This term relates to participating whole life insurance and the use of the dividend to reduce or completely eliminate the need for future premiums. In the 1980's life insurance company's profits from investment were exceedingly high compared to historical experience. It became common for a salesperson to show new prospective clients how quickly his or her insurance company's dividends would cover the future cost of future premiums. In some cases more emphasis was put on the value of future dividends than on the fact that future dividends were not guaranteed and could only be projected based on current earnings. Many life insurance buyers have since learned that the dividends they expected in the 80's no longer exist in the 90's and they are continuing to dig into their pockets to pay insurance premiums.

Thanks for the insight. If I find out anything I'll post it here as it may prove useful to others.

This could have happened for one of several reasons.

1) debts automatically purge from a credit report 6 years from date of last activity (ie. last pmt)
2) the debtor OR the registrar may have had doubts that the report was actually yours
3) the debtor may have passed it on to another collection company, sometimes when they do this they will remove it from your report and it will be the new collection agencies responsibility to re-post the debt to your bureau.

Jeff Aikman, Mortgage Agent (Ontario)
Dominion Lending Centres Mortgage Plus
647-216-2654
jaikman@dominionlending.ca
[url]www.jeffreyaikman.ca[/url]

I realize this. I never meant to assert that filing a complaint somehow causes a debt to vanish, only that it was a curios coincidence that I heard had happened before. I also don't see how the creditor or the amount owing is relevant, and yes I had planned on viewing my credit reports. I thought that perhaps the complaint and the resulting decision by the Registrar had resulted in some action which caused the debt to somehow be voided. If anyone has had any experience with this process and knows what usually happens following a complaint I would appreciate some insight. Thanks.

Debts don't just vanish after filing a complaint with the Registrar of Collection Agencies. You did not mention who is the creditor and the amount of the outstanding debt. Also, when was the last time you pulled a credit report from both Equifax and TransUnion? Before proceeding any further, pull these two reports and see if this debt is shown and the applicable comments. This will give you a better picture of what's happening.

At the time it had been in default approximately 8 months. The SOL expires in Feb. 11. But like I said not a word since October 09 when the complaint was sent. If it went back to the creditor why have I not heard from another collector since then?

The debt probably went back to the creditor. How old is the debt?

About a year ago I registered a complaint with The Registrar of Collection Agencies regarding the conduct of a certain collector. It's been over a year since I sent the complaint and so far I've heard nothing about the debt. No calls, no letters, nothing. It's like the debt just vanished. I've heard this sometimes happens to debts after registering a complaint. Does anyone know how or why this happens?