In Edmonton, Canada.
I have a renter who owes someone money. The renter has not paid the debt. The creditor is saying they can put a lien on the house he is renting from. Is this true?
2007-03-01 09:52:43 · 5 answers · asked by Wyrd Inc 1 in Business & Finance ➔ Credit
This just isn't logical - the creditor is going to attach an asset that doesn't belong to the debtor? I'm sure the creditor is trying to come up with ways to convince the renter to cough up the money owed, including inventing outrageous claims like this.
If these are just verbal threats, I'd ignore it. If your renter gives you any written evidence of such a claim from the creditor, however, I'd follow up with a letter to the creditor letting them know that making false claims like this is illegal.
2007-03-01 10:22:58 · answer #1 · answered by Marko 6 · 0⤊ 0⤋
Wow. I know nothing about Canadian Laws but I will guarantee you that a creditor could not do that in the U.S.
How can they put a lien on property that the debtor does not own? That's insane.
That would be making all landlords responsible for all debts their tenants run up and that doesn't even make sense. You can't force your tenants to pay their bills (except the rent they owe you).
I'd have to say no way. They're probably just trying to get you to hassle the tenant. It would actually be an illegal for a creditor to even say that here under our Fair Debt Collection laws and you'd be able to report them but I don't know what types of laws Canada has for stuff like that.
Additional info: I just found some Canadian law for you (link below). It is apparently illegal for a collection agency to contact friends, employer, relatives or neighbours for information, other than to get your telephone number or address.
If they told you they were going to put a lien on your property for your tenants debt, they broke the law by even contacting you. They only thing they can ask you for is the tenants phone number.
2007-03-01 10:01:29 · answer #2 · answered by Faye H 6 · 0⤊ 0⤋
They can't put a lien on anything that the debtor doesn't own. In the US, they are violating Federal law by making the threat. Unfortunately, collection agencies make violating the law standard practice. Their job description is VERY simple. Do ANYTHING that will SCARE the debtor into sending money.
2007-03-01 11:04:21 · answer #3 · answered by STEVEN F 7 · 0⤊ 0⤋
No. A lien on the house would go against the owner of the house, not a rent paying tenant.
2007-03-01 10:00:27 · answer #4 · answered by TaxGurl 6 · 0⤊ 0⤋
Assuming the debt has nothing to do with the house (i.e. a new hot water heater) then no.
2007-03-01 09:57:50 · answer #5 · answered by Box815 3 · 0⤊ 0⤋