Sandrasue7, thanks for the update. Glad to hear that it didn't go to collections.

I agree, it may be that he increased the amount either to get more interest from collections agencies or he can write more off as bad debt.

Either way, I just found it strange because it's clear that he didn't respond to any entities.

I'll post an update once l found out in the next couple of weeks if he's bluffing or not on the collections threat.

Williamcoffee thanks for the link.

Slansky: Since this accountant threatened to send me a "letter of intent" in November and then in December to hire a collection agency, I haven't heard from him anymore. So far, no collection agency contacted me. My guess would be that Footloose was right when he said that

a) this might just be an intimidation technique
b) the amount of money ($ 180) would be too small for any collection agency to be interested in
I am wondering, if your accountant increased the amount from $ 500 to $ 800 because he knew that otherwise a collection agency may not be interested? May be someone else can answer this question.

This would mean that he really intends to get his money. On the other hand, he may have difficulties to proofe that you owe him $ 800
Also, the fact that he refused to talk to the BBB may not shed a good light on him, in case you want to take him to court.

I wish you good luck and let us know how things are going.

Hello, thank you everyone for providing such informative posts.

Sandrasue7, do you have any updates since the last time you posted?

I'm in a similar situation where I'm in a 'Mexican standoff' with an accountant.

In Nov 2010, I met with an accountant once to go over some information about capital gains taxes. We talked a few more times by phone, which didn't last more than 5 minutes. I decided not to deal with this accountant anymore as I didn't have a good feeling about him and he never fully answered any of my questions. In the end, he invoiced me $300 ( plus hst) for the initial meeting (30 mins) and a couple of phone calls.

When I questioned the charges with him, he became very arrogant and said I have no choice but to pay. That was the last time I spoke with him.

Since then, I have contacted the following governing entities to file a complaint about this accountant hoping they can help,

1) Ministry of Consumer Services. They couldn't help as professionals such as accountants, doctors, etc have their own regulating bodies. They suggested I contact the Certified Management Accountants of Ontario

2) BBB - Made several attempts to contact the business regarding the above referenced complaint but didn't get any response back so they couldn't assist further. The only thing the BBB can do is mark the business as 'F" for the company's failure to promptly give attention to the matter which will be reflected in the report given to consumers about them.

3) CMA - I contacted the regulatory affairs department and will be filing a formal complaint against this accountment but as DanielBI said, this may be a waste of time as I need to prove misconduct on his part.

This week, I received a final invoice. To my surpise, there's an additional item - $500 for responding to various entities. What response?? He didn't even talk to anyone from the BBB or Ministry of Consumer Services.

So now the total is over $800 + hst. He also indicated that if I don't pay by Feb 3, it will be sent to collections.

My questions are,

1) If he only has my name, phone # and address, can he still forward this debt to an collection agency?

2) If it goes to collections and I fully intend to go to court, what are my chances of settling this in the pretrial meeting? If I lose, do I also have to paid for any expenses incurred by the accountant, ie lawyers fees.

3) As for the additonal $500 added to the final invoice, did the accountant do this so he can write more off as bad debt?

Sorry for the long post but any advice would be appreciated,

Thank you

If you live in Ontario ther are some impotant ino you should know.

Go to this link. they can help you. Plus you can always call the ministry.

http://www.sse.gov.on.ca/mcs/en/Pages/Personal_Finance_Collection_Agencies.aspx

Thank you DanielBI for your response!
The whole story has become much more clear now. I'm glad I found this website.

It's 2 years from when the debt went into default or the creditor "OUGHT to have known" that it was defaulted on. Practically, that could be anywhere from 1 to 90 days afer the original invoice was due. As well, the creditor would need to send it out in a timely manner, not 7 months late.

They have 2 years to file a claim from that date. In Canada, unlike in some US States, creditors can still file a claim after that date with the onus being on the defendant to present the limitation period for action as a defence against the plaintiff's claim.

Read Sections 4, 5 [Discovery periods], of the link below if you want the exact wording

http://www.e-laws.gov.on.ca/html/statutes/english/elaws_statutes_02l24_e.htm

In Ontario, the courts (are supposed to anyway) use a reverse onus stance. The creditor must show the claim was filed within 2 years of the default. The judge should examine the supporting documentation of the claim and dismiss it if the filing date exceeds 2 years from the default date.

But a defendant would be wise (with outfits like Natale Law Offices around) to make sure they file a defence and show up for any pretrial settlement hearing or actual trial so as to not risk having to file a motion to set aside a default judgment from potential courtroom laxity on the part of the presiding justice. It does happen.

But I wouldn't worry for 5 seconds about any of that in a case like this.
Even if it went to trial (which it won't), just tell the judge you don't have any money, and ask the judge or 10 bucks a month. 20, if you're feeling generous. And it's not going on your credit report unless he hires a collection agency to go after it. But they won't even listen to him unless he's established a regular account with one. Very unlikely.

Complaining to the appropriate professional governing body, whether he's a CMA, CGA or CA is a waste of time. They don't like to involve themselves with petty disputes over minor invoiced fees. They're more interested in violations of their professional association standards.

In short, if you want to pay the bill and can, do so, otherwise forget about it or put it on the back burner.

Footloose, thank you very much for your answer!

There's one thing I am still wondering. Could it be that the 2 year period of the Statute of Limitations has passed already?
I read that it starts counting after the last payment of a bill.
However, I never made a payment. Could it be that in this case, the 2 year period starts counting from

--our last meeting in Nov. 2008? In this case, the 2 year periode would have passed ( wishful thinking :) ?)
--the date I received his first invoice in June 2009?
--something else??????

Overall I think that this accountant likes to use intimidation tactics. His behaviour isn't professional at all. I realized that at our 2nd meeting when his behaviour changed to arrogant and aggressiv. Eg.I asked him why he wanted to deal with certain things in a total different way (more time & money consuming) than he had explained to me at our first meeting.--- He just repeated himself and did not answer my question.
Then, he started to send me invoices but never contacted me by phone or email.
Now, that this tactic doesn't work, he treatens again.

The question is: "Can I deal with such people applying logical reasonning or are they simply unpredictable?
I was thinking about

a)threatening him to file a complaint with the BBB, the Can. Accountant Assosicatiton as well as the association we had our 1st meeting. However, I will only do so, if I have written the complaints before hand. The thing is, I don't know if he will play even more crazy if I start talking his language.
b) pay for these $ 180 and forget about the whole story.

The main problem I have with this is not the amount of money but that I think that someone should stand up and show such people that making false promises in order to get new clients doesn't work and that using intimidation tactics is certainly not the way to go.

The questions is: is it worth my time and energy?
Still, I would like to find out about the Statute of Limitations. Footloose, I really would appreciate it, if you could look into this.

Thanks a lot.

NataleBI What is Natale Law Offices?

You'll get the odd unbalanced guy who'll sue for that amount on emotion but this guy surely isn't a member of a credit bureau to report to in the first place. He could try to hire a collection agency on his behalf who do report to them, but they work for companies and financial institutions. Even Natale Law Offices wouldn't bother sending out a phoney Form 7a on this one.......would they? ....Nah..........No.......No way!...... Absolutley not! ............Natale?..........Hmmmm?

Thanks sandrasue7 for responding to my questions. The following is a summation of your present situation, what may happen in the future and how you should address it should certain events occur.

Currently, you and the accountant are in what is sometimes referred to as a "Mexican standoff". The accountant wants his money and you're not prepared to pay. At this point, the ball is in his court and he has to decide whether to pursue this bill or not. It seems to me that as a professional accountant pursuing an unpaid invoice of $180 of which he has not made any attempt to contact you by phone to discuss this matter is a collosial waste of his time. Most accountants and lawyers would not attempt to chase such a small amount through the courts. However, like anything else, there is always the exception. On his last invoice, he indicated that unless the bill was paid, the matter would be forwarded to a collection agency. This is simply an intimidation tactic used to apply pressure on you to pay the bill. In all likelihood, the accountant will write off the bill as a bad debt and carry on with business. However, strange things do happen and in the unlikely event that he does contact an agency to collect on this bill, here is what should happen. I say SHOULD HAPPEN because collection agencies do not always follow the law ( rules ) as laid down in the Ontario Collection Agencies Act.

Once a debt has been assigned to a collection agency to collect, the agency is bound by Sections 21 and 22 of the Collections Agencies Act.

21. (1) No collection agency or collector shall demand payment or

otherwise attempt to collect payment, of a debt from a debtor
unless the collection agency or collector has sent the debtor,
by ordinary mail, a private written notice setting out the

following information:

1. The name of the creditor to whom the debt is owed.

2. The balance owing on the debt.

3. The identity of the collection agency who is demanding
payment of the debt.

4. The authority of the collection agency or collector to demand
payment of the debt.

(2) No collection agency or collector shall make a telephone call to
or a personal call on the debtor before the sixth day after mailing
the written notice required by subsection (1).

(3) Subsection (1) does not require that the written notice be sent

before a written demand for payment but is satisfied if the
written demand for payment is contained in the written notice.

(4) If a debtor states to a collection agency or collector that the

debtor has not received the notice required by subsection (1),
the collection agency or collector shall send the notice to the
debtor at the address provided by the debtor, and no demand

for payment, or other attempt to collect payment of the debt
shall be made before the sixth day after the day the notice is
sent.

22. (1) If a debtor sends a collection agency or collector, by registered
mail, a letter stating that the debtor disputes the debt and

suggests that the matter be taken to court, the collection agency
or collector shall not thereafter contact or attempt to contact the
debtor, unless the debtor consents to or requests the contact.

In summary, what sections 21 and 22 are saying are that the collection agency or collector must first send you a written letter by ordinary mail detailing the information provided for in section 21 before any communication is made by phone. The phone contact cannot be less than 6 days after mailing this letter. If the collection agency or collector violate this rule, then pursuant to subsection (4), you have the right to demand that they provide this letter before further contact is made. In section 22, you have the right to dispute this debt by sending the collection agency or collector a letter by registered mail stating that you dispute this debt and suggest the matter be taken to court. The collection agency or collector is barred from further contact with you.

If you are subsequently sued ( i.e. receive a Statement of Claim ) please post on this website or send me a private message. I will explain what your options are.

Good Luck and have a GREAT DAY

Hi footloose

Thank you for your quick response!
No, there was no more communication after the 2nd meeting. So far, I did not react to his invoices (always the same amount). The invoices came in irregular intervals (not 1 for each month).
On his last invoice he wrote by hand that:
a) I should pay this invoice right now
b) next month (Nov.) he would be adding "the intent to....? (cannot read this word)
c) and the following month he would give it to a collection agency