Keep us updated when this comes up!

It looks like they're going to back off. The chances of them actually having the paperwork for this debt are slim. It's a lot more work for them when a defense is filed, so hopefully everything gets worked out in your favor.

Also, you got the money back that was taken from the garnishee correct? Sometimes it's held in court and you have to apply to get it back.

I went to court earlier in the month, and my garnishment is STAYED!!! =)

When the judge told me that, I was confused and too timid to ask what that meant, but the clerk did confirm it means my garnishment is halted until further notice.

The judge granted my motion, and I now have time to file a defence. The odd thing tho is that Contact Resources never showed up. And I sent them the court papers via registered mail, so I know someone picked them up. Both the court dates, the motion, and garnishment hearing, no one appeared. Even the judge thought that was odd.

average joe: you ARE right, CRS buys Canadian Tire debts, and they own my debt I had with CRS.

So I filed my defence. In the paperwork, I indicated that I requested debt validation from CRS, dated June 14, and so far I haven't received a response at all. Maybe they're just going to forget about the whole thing?

My next court date is 4 months away!!

I know for a fact that contact resources services buys the majority of canadian tires debts.If they did, then canadian tire is out of the picture.

Did you go to court? if not, consider;
1- You do not HAVE a contract with the collection agency. Your commitment is with the Canadian Tire.
2- Send them a Demand/Request (giving them 10 to 21 days time to reply) the CRS asking for time and location where you can examine the prof of their claim and communicate with you in writing (through post) and NOT call you on the phone.
3- Calculate the interest rate based on the time period elapsed, amount owed to CT and amount claimed by CRS, if over 60% it is illegal and they can be subject to violating Criminal Code of Canada.
Consider putting them on NOTICE for charges they will be facing for your time, costs and dealing with credit reporting etc.

All the best.
Maestro

Also, the balance issue is definitely going to come into play here.

IF you were served back then and could have defended the action, you would certainly defend that the balance was incorrect (this is just the smart thing to do always). Then the creditor has to prove their claim amount, interest and that their was an agreement between you and them.

This is why they would want the default judgment without any hassle because if you defend the action they need to find the original loan application and/or the loan agreement you signed. Something proving their is an agreement in place. They also have to provide statements showing the balance they sued you for is correct.

Many times when the defense comes up and the creditor has to prove their claim the balance gets amended because they actually put the wrong amount that is owed.

Creditors do this all the time. They don't always want the person served, so you need to find out how they wrote out their documents from 07 show you were served (or sub-served). Then you can file the motion to set aside the jmt and swear an affidavit as to how you were never served. The bailiff had to tell the courts something regarding you being served previous to this going to judgment. In superior court it's just an affidavit saying 'I served so and so on this day,' or 'I served the mother of the defendant on this day' etc.

Sometimes the bailiff will just leave the statement of claim with whoever answers the door at the persons house (or previous house). Or even just leave it taped to the door.

This is where you really need the lawyer though, they can tell you the best way to write it out and swear the affidavit for you to submit to the courts.

If you throw the judgment out, and it's from March 07, then they've past the statute of limitations. But it could have reset if you've made any payments voluntarily.

Small Claims Court.

I never even knew I had a court date. Never received papers in the mail. The court system freaks my out, and I've had issues with parking and insurance tickets in the past, so I always make sure to appear. If I had known about the court date I would definitely have gone to save the embaressment of my work finding out. I know for a fact that I wasn't living at my house Jan 07, because I moved out for personal reasons. I ended up coming back home in late March after a miscarriage. No idea how to prove I wasn't served, other than hospital papers I've kept from that date showing a different address.

I WOULD work out payments with the creditor, if the amount they were asking was reasonable, but please, over $3700 than what they're reporting on my credit?! I refuse to based off that. I'd rather take them to court and see what happens.

Yeah, I know I can change jobs, and it would re-start everything, but that would suck for me so no can do. I like my job too.

I guess I'll have to see what happens. I'm probably going to go to court and see about filing a Notice of Motion.. will keep you updated.

Thanks again for all the info!

There are so many variables in something like this. You really need to contact a lawyer.

Is it superior or small claims?

Your notice of motion will be to set aside the judgment I assume, but what will be your reason for this? Did they not serve you properly? This is the most common reason a judgment can be thrown out but you have to provide proof that you were not served.

There's also the possibility of arranging payments with the creditor if you agree that you owe the debt but cannot afford the garnishee ordered amount.

There is also the possibility you could change jobs and stop a garnishee of wages.

Lot's of options, it really depends what your situation is and how this all came about.

Just looked at the papers.. shows post AND pre judgement interest set at 24.9%!!

You sound like you know what you're talking about so hopefully you can answer this for me.. I've been reading various sites about a Notion of Motion, where I can request a default judgement to be set aside..Have you heard of this?

Since I've already been served a Notice of Garnishment (I've already requested a Garnishment Hearing to dispute the Garnishment, but not sure how much luck will be on my side), is it possible for me to request a Notion of Motion instead? From the way it sounds and how the papers read, I would have a better chance at delaying my judgement that was defaulted, as opposed to going to the Hearing and the judge either reducing the amount and me still having to be Garnished.

http://www.attorneygeneral.jus.gov.on.ca/english/courts/3rd_Quarter_2010_CJA_Pre_Postjudgment_Interest_EN.pdf

It's possible the judgment has an assigned interest rate higher than the court ordered interest rate (I guess). But in most provinces (I know BC/AB judgments better than ON) the judgment ALWAYS goes by the post judgment interest rate that ALL judgments are calculated by.

At the very least there should be a way to get rid of the interest. Does the actual judgment says 'post judgment interest rate set at 25%" ???