From my understaning, CIBC does not currently sell their debts. What typically happens is that a creditor will assign an account to a collection agency for a given term (called a "first" assignment) on a commission basis. After that time period, which is usually 6 months, if there is no payment the creditor recalls the account and then assigns it out to another agency for a given term (called "seconds"). This placement is usually for 12 months and is given to the collection agency at a higher commission rate and the collection agency is allowed to settle at a lower %. If after this 12 months, there is still no payment, the creditor recalls the account and either gives it to a third agency (higher commission rate with lower settlement parameters), they may sell it or they hold the file internally. As a result of the current economic conditions, more and more creditors are not selling their debts on these older accounts and are using collection agencies on older files (thirds) trying to get some sort of collections on them. CIBC does not sell thei debts but they do assign them to three agencies. My guess is that FD Recovery is able to settle for a very low % if you wanted to pay as CIBC knows it is past SOL and they cannot collect it through any legal avenues so they will take anything they can get or tell them to stop calling and they should stop or call CIBC directly.

Nice to know. So now that over 3 years have past and in my state of residence a debt that is over 3 years of age is considered SOL, they're basically SOL themselves? Right?

If cibc sold the debt in the first place you are correct. I never heard of a debt being re-sold, but anything is possible and it would be legal. I bet it can be sold over and over again till someone decides it’s not worth buying. If the collection agency that originally bought is selling it, it must be because they are hurting for money. The purchase price would be pennies on the dollar. I have a debt that was purchased and the collection agency bought in august/2007.I hope they do sell it for the simple fact I am not getting anywhere’s with the current collection agency.

So if I understand this correctly, not being a Collection specialist. CIBC sold my debt to a collection agency for pennies on the dollar which in turn re-sold it to another collection agency and so on. Now FDR from Ontario owns it, because they purchased it for also pennies on pennies, so to speak. So Financial Debt Recovery owns the debt and not CIBC. Am I right in my rant?

The only one from my experience that sells their debts is Canadian Tire. I heard that creditors are going to sell their debts in the future. I also heard that collection agencies will not because of the risk that they may not get the money or the person may file for bankruptcy.

My mistake, it was CIBC not RBC. I hate acronyms. Sorry about that.

I never heard of RBC selling their debts. I believe RBC gave the debt to the collection agency on consignment and the collection agency had no luck collecting. The debt went back to RBC and that’s why you’re getting calls from RBC’s collection department or from FD Recovery.

My husband received a call from a person calling from FDR (Financial Debt Recovery) in Ontario Canada. This concerns a Canadian SOL debt, over 3 years old which under Maryland law is time barred. I have never spoken to them.

My question is this, this person said that they where calling on behalf of the RBC and that they where not a third party, but we know that this SOL debt was tried by Global and NCO before them, can RBC recollect on a debt that they sold to a third party 4 years ago?

By speaking with my husband directly and giving him all the information to this debt, they have violated my individual rights under US law and Maryland law as well. The Agent said that they had on file a letter from the RBC that permitted them to speak to my husband, I had no idea that in Canada a letter of consent can be reassigned to another agency? Is this true?

What can I do, please help?

Thank you