"Original creditor name:
Your account number:

With regards to the above mentioned debt you allege I owe, I dispute owing this debt. If your client believes that I owe them money, I wish to have them take me to court and prove it before a judge.

In the meanwhile, you may not contact me with regards to this debt.

Sincerely,

"

The problem with many notes of this nature is that if you acknowledge the existence of the debt... or if you acknowledge ever having given them money on the debt... even if that acknowledgement is accompanied by a refusal to pay the debt... you have effectively acknowledged the debt and reset the limitations period. You do not want to do that, which is why an explanation of your position should not be included in the letter. If necessary, the explanation can be made before a judge.

Collection agencies are notorious for attempting to get a default judgement without actually serving you papers. However, if they do this, simply make an application before the courts to have it set aside for lack of notice about the proceeding.

Welcome back Angela....long time no see. Good to have you back posting.

Leafs fan......yes, substitue "I" where Angela has put "you"

Angella- in regards to your suggestion for the note..
Do I do any subsitutions for "you" and change it to "I" or leave it exactly word for word as you have. Better to be sure then sorry..

Yes it does mention "wage assignment" on the contract but I know already that is not possible to do without a court judgement in Ontario at least. I have read it somewhere I just can't remember where exactly..
My only fear was that they could get a default judgement without actually sending me paper work from small claims court.

They do have those terms, but they actually aren't allowed to garnish your wage even with your agreement. If they were able to do so, they wouldn't have sent the item to collections.

Just to chime in real quick here, I know some payday loan companies have a provision in their contract that allows them a wage assignment.

So they wouldn't need to take you to court and garnish you.

You should check the terms of your agreement out just to make sure.

Otherwise everyone is right: no judgment = no garnishment.

Thank You Angella....I will do exactly what you said to do....I would rather take my chances with CashMoney in Court than DCA...Even if CashMoney sues me it would give me great pleasure to make them face a Judge about this and try and justify the money they say I owe them...

Don't believe everything a collector tells you. It’s amazing how many people on here get so scared when they call and they tell them there going to do this and that.

PS... if you send them a note telling them that "with regards to the debt they allege you owe, you dispute that you owe this debt and you wish to have the original creditor take you to court." Make sure you phrase it like this... and only like this. Do not explain your position. Simply include the collection agency's account number, the original creditor name, and that one sentence exactly as I wrote it or you risk resetting the statute of limitations. Send it registered mail. Once that is done, they cannot legally contact you to collect this debt.

But, be prepared... I don't know whether Cash Money will sue you for this debt or not. I do know, however, that the courts rather frown on payday lenders and the exhorbitant fees they charge... so whether you would win in court or they would is up in the air.

They can get a default judgment if you don't file a defense but there's no such thing as an "automatic judgment"