Collection Agencies - Question about post-judgement interest rates - Canada

a good place to talk about links

RE: Question about post-judgement interest rates

Postby footloose » Sun Jan 08, 2012 10:18:34 PM

Your question is very clear but the answer that you are seeking is too involved for this forum. Also, I fail to see the relevance of the question unless you are simply just curious. If the answer to your question is extremely important to you, I suggest that you consult and research the respective Acts, Statutes and Regulations of the remaining 8 Provinces and 3 Territories. That way, you will know for sure, while at the same time, you will have answered your own question.

----------------------------------------------------------------------------------------------------------
Educating one Consumer at a time
footloose
Member
Posts: 654
Joined: Mon May 31, 2010 07:12:21 PM
Province: ON


RE: Question about post-judgement interest rates

Postby Claude66 » Sun Jan 08, 2012 07:25:27 AM

Thanks everyone but none of the posts really answer my question. Let me try to clarify it.

When a judgment is awarded in Ontario the post judgment interest rate in effect at the time of the award is the rate used to calculate interest for the entire life of the judgment. Even though the rate changes quarterly, it doesn't change the rate you use to calculate interest 2 or 3 years later. Let's call this a "constant" rate.

When a judgment is awarded in British Columbia the rate used for calculation changes every six months and the NEW rate is used for calculation. In other words, interest must be calculated using the NEW rate for each six month period. You might calculate interest at say 8% during one six month period and at 7% during the next period. Let's call this a "changing" rate.

I understand the methods of calculation for Ontario and BC. My question concerns the other provinces and territories. Which are constant and which are changing?
Claude66
Member
Posts: 2
Joined: Sat Jan 07, 2012 10:04:11 AM
Province: ON


RE: Question about post-judgement interest rates

Postby Claude66 » Sat Jan 07, 2012 10:12:22 AM

I realize this is an older thread but I have a question on calculating post-judgment interest. It is my understanding that the rate in effect at the time of the judgment is used to calculate interest throughout the life of the judgment in Ontario, while a different rate is used each year in British Columbia. What is the procedure in Manitoba and the other provinces and territories? Can anyone help?
Claude66
Member
Posts: 2
Joined: Sat Jan 07, 2012 10:04:11 AM
Province: ON


RE: Question about post-judgement interest rates

Postby HailleyB » Wed Sep 14, 2011 12:59:14 AM

We cannot all be good with numbers. Many of us have been vexed by the complexity of those essential abstractions since school days. And still, as adults we need to develop specific math skills to be able to make good financial judgments. We have to know the difference between simple and compound interest, and how to compute each. Those planning to invest likewise need to know how to compute dividends. Below are some easy steps to travel through the labyrinth of figures. We humbly offer this information in a desire to help the mathematically impaired. [url http://personalmoneynetwork.com/moneyblog/2011/09/12/calculating-interest/]Calculating interest and dividends for mathematically challenged.[/url] Almost all of us are not good at numbers, some would repeat reading and computing those numbers to get the right answer. The ability to calculate interest is a vital part of understanding how well you are managing your finances.Not only is interest likely a major player in whatever debt you may owe, but it can also be a key factor in making your money grow.
HailleyB
Member
Posts: 1
Joined: Wed Sep 14, 2011 12:48:07 AM
Province: NT


RE: Question about post-judgement interest rates

Postby average_joe » Wed Mar 09, 2011 11:38:16 AM

The judge awarded RBC Visa a post-judgment $1.33 per diem on my $10,000 debt.
average_joe
Member
Posts: 2565
Joined: Sun Dec 16, 2007 03:58:17 PM
Province: NS


RE: Question about post-judgement interest rates

Postby footloose » Wed Mar 09, 2011 10:20:33 AM

Post-judgment interest starts to run on the total judgment amount from the date of the judgment. The “total judgment amount” is the money award plus pre-judgment interest plus costs. This is authorized by Subsection 129(1) of the “Courts of Justice Act”.

If there is a contractual interest rate, you will calculate post-judgment interest using that rate. For example, if the defaulted account was a credit card and on the day of default, the credit card carried an APR ( annual percentage rate ) of 25.99%, then this is the interest rate that will be charged in calculating post-judgment interest. If you read your “Cardholder's Agreement”, this is normally stated in one of the Clauses.

If there is no agreement setting out the rate of interest that applies in the event of a default, then pre-and post-judgment interest rates must be determined in accordance with Sections 127 to 130 of the “Courts of Justice Act” using the rates published pursuant to Ontario Regulation 339/07. Current tables of post-judgment and pre-judgment interest rates can be found at the following website

http://www.attorneygeneral.jus.gov.on.ca/english/courts/interestrates.asp

When calculating the interest under the “Courts of Justice Act”, you must read the applicable sections carefully. Subsection 129(1) states that money owing under an order, including costs to be assessed or costs fixed by the court, bears interest at the post-judgment interest rate, calculated from the date of the order. In other words, Subsection 129(1) gives you the “time period” for calculating post-judgment interest.

However, if you want to know the “rate of interest” you must go to the definition of post-judgment interest in Subsection 127(1). The Subsection 127(1) definition states that the interest rate for post-judgment interest under the “Courts of Justice Act” is the bank rate at the end of the first day of the last month of the quarter preceding the quarter in which the date of the order falls.

A quarter is a three-month period. There are four quarters in any year.

First quarter: January, February, March

Second quarter: April, May, June

Third quarter: July August, September

Fourth quarter: October, November, December

If the order for payment of money is made in September, during the third quarter of the year, then the applicable post-judgment interest rate under the “Courts of Justice Act” is the interest rate for the preceding quarter-----that is, the second quarter of that year. If the order for the payment of money is made in February, during the first quarter of the year, then the applicable post-judgment interest rate under the “Courts of Justice Act” is the interest rate for the fourth, or last quarter, of the preceding year.

Under the Ontario “Collection Agencies Act”, Regulation 74, deals with your problem of contact by a collection agency. Pursuant to Subsection 22(3), it says

“No collection agency or collector shall contact or attempt to contact the debtor's spouse, a member of the debtor's family or household, or a relative, neighbour, friend or acquaintance of the debtor”.

Pursuant to Subsection 22(6), it says

“No collection agency or collector shall contact the person more than 3 times in a seven-day period on behalf of the same creditor”

Pursuant to Subparagraph 22(4)(d)(ii), it says

“No collection agency or collector shall contact or attempt to contact the debtor's employer unless the contact is in respect of payments pursuant to an order or judgment made by a court in favour of the collection agency or collector or a creditor who is a client of the collection agency or collector”.

In summary, the collection agency or collector is not permitted to contact anyone about this debt owing other than the debtor unless the debtor gives written authorization to the collection agency or collector to do so. Also, the collection agency or collector cannot contact you more than 3 times in a 7 day period. If this continues to occur, send a registered letter to the Chief Privacy Officer of the respective collection agency making specific reference to the Collection Agencies Act, Regulation 74 and more specifically to the Subsections to which I quoted.

In reference to a court order or a judgment to which I made reference to in Subparagraph, 22(4)(d)(ii), the Act is silent as to the number of times a collection agency or collector can contact you at your place of employment. This subparagraph only applies to a court order or judgment, and not to a matter that has not gone to trial.

In the event that the creditor proceeds to obtain a garnishment order, and when the garnishment order is issued by the clerk of the Small Claims Court, the creditor will serve a copy of the Notice of Garnishment and affidavit for enforcement request on the debtor within 5 days of serving the Notice of Garnishment on the garnishee ( your employer ). This will be done by mail, by courier or by personal service.

------------------------------------------------------------------------------------
Educating one Consumer at a time
footloose
Member
Posts: 654
Joined: Mon May 31, 2010 07:12:21 PM
Province: ON


Question about post-judgement interest rates

Postby losingmymind » Mon Mar 07, 2011 07:45:24 PM

CRS has a SC judgment for $4500 against me from August 2009 which they are trying to collect. I had received court paperwork from them a few years ago but thought it was a ploy since it was all hand written, no court stamps or anything official looking so didn't pay attention to it at the time. Thought that anything official from a court would come via registered mail. Wrong...

Anyhow, this is the only debt I have and would like to clear it up. I have told them repeatedly that I would like to settle this account but am not able to pay it all in full. I asked if they would accept a reduced amount and for them to send me a settlement offer. They sent me a letter saying that the debt was now up to $6500 and that they would accept a one time settlement of payment in full of $5500. The letter states the SC case # and it says that the post-judgment interest rate is 25.99% and also says the daily amount accumulating in interest is $4.15 for every day it is unpaid. My husband and I have been doing some reading around this forum and are confused about what interest rate they can charge me. Can they really charge the 25.99%? I don't understand how the post-judgement rate thing works. Is there anybody who can explain it?

On another note, this company calls my home and office between 5 and 7 times per day - sometimes leaving messages, sometimes not. I have asked them to stop calling my work but they have refused saying it is the only way to reach me. Even though the debt is in my name alone, they talk to my husband about it if he answers when they call. Can they do that?? They are threatening to move to garnish my wages if I don't come up with payment in full or a payment plan in the next 48 hours. If they do go to the court to ask to enforce the garnishment, would I get notice from the court?

Thanks in advance for any advice.
JP
losingmymind
Member
Posts: 1
Joined: Mon Mar 07, 2011 07:23:50 PM
Province: ON


,

Return to Collection Agencies - Discussion Area