Debt Collection Issues (1 Viewer)

[Shawn Solar]

No it not me but a relative. Apparently its a 13yr debt that has just resurfaced. I am just wondering what they should do next.

The debt is from a car loan that became unpaid in 1993. Since then it has been in collector's hands. The thing is through the yrs attempts to pay have been made although there were also times where money was unavailable. The debt has been handed to about 5 or more agencies over the years and the person was even contacted by two to three agencies at once back in 1994, which confused them as to where the money was payable to. then they all disapeared. In the last 5yrs the person has not been contacted until now. It did not even show up as owing last year on a credit check. Which made this person to believe it was non withstanding. The original debt was $1500 which is now around $8000. The company that is now holding the debt has held the account for a yr without contacting this person and now demands FULL $8000.

I know its a little complicated but anyone have any advice? Canadian laws may differ but anyone with any advice is appreciated. Can the amount be reduced? thanks guys

 

[DonRoeber]

Contact a lawyer.

 

[Prentice Cotham]

Hopefully there will be some Canadians who know the law up there who can post. If it was US, you would probably be beyond the statute of limitations and there would be nothing they could do. There are plenty of credit forums out there and there is bound to be someone familiar with Canada.

 

[SethH]

As you mentioned, laws are likely different in Canada. They also differ from state to state in the US. But, in many states the statute of limitations is 7 years, in which case a simple letter telling them that they are beyond the statute and not to bother any more should legally end things. But I may be misunderstanding the law and the law is likely different there.

Also, the statute of limitations likely begins from the date of the most recent payment on the debt. So if any money was exchanged more recently than '93, that date would begin the statute of limitations. I actually found a table that lists the statutes of limitations for every state in the US and the longest amount of time on there was 10 years, so I'd say there's a good chance that your relative will be outside the statute of limitations.

 

[SethH]

Another note: I've read than even confirming that the debt exists can re-start the statute of limitations date. So, if your relative has even ackowledged the debt to a collection agency he/she may be out of luck.

 

[Shawn Solar]

Hmm SethH you may be right. They have acknowledged the debt and thats the thing. They want to pay it, just not 8000 dollars. The principal was $1500 so I gather somewhere near that would be acceptable. The party that the debt is withstanding to won't have anything to do with the debt once its in the hand of a credit agency. They have been contacted in the past and refused payment from my understanding stating that the debt had to be pay through the collection agency. I have gave my relative some contact info and hopefully they'll contact a lawyer or advisor.