Monty,
My lawyer has retired since he completed my proposal for me in 2003. In 2003, he wrote to the crown corporations and specifically told them that I was not responsible for the debt. (Sask Power admits to having his letter in my file) I have spoke to another lawyer (who happens to be a friend) and she tells me that she cannot understand how they feel they can hold me responsible for the debt. Unfortunately, my friend is unable to represent me in a court case. SaskPower tells me that their lawyer asserts that because the business was not re-incorporated in 2000 - but after I was no longer a director, - that I am responsible for the debt. I feel the victim because I could not decide if the business was reincorporated or what bills would be paid. In fact, the debt was incurred when I was not a director but because the business was not reincorporated it fell back to a propreitorship which the owners can then be held personally liable.
Sask Power has been very co-operative and has supplied me with the bills that were in the business name and then the bills that show the transfer to an account in my personal name. They are forthright in admitting that if the business has remained incorporated I would not be responsible. They argue that because the business was not reincorporated, the rules changed. I argue that my relationship to the business ended when I ceased to be a director.
I have not followed up with Sasktel to the same extent as I have with Sask Power..
Since I wrote my original post here, I am confident that if I pursued this in a court of law I would win. Doing so would be costly in terms of time and money. It is possible that a judge may order the crown corporations to re-imburse me for my expenses but there is no guarantee. If I were to hire a lawyer, I would likely incur costs higher than the amounts owing. If I were to file a claim in small claims court, my costs would be negligible but the personal stress and time would great.
Because all of this occured so long ago and the collection agency and the companies have not pursued the debts very aggressively, I feel somewhat reassured they will not start to do so now. Eventually, the collections will fall of my credit report and I can start fresh. Until then, I will live with the poor credit rating and the occasional phone call or letter from collections. If they become more aggressive, I may pursue this further, but frankly, right now, I don't have the fight in me.

L Smith
At first glance.... did you talk to your lawyer about this?

Secondly... did you in some way co-sign the debts on behalf of the corporation?

How are Sasktel and Sask power able to pierce the corporate veil?

You should check the original agreement with Sasktel and SaskPower when you set up the corporate accounts. They should have a copy of that.

Bart and others interested:
1. I did an informal consumer proposal - arranged by my lawyer - he contacted Sask Power by phone and by letter and told them in his opinion I was not responsible for the corporate debt and instructed them to leave me alone. He had also been our business lawyer and had been involved in the incorporation of the business. SaskPower was not included in the proposal because both my lawyer and I felt the matter had been dealt with. (I believe they had been included in the original registered consumer proposal that was refused.) They are the utility that currently has the collection on my equifax report. Recently (December 2005), when I contacted Sask Power myself, they indicated that they had a copy of my lawyer's earlier (from 2002) letter to them and they still felt that I was liable for the debt. They have promised to send me copies of the bills and an explanation of why they transfered the amounts owing from corporate business debt to my personal residential account. . Sask Power does not deny that the debts were incurred by the corporate business. They belive I am liable because the business was not reincorporated months before going bankrupt. The last payment on this debt was November 2000.
The second creditor is Sasktel and I was completely unaware of any monies owing tto them until I received a letter in November of 2005. It seems that they transfered the money owing from the business telephone to my personal phone. When I spoke directly with someone at Saktel, she would not confirm that this is what had been done. Last payment on this account was September 2001.
I have never spoken with anyone from the collection agency. To the best of my knowledge, they have never tried to contact me (at least not since 2003 when I completed my proposal- it is possible they did before... but I can't remember for certain) other than the two letters I received in the last two months.
2. Both bills originated in Saskatchewan..... I now liive in Alberta.

3. I received collection notices for the (Sasktel debt ) in my name at my current address from

Credit Bureau of Saskatoon

Collections 1977 Limited.

There address is:
304B 4th Ave N.
Saskatoon Saskatchewan

S7K 1K7
I do not remember receiving collecton notices for the Sask Power debt. I know the same collection agency also holds that debt because they are the company listed on my equifax report. I believe they contacted me regarding the Sasktel debt after equifax completed its investigaton about my complaint. By my making a complaint, Saskatoon Credit Bureau seems to have become more interested in me and that might explain why after so many years, they have chose to contact me and inform me of the Sasktel debt.
4. I was aware of the Sask Power Bill in 2002 when my lawyer prepared my proposal as mentioned in point one above. I was not aware of the SaskTel bill until November 2005. Sasktel tells me that they spoke with me in September and October of 2001 regarding this bill - I don't really recall these discussions but frankly at that time I owed a lot of money and calls from collection agents and creditors were commonplace and I was rather numb to it all. I do know that Sasktel was aware that I had moved to Alberta in September 2001. I have been living in Alberta since then.
5. Equifax emailed me the following response to the investigation:
"We have contacted CB Saskatoon to verify the accuracy of the information
regarding Sask Power. We received a response and confirmation from CB
Saskatoon that the information they have reported to Equifax is accurate
and factual. Accordingly, no amendment will be made to your credit file."

Thanks for your time! I appreciate any advice.
I have recently read the Fair Trading Legislation from Alberta and I think the Limitations may apply to me. It has been more than two years for both of these debts and I have never assumed responsibility for them. Can I use this as a defense to have the collection agent quit sending me mail and have the collection removed from my credit report?

I'll look into some specific Sask. law for you but in the mean time...can you answer the following:

1... where the two utility bills not including in the consumer proposals you worked out five years earlier?

2... What province did these bills originate?

3... What is the exact name... and address listed on the notices from collectors you received?

4... did you receive these in the earlier province..or Sask.?

5... What was the result of the Equifax investigation.... not the collector..but equifax?

In the mean time... for the readers out there... most provincial aws dealing with credit reports and information on these files generally do not allow the REMOVAL of info unless the bureau cannot prove it is correct. What they do allow usually is an opportunity to document your side of the story and put it on the file.

Debts incurred cannot generally be removed. (unless over the time limit) But the reporting of them..ie the rateing can be adjusted where verifiably wrong. And those who have been given evidence of the errors and continue to mis report can be held liable in courts of law.

But rather than going into too much detail..if you can answer each of the avove, then I can do some homework and see what advise I can then offer.

In the mean time..have a great New Years

BA

I was owned 50% of a business that was a limited corporation. I had 49% of voting shares and 51% of non voting shares. When my marriage ended so did my time as as a director of the business. Without being a director, I had no ability to make decisions for the business - no influence about finances and legal matters. My ex spouse, the only remaining director chose not to reincorporate the business. He chose not to
tell me of his decision to not reincorporate. Worse yet, he chose to spend foolishly

and send our business into insolvency. Eventually he declared personal and

business bankruptcy. I had signed some personal guarantees on business debt

while I had been a director. I was now personally liable for these debts. I did not

sign guarantees for all debts. I did not sign guarantees for utilities. Now, five years later, after I have made restitution to all my creditors through an informal proposal

(perpared by my lawyer - long story as to why it was an informal proposal - short version - registered consumer proposal was refused.) a collection agency acting on behalf of provincial utility companies says I am personaly responsible for business debt because I owned half the business and it was not reincorporated. The agency reported one utility company as a collection amount on my credit report some time ago. Only after I asked equifax to investigate this did I receive notice of the second utility company's debt (five years after the account had been closed!) Confusing yes. Do I owe? No.

But how do I get defamatory info removed from my credit report? I have filed a complaint with Equifax and they have investigated, but the collection agency

remains convinced that I am responsible for the debt and refuse to remove the collection item from my report. I no longer live in the province (Saskatchewan - now

an Albertan!) and fortunately no longer need the services of the utility companies.