Collection Agencies - interest - Canada

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RE: interest

Postby Bill K. Lecter » Thu Nov 26, 2009 03:43:37 PM

The original contract persists, it has simply been assigned (and in this case, assigned in the legal sense means sold, not simply "placed") and all your obligations go along with it.

It's entirely legal... (see s53 of the Conveyancing and Law of Property Act)

http://www.canlii.org/en/on/laws/stat/rso-1990-c-c34/latest/rso-1990-c-c34.html#BK52

They aren't allowed to add "fees" though (like "collection fees") unless you also agreed to that.
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RE: interest

Postby alberts » Thu Nov 26, 2009 08:56:16 AM

Okay yes then Richard my question remains the same. Do they get away with it just because noone either knows about it or does anything about it. Then when your mortgage is sent to collection which rarely happens because they are insured, is it the banks name which the agreement was made or the investors name who actually lost the money. I am not talking about what happens for whatever reason I am talking about if the collection agency actually went to court and argued this because they would have to prove the debt to them in court would they actually get the fees and everything?
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RE: interest

Postby RichardC » Thu Nov 26, 2009 11:25:05 AM

Think about it... most people dont know this but almost none of the banks that do mortgages actually end up holding them... most are sold off.

So if you get your mortgage with ABC bank of Canada are you telling me you dont have to pay it (or pay interest) becasue its sold off to an investor?

Its the same thing.
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RE: interest

Postby alberts » Thu Nov 26, 2009 08:23:54 AM

But Richard does it legally or is it just because they have gotten away with it because no one has challenged it. You have made no agreement for any of that with the company trying to collect so how can they charge you something that you did not agree to?
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RE: interest

Postby RichardC » Thu Nov 26, 2009 08:25:20 AM

No, the interest survives that process.

Otherwise all collection outfits would be in serious trouble with the law.

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RE: interest

Postby alberts » Thu Nov 26, 2009 08:10:23 AM

Yes I explained this wrong. If you get a loan and you default, the agreement that you have with that person becomes void when they sell that to a collection agency or write it off does that the ability to collect interest as well?
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RE: interest

Postby RichardC » Thu Nov 26, 2009 07:50:11 AM

Can you provide more info?

As far as I am aware the whole point of a loan is for the lender to earn interest, so I am not fimiliar with any loan products that are interest free.
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interest

Postby alberts » Thu Nov 26, 2009 06:50:37 AM

I have the following question. If a company can not collect interest on an account unless it is stated when the debt in incurred, then when a company sells your debt to a third party how can they collect interest or any other fees on that debt should that not stop all fees and interest once the original company sells the debt to someone else?
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