sent to collections before you even get your statement from the insurance. good luck I know the collection agencies are a pain that just won't go away even if you file bankruptcy they still call because they don't get the paper work I am still fighting a hospital bill 7 years old I have sent them copies of the paid insurance bill but they still call and harass me.
2006-12-04 02:00:22 · answer #2 · answered by kissybertha 6 · 0⤊ 0⤋
They can threaten to levy you if they refiled the claim just prior to the end of the first seven years. A levy still takes time to process, so if you're planning on filing bankruptcy within the next month go ahead and tell the collection agency. IF not, keep it to yourself.
2006-12-04 02:00:46 · answer #3 · answered by Erica B 3 · 0⤊ 0⤋
Before someone can freeze your bank account they have to get a judgment, and a writ of garnishment. You would need to be served before they could even attempt to do either, so don't worry about that. Sure, tell them you are declaring bankruptcy and to leave you alone. I'm not sure about Canada, but in the united states we have laws to stop people from calling us...it's called the FCRA.
2006-12-04 04:31:35 · answer #4 · answered by Kevin K 3 · 0⤊ 0⤋
Contact a financial institute or consolidation agency and ask if the collection agency can do this. I think they are trying to scare you into paying it even though the time to collect may be up. But you should ask someone who knows these things.
2006-12-04 01:57:33 · answer #5 · answered by suz' 5 · 0⤊ 1⤋
Tell them to get lost. In the US, I would instruct them that they are not to attempt to contact me again, under threat of prosecution. If they did, I would report the matter to the state Attorney General, who would have more than a few words with them.
2006-12-04 01:57:32 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Yes. They can THRETEN to do it but they cannot actually do it. Collection agencies can and will say ANYTHING to get you to pay.
2006-12-04 02:33:38 · answer #7 · answered by Joe K 6 · 0⤊ 0⤋