Collection Agencies - Please Help - Canada

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RE: Please Help

Postby angella » Thu Feb 07, 2008 12:20:56 PM

deleted as it's not available in ONtario.
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RE: Please Help

Postby quinners » Thu Feb 07, 2008 10:08:48 AM

I feel as though I've fallen into Miltons version of hell...(re: Ash Wednesdays Messages).

I one foul swoop( and with the demise of the film business in TO) I've gone from having a steller credit rating (responsible mum, homeowner, active in her community) To being treated as though I'm the worst form of scum. Nice job collection agencies do! Asking me to take a loan presumes that I then have the money to ensure monthly payments. Is this me or is this faulty logic? It also presumes that my bank will now even entertain the thought of giving me a loan.

I called CIBC this morning after a horrific and somewhat traumatizing call threatening myself, my home my name. Anyway, long and short, CIBC will stop all calls from the collection agency. They've agreed to take a lump sum payment and when that appears on their records they will then come back to the table so to speak and figure out another avenue of payment. So that's one down and one to go. I have to collect on one outstanding contractand monies owed to me (once I make sure that I'm ok for a few months with bills, property taxes et.al,...following Angella and Ranzzz advice on making sure of survival) I'll hopefully make the same deal with Capt.One.

I'm not sure if Monty reads all these posts...not sure if there are enough hours in the day. But I'd like to say a major thank you to him for operating such an amazing site; and to Angella and Ranzzz who truly stepped up to the plate and offered a) words of comfort and b) letting me know that I can get proactive I can pull myself out of this. (sorry starting to sound like a cliche from the academy awards). Anyway, thanks again ,,,,much appreciated. I've just quit smoking and even through all of this I've managed to abstain. I'll continue to visit this site now and in the future. When this incident is a bad dream from the past...I'll have to work quickly to see what I can do to repair the damage done. I'm helping one kid through university and another two who'll be needing help in the very very near future. I need a good rating.
Quinners
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RE: Please Help

Postby cadude » Wed Feb 06, 2008 04:57:06 PM

I wouldn't worry about your creditors suing you. I'm positive CIBC won't take the legal path, Cap1 not so much, but I wouldn't stress over it.
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RE: Please Help

Postby angella » Tue Feb 05, 2008 02:58:56 PM

If it were me, and if there is a possibility of a lawsuit (and with that much money there may be) I would be more likely to consider a bankruptcy trustee or bankruptcy lawyer... not to declare bankruptcy, but because they know more about your legal options. If I remember correctly from schoo, one of them is a court ordered "orderly payment of debts", which should cover your butt from any untimely lawsuits and brings all your creditors under one lump sum payment.

A credit counsellor can only negotiate for you... and only if the creditors are willing to work with them. That's something you can do for yourself when you're ready to.

No, with financial situation as precarious as it is, I would not likely offer them the settlement at this point... not unless it's a "paid in full" situation. What happens if something does go wrong that you need the money for? Your credit is shot. Your budget is groaning. How do you come up with the extra funds? Plus, if there's still interest accruing on 2500... and you find you can't afford the extra payments... soon you're right back where you started.

At most, I would contact the creditors and ask if they have a financial hardship program where interest is reduced or suspended and payments reduced - and only if you can afford the payments. In order to find out if this is an option, you will probably have to speak to a supervisor... and be super sugary sweet. And, yes, this will have to be with the original creditor as the collection agencies can't (and wouldn't if they could) offer that to you.
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RE: Please Help

Postby FociPhil » Tue Feb 05, 2008 02:11:20 PM

I saw this on the news a few weeks back. This may help some, for the Ontario residents at least...rules on the collection practice.

http://www.citynews.ca/news/news_2835.aspx

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RE: Please Help

Postby quinners » Tue Feb 05, 2008 01:37:38 PM

Hi Angella,

First thanks for you response,,,much appreicated. I am working but it's for myself and whilst I do manage to keep us afloat...it's slow right now although I'm confident it will pick up.

I have read the act so I know what they can and cannnot do to me (nothing).

So just to reiterate with your timely response: Even if I have 5000.00 that I can manage without...and I'm confident that I'll be ok, you feel that I should not contact Visa and offer them this amount. I know what you're saying re: my credit is now the (edited for language) (that's a nasty pill to swallow, but I'll deal with that when I get this mess under control)

With respect to credit counsellors, I did contact one but never having dealth with this before I wasn't sure what to ask outside of the obvious. They add 15 percent on to each payment and they want a one time lump sum of 25.00.

So I guess my question re; counsellors is...are they worth it? Can they indeed do what they claim...reduce the amount, stop the interest and put me on a schedule that I can handle. If I hold back the 5000.00 rrsp money and use it to pay both at an affordable schedule is this smart? I'd like to put an end to this asap...I spent that money and I'm responsible for it.

Finally, if I were to choose the court route (not sure how that works) how long would this all take...I'm really trying to keep my life going in a positive direction...or at least I was until I hit the roadblock. Anyway that's why I'm asking all these questions...because I rreally want to do something about this...not sit back and avoid this mess.

Thanks again for your response...much appreciated

I'll check back again later today (Feb 5 2008) later tonight
Quinn
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RE: Please Help

Postby angella » Tue Feb 05, 2008 11:10:57 AM

First: Survival comes first. Pay the mortgage/rent, utilities, food. Then worry about transportation and secured debt. Whether the credit card companies like it or not, they are unsecured debt, unnecessary for daily survival, and will just have to wait. Take care of you and your family first. Do not pay the debt at risk of becoming homeless.

Second: Any damage to your credit rating is done. There is nothing you can do at this point to fix it and there is now no hurry to pay it. Again... a warm place to live and food is most important and should be the only thing you think about. There is no logical reason to risk homelessness simply to satisfy a collector. Educate yourself as to collections legislation and keep the agencies within those guidelines. Do not allow them to harass, intimidate, or abuse you.

Third: Do not call your creditors to settle or make payments until you're actually in a position to follow through. That will simply make a bad situation worse and risk that, when you are finally financially able to do so, they will not work with you.

Fourth: Even if they do take you to court, the court will be far more lenient with you based on your financial circumstances than any collector - and the collection calls, once you have a judgement and terms, will stop. If you keep records of harassment and violations you may even be able to go after the agency yourself if necessary.

Fifth: If you haven't already done so, you should consider picking up a part time job to at least hold the wolves to the curb rather than having them howling and scratching at the door.

Sixth: Collection agencies have been known to make threats directly to children. Make sure that, not only you know your rights and the limitations on collection agencies... but that your children are aware of them as well so they cannot be scared or intimidated.

Finally: Try not to stress about it. Try not to let it get you down. Live your life. Hang up the phone on collectors and/or give them an agent/paralegal/lawyer/credit counsellor of some sort to contact so you are not receiving the calls yourself if that's what you need to do. In fact, you may even want to contact a credit counsellor or lawyer to help you manage this and find some legal means of ending it through orderly payment of debts order, etc.
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RE: Please Help

Postby quinners » Tue Feb 05, 2008 10:49:40 AM

two credit cards that I've managed to shamefully fall behind on. One is visa(cibc) and one mastercard(capital one). They've stopped calling since I got made last week and told them that part of the collection agency act (section E?) that they couldn't call 15 times a day. In fact they havent' called at all. I don't know whether to call both credit card companies and beg them to stop the interest and I'll give one lump sum now and break down the remaining load. I have to do something and that's about all I can think of...I don't have time or the energy to play games.

Thanks

Quinn
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RE: Please Help

Postby cadude » Fri Feb 01, 2008 05:42:53 PM

Who is your creditor(s)?
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RE: Please Help

Postby quinners » Fri Feb 01, 2008 05:51:23 AM

Neither debt is that old: both are from 2007. Allied International Collection agency is one and the other is Collectcorp Inc. Allied doesn't seem to be as bad as Collectcorp, which calls both numbers upwards of 10 times a day. I cannot pay both debts in full I don't have that kind of money. They have all kinds of info on my bank accounts (which I find both scarey and disturbing) and they know I have a line of credit and how much is available. I cannot use the line of credit because what is left in that account has already been slated for taxes. Allied sent me a letter with what appears to be a property search paper. I know it's not official since there is no PIN number on it. I think this is a scare tactic so I"m not that worried about that issue.

Both are third party...again not sure what that means other than they've been hired by the creditors to get their money back (I think). As to whether they are licensed to operate I do not know.

As mentioned Collectcorp are the most devious nasty ones...they called and said ok we'll make you a deal you can pay 8000.00 and we'll clear the debt. The someone else called because I hung up on the first guy, and offered me .80 cents on the dollar, which would bring it down to approximately 7500.00. This is the one that I can afford to pay...but only to the tune of about 5000.00. and I'm unsure as to how to go about trying to see if they'll lower the sum to this figure.

We're both stressed to the hilt, no work in sight and we're both doing odd jobs here and there to try to keep it together...and we are but just barely.

So any advice would be immensly appreciated.
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