Collection Agencies - Advice Needed ASAP re. Default on Secured Auto Loan - Canada

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RE: UPDATE: Advice Needed ASAP re. Default on Secured Auto Loan

Postby wonderdog » Thu Apr 10, 2008 10:39:30 PM

This gal holds the title of "Qualified Bankruptcy Counselor" so I'm hopeful her training is fairly stringent... but as always, buyer beware.

I'll post the gist of tomorrow's meeting for the benefit of other folks in my situation.

Many thanks again for your time Angella. :)
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RE: UPDATE: Advice Needed ASAP re. Default on Secured Auto Loan

Postby angella » Thu Apr 10, 2008 10:02:51 PM

Sorry... to clarify my position:

Yes, I am aware that once it has expired it cannot be reset, however, I still prefer to not acknowledge it. It makes things more simple for me.

Your analysis is right. If acknowledge 2 months before the end of two years, you then reset and it is a further 2 years from the date of acknowledgement.

Double check any legal information the counsellor gives you. They are very good at what they do... help you learn to manage your money, but receive woefully inadequate training, for the most part, with regards to the ins and outs and legalities of the collections acts.

I had one tell me that if the collection agent sent you a letter every 6 years they could re-age your debt indefinitely.
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RE: UPDATE: Advice Needed ASAP re. Default on Secured Auto Loan

Postby wonderdog » Thu Apr 10, 2008 09:39:26 PM

Well... I think I'm more confused now. I've read that the date can be reset so perhaps that is meant to say it can be reset BEFORE it has expired, i.e. debt is acknowledged 2 months before expiration and is then reset to the full two years again. So I'm going to guess that they will have no legal claim since it has expired.

Interestingly, they contacted me prior to sending anything in writing so I was totally blind-sided. It took two weeks and numerous calls from him before I finally received something... a one page document that simply shows the original creditor's name and amount due... the same info he gave me over the phone. They do not have the original loan agreement nor do they even know what the debt was for.

I think I'll just defer further questions to tomorrow's meeting.

Thank you.
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RE: UPDATE: Advice Needed ASAP re. Default on Secured Auto Loan

Postby angella » Thu Apr 10, 2008 09:00:35 PM

Well... if the SOL has expired telling them so is not going to reset it. Those who would say you can't reset after it has expired it are correct. I, personally, just prefer not to deal with the hassle of proving it was expired before you "acknowledged" it.

Tell them they need to provide you with verification for this debt. If they don't do so they can't contact you. If they do, then you can point out that it is expired.
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RE: UPDATE: Advice Needed ASAP re. Default on Secured Auto Loan

Postby wonderdog » Wed Apr 09, 2008 07:41:47 PM

Thanks Angella. The last activity was September 2004. So does this mean the SOL would apply and that they cannot take me to court?

How do I tell the collection agent that the SOL applies without acknowledging the debt? I've heard they can reset the SOL date if I acknowledge it.

Thanks again!
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RE: UPDATE: Advice Needed ASAP re. Default on Secured Auto Loan

Postby angella » Wed Apr 09, 2008 06:59:50 PM

Nope. Their only recourse now is to take you to court... and only if it is not out of SOL.
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UPDATE: Advice Needed ASAP re. Default on Secured Auto Loan

Postby wonderdog » Wed Apr 09, 2008 05:23:57 PM

Hi there,

Just wanted to provide a quick update. I've determined that the loan provider sold the loan to a collection agency (as apposed to just commissioning them to collect) and it is out of the original lender's hands. I've also found that the lien has been removed from the car.

I have an appointment on Friday with a credit counselor regarding my situation but was just wondering if anyone knows if the collection agency has any recourse now since the lien has been removed. Can they have the lien reestablished through a court order or is the outstanding balance now considered SOL based on the dates and lack of security attached to the debt.

Many thanks for any advice!
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RE: Advice Needed ASAP re. Default on Secured Auto Loan

Postby wonderdog » Thu Mar 20, 2008 02:03:03 PM

Thanks very much Angella. I do appreciate your time and advice. :)
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RE: Advice Needed ASAP re. Default on Secured Auto Loan

Postby angella » Thu Mar 20, 2008 01:16:47 PM

I would try the original lending company. Since they still have a lien on your vehicle it is, imo, unlikely that they will have "sold" the loan, so should still be able to work with you. If they have sold the loan, I'm not sure what that does in terms of your collateral.

I'm not sure the "notification" requirements in Ontario. I know in Alberta they must give you 10 days notice.

I would recommend calling either a lawyer or a local student legal services line. Most lawyers will speak to you for half an hour for free. A bankruptcy trustee might know as well.
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RE: Advice Needed ASAP re. Default on Secured Auto Loan

Postby wonderdog » Thu Mar 20, 2008 11:48:23 AM

Angela, when you say "contact the creditor", do you mean the collection agency or the company in which the loan was originally placed?
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