Yes, as you can see, in Quebec too, collection agencies have to notify you by letter identifying the details of their assignment, before phone contact. However, if it's like Ontario or this website, no one pays much attention to the rules.

http://www.qcbankruptcy.ca/credit-bureaus-collection-agencies.html

Sorry about the previous post. I'm not sure at what point you read it. It seems ok now, but it went haywire during a couple of edit attempts.

Equifax deliberately defines the "date of last activity" in an ambiguous manner on their consumer disclosure sheet to please their high paying creditor and collection agency members. It can refer to when the debt was transferred to a collection agency, sold to a debt buyer, the date of last payment, or several other assorted things.

Regardless, their policy is to retain negative information only for 6 years from the ORIGINAL date of default. That means if you make a payment on it today, the negative reporting period won't extended until 2018. TransUnion has the same policy. It's the date the last payment was made before the debt first went into default which is important. If it's been more than 3 years, then it's over the limitation (or prescription period, as they say in Quebec) for legal action. That would take a lot of worry away and enhance your bargaining position if you wish to settle.

However, I've seen banks refuse to entertain offers of less than 80% on old stats barred debts as a matter of internal policy. Word of low settlement ratios would leak to and jeopardize the collection of other accounts. It all depends on what they have instructed the collection agency to accept. But, once again, don't think that because you are dealing with a major bank, their collectors won't use illegal/low ball tactics to collect. Make sure you have a signed settlement offer in hand before sending any money.

As long as the account is assigned to the collection agency, the bank's internal collection department won't deal with you as they are still under contract to the agency.

Another difficulty is proving when the date of default occurred. You don't want the item to stay on there any longer than necessary. That's why I stressed the importance of keeping your old statements. They're all you have if filing a defence.

In the common law provinces, collection agencies are required to send a letter of assignment before attemting to collect on the debt. Unfortuanately, this is something they are generally slack on as it's not widely enforced. In contrast, debt buyers tend to provide them automatically since it's to their advantage. I believe the situation is the the same in Quebec; I wiil check this evening.

The only advantage to repayment as far as your credit report goes is that the debt will be shown as settled. Although the credit score won't be much higher, anyone looking at your report for employment purposes won't think you skipped out on a loan. They'll almost certaintly surmize you fell on hard times and paid it off when you could. You might therefore be viewed in a significantly different light. There's also the more important aspect of the moral obligation to settle when and if you are able.

Thanks for the reply Daniel.

I am employed and have full intentions of settling this debt. I just want to go about it in a manner that would offer me the best possible outcome.

The last payment I actually made on this account was back in 2008/2009 I believe. I can't understand why the DOLA is 2010. I think that's when it was assigned to a CA.

Do you know if there is any way I can find out if the CA bought the debt or if the bank just hired them to collect? The entry in my credit report is not in the 'Collection' section, does this mean the bank still owns it?

Since the damage is already done on my credit report, there is no advantage for me to pay the amount in full? If I understand correctly, no matter how I settle this(whether settlement or full payment), I'm stuck with this R9 until 2016?

Either way, I will definitely ask for something in writing from the CA or bank before handing over any money.

Would I have a better chance settling this directly with the bank?

Thanks again for you help.

If the date of last activity on the account was, in fact, June of 2010, they still could start legal action. Nonetheless, given the modest amount, the fact you're unemployed, and that they haven't done so yet means they likely won't. When they find out you have a job, to which wages could be atttached, that could change.

Anyhow, the CCP (Code of Civil Procedures) gives them 3 years from the default date to start legal action - unless you subsequently make a payment or provide a signed acknowledgement of the debt. So check to ensure that June, 2010 was the date of your last payment. Equifax simply lists whatever date the collection agency tells them to put down. Often, agencies manipulate dates as an enforcement tactic. Saving old account statements and correspondence from the creditor as the account goes into arrears is often critical for proving when the default date occurred. If you still have them, put them in a safe place.

No matter, whether you settle or not, the delinquent item will be on you Equifax and TransUnion credit reports for 6 years from the date of original default (or 7 years from the judgment date if they successfully sue you, in Quebec.) However, it will be marked as "settled" as opposed to being outstanding.

Because little further damage to your credit score can be done that hasn't already occurred over this debt, I would start by offering 35% of the current balance. I have no idea what they'll take, but often 50% can be obtained with little effort, Given the age of the debt and your financial situation, they may be amenable to less.

But keep in mind, the collection agency will likely try to trick you into agreeing to a settlement amount over the phone and then demanding further amounts later. If you had sent them the $2000 earlier on, you probably would have gotten stiff demands for remainder with more interest soon after.

Only negotiate over the telephone; if you mail a written setttlement offer, you'll likely needlessly renew the limitation period. Instead, bargain over the phone; then get them to send a written settlement offer (signed by a manager) indicating the offer is in full and final settlement of the account. Do this also if the agreement involves monthly payments, and demand no further interest accumulation.

Pay for Delete is illegal, and your chances of obtaining it with any collection agency is about zero. Not that the agencies have any morals, but they'd be terrified of losing their licence.

See the link below for TransUnion's and Equifax's reporting periods in Quebec.

http://www.fcac-acfc.gc.ca/eng/resources/publications/budgetMoneyMgmt/CreditReportScore/UndersCreditScore-eng.asp

Hello,

I have been getting calls from a CA recently about an old credit card that I never paid off. Here is a copy of the debt as it shows up in my Equifax report:

Phone Number: High Credit/Credit Limit: 000000006500
Account Number: XXX...XXX Payment Amount: $104.00
Association to Account: Individual Balance: $3,414.00
Type of Account: Revolving Past Due: Not Available
Date Opened: 1999-03 Date of Last Activity: 2010-06
Status: Bad debt, collection account or unable to locate Date Reported: 2010-11
Months Reviewed:

Payment History: No payment 30 days late
No payment 60 days late
No payment 90 days late
Prior Paying History: At least 120 days past due ( 2010-10 ) Three or more payments past due ( 2010-09 ) Three or more payments past due ( 2007-08 )
Comments: Acct assigned to third party for collection
Monthly payments

I do have intentions of settling this debt because I actually had a job offer revoked because of this entry on my credit report.

The CA said I must pay the balance in full, whereas in the past(in August) they had offered me a settlement of $2000.

They stated that they don't own the debt, and that it still belongs to the bank. Is there any way to verify this?

What is the best way of going about settling this account? My intention is to improve my credit score and not have this debt affect my ability to get a mortgage or a job in the near future. More and more employers are doing credit inquiries now.

Is 'Pay for Delete' an option in Canada?
Any difference in paying a settlement vs paying in full?

I am located in the province of Quebec, in case that is relevant.

I appreciate your help and insight.

Thank You