Comments on: Dealing with Collection Agencies http://gailvazoxlade.com/blog/archives/323 Thu, 09 Feb 2012 02:58:08 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: girl with a debt collector issue http://gailvazoxlade.com/blog/archives/323/comment-page-1#comment-69157 girl with a debt collector issue Thu, 06 Oct 2011 06:09:57 +0000 http://gailvazoxlade.com/blog/?p=323#comment-69157 so i was wondering if anyone knows anything about Total Credit....i got a phone call from them saying i owe a certain amount to CIBC..i have not had a cibc account in like 6 years...they want me to pay this money to them but refuse to send me any paper work til after i pay??? fishy?? what do i do???? so i was wondering if anyone knows anything about Total Credit….i got a phone call from them saying i owe a certain amount to CIBC..i have not had a cibc account in like 6 years…they want me to pay this money to them but refuse to send me any paper work til after i pay??? fishy?? what do i do????

]]> By: Concerned http://gailvazoxlade.com/blog/archives/323/comment-page-1#comment-57567 Concerned Thu, 16 Dec 2010 01:45:30 +0000 http://gailvazoxlade.com/blog/?p=323#comment-57567 Jim McJimbo has 6 creditors of various types. Lets say a couple credit cards, a personal loan, a student loan, and two really over due utilities. He goes to get some financial advice and comes up with three options, consumer proposal, credit councelling, and of course bankruptsy. Now his debt-load is approximately $20,000. The interest is doing him in since he was cut to part time. Over several days investigation it turns out that bankruptsy is the safest option so he signs the paperwork. Now for the next two years he's essentially debt free as he's protected by the trustee, however the trustee informs him that his student loan of $4000 is not bankruptable so he should make arrangements with his bank to keep paying the loan as the bank holding the loan is except from the preferential treatment of creditors fault. Within 48 hours Jim goes to his bank to discuss the payment arrangement since the bank is not allowed to contact him (see earlier protection statement), only to find that the bank has closed his account and has automatically sent his loans to a collection agency without notifying him. He asks "What the hell is going on here? You don't want my money?" The bank teller gets the manager who says "You went bankrupt." Jim replies "A student loan is not bankruptable, and therefore while I do not have to deal with you for the next two years, its still in my best interest to pay it off as soon as I can while I have no other debts to pay for." The bank manager says "That's not our problem. The account has already been closed we can not reinstate it." Now... By Jim's understanding (and frankly I agree), by not disclosing the cancellation of the account, the bank has violated the contract. Even though they are in their right to close an account and send the loan straight to collections, they should have to notify him. If the loan is not bankruptable, then the bank should be allowed to call Jim to continue to make arrangements. The no-harrassment from creditors while under bankruptsy protection should not apply to an institution whose loan is exempt from bankruptsy. Make sense? Since they refuse to deal with Jim, they obviously don't want his money. It clearly indicates that they are only in the business for the interest payments, and since they cannot collect interest for the next two years, they have no interest in his business. Because they feel screwed the bank will not release the information on where the account has been sent, so Jim has to wait until the collection agency calls him. Who of course won't call him for the next two years becuase they are not allowed. When the agency does finally call Jim, some 5 years after the bankruptsy protection has expired, approximately 7 years after he declared bankruptsy in the first place, he finds that his student loan now has almost 5 years interest added onto it, making it now just over $5000.00. Of course he has a fit. First of all, the bank refused to take his money when he was trying to pay it. They CLOSED his account leaving him without a financial institution to work with. (You need a bank to process your bankruptsy payments as bankruptsy is not free.) Now someone else is calling him and saying they want more money than the bank wanted in the first place. Now the collection agency is not a finanical institution. They do not lend money or provide financial aid. They're only there to scare Jim into paying a debt he had every intention of paying in the first place. So how can they charge interest? If anything, they should only be allowed to collect the principal balance remaining on the loan. The interest he agreed to pay to the bank is now void as the bank has voided the contract. Essentially they collection agency's document which does bare his signature is an IOU to a different institution (his former bank) for only $4000.00. Jim does not have an agreement with the collection agency so they should not be able to charge him interest. Seeing how he has no way to find out who has his loan since the bank is not obligated to release that information to him. It is clearly a violation of his rights and borders on professional financial harrassment. In the very least, the collection agency if allowed to charge interest if mandated by law, then it should only start acruing the interest from the moment they make contact with him and settle on a new payment arrangement. (Now before I get any naysayers, this is a true story. Obviously Jim McJimbo is not a real name, and I have omitted the name of the bank and the collection agency as this situation is still ongoing. I just felt like sharing the story as it seems unfair to me. But then again, I neither own a bank, nor do I run a collection agency. I have done the research into credit counselling vs consumer proposal vs bankruptsy and in the above situation bankruptsy was the best solution.) Jim McJimbo has 6 creditors of various types. Lets say a couple credit cards, a personal loan, a student loan, and two really over due utilities.

He goes to get some financial advice and comes up with three options, consumer proposal, credit councelling, and of course bankruptsy. Now his debt-load is approximately $20,000. The interest is doing him in since he was cut to part time. Over several days investigation it turns out that bankruptsy is the safest option so he signs the paperwork. Now for the next two years he’s essentially debt free as he’s protected by the trustee, however the trustee informs him that his student loan of $4000 is not bankruptable so he should make arrangements with his bank to keep paying the loan as the bank holding the loan is except from the preferential treatment of creditors fault.

Within 48 hours Jim goes to his bank to discuss the payment arrangement since the bank is not allowed to contact him (see earlier protection statement), only to find that the bank has closed his account and has automatically sent his loans to a collection agency without notifying him. He asks “What the hell is going on here? You don’t want my money?” The bank teller gets the manager who says “You went bankrupt.” Jim replies “A student loan is not bankruptable, and therefore while I do not have to deal with you for the next two years, its still in my best interest to pay it off as soon as I can while I have no other debts to pay for.” The bank manager says “That’s not our problem. The account has already been closed we can not reinstate it.”

Now… By Jim’s understanding (and frankly I agree), by not disclosing the cancellation of the account, the bank has violated the contract. Even though they are in their right to close an account and send the loan straight to collections, they should have to notify him. If the loan is not bankruptable, then the bank should be allowed to call Jim to continue to make arrangements. The no-harrassment from creditors while under bankruptsy protection should not apply to an institution whose loan is exempt from bankruptsy. Make sense? Since they refuse to deal with Jim, they obviously don’t want his money. It clearly indicates that they are only in the business for the interest payments, and since they cannot collect interest for the next two years, they have no interest in his business. Because they feel screwed the bank will not release the information on where the account has been sent, so Jim has to wait until the collection agency calls him. Who of course won’t call him for the next two years becuase they are not allowed.

When the agency does finally call Jim, some 5 years after the bankruptsy protection has expired, approximately 7 years after he declared bankruptsy in the first place, he finds that his student loan now has almost 5 years interest added onto it, making it now just over $5000.00. Of course he has a fit. First of all, the bank refused to take his money when he was trying to pay it. They CLOSED his account leaving him without a financial institution to work with. (You need a bank to process your bankruptsy payments as bankruptsy is not free.) Now someone else is calling him and saying they want more money than the bank wanted in the first place. Now the collection agency is not a finanical institution. They do not lend money or provide financial aid. They’re only there to scare Jim into paying a debt he had every intention of paying in the first place. So how can they charge interest? If anything, they should only be allowed to collect the principal balance remaining on the loan. The interest he agreed to pay to the bank is now void as the bank has voided the contract. Essentially they collection agency’s document which does bare his signature is an IOU to a different institution (his former bank) for only $4000.00. Jim does not have an agreement with the collection agency so they should not be able to charge him interest. Seeing how he has no way to find out who has his loan since the bank is not obligated to release that information to him. It is clearly a violation of his rights and borders on professional financial harrassment. In the very least, the collection agency if allowed to charge interest if mandated by law, then it should only start acruing the interest from the moment they make contact with him and settle on a new payment arrangement.

(Now before I get any naysayers, this is a true story. Obviously Jim McJimbo is not a real name, and I have omitted the name of the bank and the collection agency as this situation is still ongoing. I just felt like sharing the story as it seems unfair to me. But then again, I neither own a bank, nor do I run a collection agency. I have done the research into credit counselling vs consumer proposal vs bankruptsy and in the above situation bankruptsy was the best solution.)

]]> By: Sadly Experienced http://gailvazoxlade.com/blog/archives/323/comment-page-1#comment-43308 Sadly Experienced Wed, 14 Jul 2010 14:29:42 +0000 http://gailvazoxlade.com/blog/?p=323#comment-43308 This site states that if you do not deal with a collection agency the next step that the creditor will take is going to court. I was too stubborn to go bankrupt when my affairs had an abrupt turn for the worse. I could not pay anything for two years and I had collection agencies calling me literally continuously. No amount was for over 10K mind you. However, what happens in real life on the accounts I had experience with (CIBC, BMO and similar) after the agency fails to collect they go away and a few weeks later a NEW agency calls on the same debt. This can go on literally for years. I even had BMO get a judgement against me in small claims (I was not even in the country when they 'served' me!!). I have been through three (!!) collection agencies with them since and NO collection agency has ever been told that there is a judgement outstanding. One needs to recall that most consumer debts are very small and the cost to collect is very high. Frequently, however much they harass you there is little incentive for the creditor to go to court. So...if you don't like an agency (watch out for CollectCom and TCR!) just don't pay they will go away. When you get someone you can deal with, do a deal with them if you can. Unfortunately, good front line staff at collection agencies vanish fast. Also, another point, if you have a strong will - go through an agency or two and you will start to get 'settlement' offers - do not accept anything under 50% off. If they are not offering 50% wait for another agency. Obviously, these are aggressive tactics and assume that a) you would like to pay and b) you can not pay the debts as they stand and c) you do not wish to go bankrupt. Always remember the agencies get paid a commission (a large one) for results and you owe them nothing, zip, de nada. If the original creditor chooses to put you in collection and not deal/settle with you that is THEIR choice. Make a budget and stick to it - it will help when these people call. Look for humour too - some collections people will tell you the strangest things - so just laugh. IF they really harass you, send them a letter about what their front line person said/did. This sometimes makes an agency go away for months! Remember, in Canada, if you are in collection your credit is RUINED so take your time, follow your budget and keep smiling. Also remember, just because you are paying an agency they do not report this to the credit bureau! So...even if you are paying your credit score is not positively impacted. Good Luck! This site states that if you do not deal with a collection agency the next step that the creditor will take is going to court. I was too stubborn to go bankrupt when my affairs had an abrupt turn for the worse. I could not pay anything for two years and I had collection agencies calling me literally continuously. No amount was for over 10K mind you. However, what happens in real life on the accounts I had experience with (CIBC, BMO and similar) after the agency fails to collect they go away and a few weeks later a NEW agency calls on the same debt. This can go on literally for years. I even had BMO get a judgement against me in small claims (I was not even in the country when they ’served’ me!!). I have been through three (!!) collection agencies with them since and NO collection agency has ever been told that there is a judgement outstanding. One needs to recall that most consumer debts are very small and the cost to collect is very high. Frequently, however much they harass you there is little incentive for the creditor to go to court. So…if you don’t like an agency (watch out for CollectCom and TCR!) just don’t pay they will go away. When you get someone you can deal with, do a deal with them if you can. Unfortunately, good front line staff at collection agencies vanish fast. Also, another point, if you have a strong will – go through an agency or two and you will start to get ’settlement’ offers – do not accept anything under 50% off. If they are not offering 50% wait for another agency. Obviously, these are aggressive tactics and assume that a) you would like to pay and b) you can not pay the debts as they stand and c) you do not wish to go bankrupt. Always remember the agencies get paid a commission (a large one) for results and you owe them nothing, zip, de nada. If the original creditor chooses to put you in collection and not deal/settle with you that is THEIR choice. Make a budget and stick to it – it will help when these people call. Look for humour too – some collections people will tell you the strangest things – so just laugh. IF they really harass you, send them a letter about what their front line person said/did. This sometimes makes an agency go away for months! Remember, in Canada, if you are in collection your credit is RUINED so take your time, follow your budget and keep smiling. Also remember, just because you are paying an agency they do not report this to the credit bureau! So…even if you are paying your credit score is not positively impacted.

Good Luck!

]]> By: Sue http://gailvazoxlade.com/blog/archives/323/comment-page-1#comment-25663 Sue Wed, 10 Feb 2010 16:00:57 +0000 http://gailvazoxlade.com/blog/?p=323#comment-25663 Hoping someone can help me with this question... In Ontario, once an account is sold to a collection agency does interest continue to accrue at the same rate as the original debt or does the interest stop all together? Hoping someone can help me with this question…

In Ontario, once an account is sold to a collection agency does interest continue to accrue at the same rate as the original debt or does the interest stop all together?

]]> By: Gail http://gailvazoxlade.com/blog/archives/323/comment-page-1#comment-23182 Gail Wed, 13 Jan 2010 11:23:48 +0000 http://gailvazoxlade.com/blog/?p=323#comment-23182 Dee: There is information online that you should read: http://www.gs.gov.nl.ca/cca/tp/collection-agencies/ If you want to make a complaint, you can here: Trade Practices and Licencing Division Confederation Building, West Block, 2nd Floor, P.O. Box 8700 St. John's, Newfoundland and Labrador A1B 4J6 Tel: (709) 729-2660 Fax:(709) 729-3205 Email: info.gsl@gov.nf.ca Or online here: http://consumerinformation.ca/app/oca/ccig/main.do?language=eng Dee: There is information online that you should read: http://www.gs.gov.nl.ca/cca/tp/collection-agencies/

If you want to make a complaint, you can here:
Trade Practices and Licencing Division
Confederation Building, West Block, 2nd Floor,
P.O. Box 8700
St. John’s, Newfoundland and Labrador
A1B 4J6
Tel: (709) 729-2660
Fax:(709) 729-3205
Email: info.gsl@gov.nf.ca

Or online here: http://consumerinformation.ca/app/oca/ccig/main.do?language=eng

]]> By: dee http://gailvazoxlade.com/blog/archives/323/comment-page-1#comment-23171 dee Wed, 13 Jan 2010 05:51:27 +0000 http://gailvazoxlade.com/blog/?p=323#comment-23171 I have paid off a debt owed in full to a collection agency and they are refusing to report my payment to equifax and they tell me they are going to send me a letter of release so i can report it myself but it has already been almost a month and i still havent recieved the letter...i thought they were lying about sending it since it shouldn't take this long to get it in the mail..so i spoke to a "manager" there today who said he would email me the letter of release later today...well the email never came either so now that really makes me believe they just lie about anything just to get you off the phone...is this legal for them to refuse to report my payment to equifax? I also asked them to email me something stating they have sent out the letter of release so i have proof of the letter being sent in writing, which they also didn't do for me...where do i go from here?..how can i force them to provide proof of payment? I have paid off a debt owed in full to a collection agency and they are refusing to report my payment to equifax and they tell me they are going to send me a letter of release so i can report it myself but it has already been almost a month and i still havent recieved the letter…i thought they were lying about sending it since it shouldn’t take this long to get it in the mail..so i spoke to a “manager” there today who said he would email me the letter of release later today…well the email never came either so now that really makes me believe they just lie about anything just to get you off the phone…is this legal for them to refuse to report my payment to equifax? I also asked them to email me something stating they have sent out the letter of release so i have proof of the letter being sent in writing, which they also didn’t do for me…where do i go from here?..how can i force them to provide proof of payment?

]]> By: This & That: Krazy Kids & Their Parents Edition « gailvazoxlade.com http://gailvazoxlade.com/blog/archives/323/comment-page-1#comment-18919 This & That: Krazy Kids & Their Parents Edition « gailvazoxlade.com Tue, 03 Nov 2009 09:49:20 +0000 http://gailvazoxlade.com/blog/?p=323#comment-18919 [...] the collection calls, there are rules about when and how often a collection agency can call. Read this. Lisa wrote: Okay, my husband and I make good money (130,000)annual. I have been giving the [...] [...] the collection calls, there are rules about when and how often a collection agency can call. Read this. Lisa wrote: Okay, my husband and I make good money (130,000)annual. I have been giving the [...]

]]> By: Jessica http://gailvazoxlade.com/blog/archives/323/comment-page-1#comment-9700 Jessica Tue, 21 Apr 2009 13:30:27 +0000 http://gailvazoxlade.com/blog/?p=323#comment-9700 Three years ago i had a rogers cable account with some roomates. When we decided to all move out i called and had the account cancelled and paid off the account and returned the cable boxes. The funny thing is that about a month agoi recieved a call from a collections agency telling me that i have an oustanding bill because i did not return the two boxes?! they want a receipt showing it was returned but that was 3 years ago? And the fact that this has been sitting on my credit for 3 years burns me to. Any suggestions on what i should do about this to get this off my credit? and who i should call?? NEED HELP!!!!!! Three years ago i had a rogers cable account with some roomates. When we decided to all move out i called and had the account cancelled and paid off the account and returned the cable boxes. The funny thing is that about a month agoi recieved a call from a collections agency telling me that i have an oustanding bill because i did not return the two boxes?! they want a receipt showing it was returned but that was 3 years ago? And the fact that this has been sitting on my credit for 3 years burns me to. Any suggestions on what i should do about this to get this off my credit? and who i should call??

NEED HELP!!!!!!

]]> By: Kim U http://gailvazoxlade.com/blog/archives/323/comment-page-1#comment-4988 Kim U Sun, 18 Jan 2009 23:27:14 +0000 http://gailvazoxlade.com/blog/?p=323#comment-4988 My husband and I used to live with a whole bunch of people. As they left, by and by we became the payer of the phone bill. I only got a call from one person regarding the debt of one of the people who had left... I'll call her Sally. He asked if I was Sally. I said no, she moved out a month ago. He asked if I knew her new address. I said no. He asked AGAIN if I was Sally. I said, nope, not Sally. Never heard from him again. ... It was a very odd experience. My husband and I used to live with a whole bunch of people. As they left, by and by we became the payer of the phone bill. I only got a call from one person regarding the debt of one of the people who had left… I’ll call her Sally. He asked if I was Sally. I said no, she moved out a month ago. He asked if I knew her new address. I said no. He asked AGAIN if I was Sally. I said, nope, not Sally. Never heard from him again.

… It was a very odd experience.

]]> By: edgarella http://gailvazoxlade.com/blog/archives/323/comment-page-1#comment-4951 edgarella Fri, 16 Jan 2009 20:46:56 +0000 http://gailvazoxlade.com/blog/?p=323#comment-4951 PS to the 407 story - the huge drag is that they couldn't cash us the rest of the good faith payment, so we can ride the 407 free for probably years, since we rarely use it :-( I don't think there's an actual formula over there for dealing with stuff, you just have to work it out on a case-by-case basis with a person - and being kind and polite really does help in these situations! It was a mistake all around, and not really anyone's fault (except for whoever is in charge of their business process). PS to the 407 story – the huge drag is that they couldn’t cash us the rest of the good faith payment, so we can ride the 407 free for probably years, since we rarely use it :-(

I don’t think there’s an actual formula over there for dealing with stuff, you just have to work it out on a case-by-case basis with a person – and being kind and polite really does help in these situations! It was a mistake all around, and not really anyone’s fault (except for whoever is in charge of their business process).

]]> By: edgarella http://gailvazoxlade.com/blog/archives/323/comment-page-1#comment-4950 edgarella Fri, 16 Jan 2009 20:44:10 +0000 http://gailvazoxlade.com/blog/?p=323#comment-4950 The EXACT SAME 407 thing happened to us!!! And we were able to clear it up without too much problems. Here's what happened to us The actual charge was for less than $10, on a plate belonging to a car we then traded in, and we subsequently moved, so we never got any bills for that charge. For almost 10 years that charge accrued interest that we knew nothing about. We had a new 407 account on our next car. It took them almost 10 years to realize we were the same people. And of course we never clued in, assuming that they would have the technology to check an account holder name to see if they exist on the system with different plates (apparently not). They are administratively challenged over there! When we got this massive bill and freaked out, we called and spoke to a managerial type person who explained they have a 'good faith' plan for instances where this happens - obviously it's not rare. We had to request all the bills, once they sent us all the bills we paid a certain percentage, then they credited us all the rest, on our current account. So we did have to pay something - I think about $90, but in the end our $300+ bill was cleared and the $90 minus the original charge of something like $7 was credited to us. So it's possible to deal with, but it did take a lot of calls and paperwork. The EXACT SAME 407 thing happened to us!!! And we were able to clear it up without too much problems.
Here’s what happened to us
The actual charge was for less than $10, on a plate belonging to a car we then traded in, and we subsequently moved, so we never got any bills for that charge. For almost 10 years that charge accrued interest that we knew nothing about. We had a new 407 account on our next car. It took them almost 10 years to realize we were the same people. And of course we never clued in, assuming that they would have the technology to check an account holder name to see if they exist on the system with different plates (apparently not). They are administratively challenged over there! When we got this massive bill and freaked out, we called and spoke to a managerial type person who explained they have a ‘good faith’ plan for instances where this happens – obviously it’s not rare. We had to request all the bills, once they sent us all the bills we paid a certain percentage, then they credited us all the rest, on our current account. So we did have to pay something – I think about $90, but in the end our $300+ bill was cleared and the $90 minus the original charge of something like $7 was credited to us. So it’s possible to deal with, but it did take a lot of calls and paperwork.

]]> By: Shelley http://gailvazoxlade.com/blog/archives/323/comment-page-1#comment-4907 Shelley Thu, 15 Jan 2009 15:35:48 +0000 http://gailvazoxlade.com/blog/?p=323#comment-4907 This is interesting, as I have a similar story about collections agency and Rogers. My husband had a phone with Rogers and an unpaid bill of $700.00 and it went to collections. We made and fulfilled a 5 month payment plan with the collections agency. Recently, we requested our credit reports be sent to us free by mail (it took about 2 weeks to receive) and his credit report is showing the collections agency's notes about the debt being paid but Rogers is showing it as a bad debt still outstanding. I am wondering if this is a problem that occurs frequently when the debt is settled with the agency and not the original company? Any insights would be appreciated as the debt was settled over a year ago and it's affecting his credit horribly. Thanks! This is interesting, as I have a similar story about collections agency and Rogers. My husband had a phone with Rogers and an unpaid bill of $700.00 and it went to collections. We made and fulfilled a 5 month payment plan with the collections agency. Recently, we requested our credit reports be sent to us free by mail (it took about 2 weeks to receive) and his credit report is showing the collections agency’s notes about the debt being paid but Rogers is showing it as a bad debt still outstanding. I am wondering if this is a problem that occurs frequently when the debt is settled with the agency and not the original company? Any insights would be appreciated as the debt was settled over a year ago and it’s affecting his credit horribly. Thanks!

]]> By: Suby http://gailvazoxlade.com/blog/archives/323/comment-page-1#comment-4905 Suby Thu, 15 Jan 2009 14:54:23 +0000 http://gailvazoxlade.com/blog/?p=323#comment-4905 Hi, I recently was told by a friend that a large communications company sent a PERSON to her house to collect the $62.00 she owed them. Can they do this? Hi, I recently was told by a friend that a large communications company sent a PERSON to her house to collect the $62.00 she owed them. Can they do this?

]]> By: psychsarah http://gailvazoxlade.com/blog/archives/323/comment-page-1#comment-4895 psychsarah Thu, 15 Jan 2009 03:39:49 +0000 http://gailvazoxlade.com/blog/?p=323#comment-4895 Thanks for the tips everyone-now I have to decide if its worth taking a day off work-I live a few hours away from the 407 office. It was a charge on a plate that we possessed at one point in time, but not at the time when they say the charge was made. In fact, the plate did not exist at the time that they say the charge was incurred. It's absolutely crazy-making!! Thanks for the tips everyone-now I have to decide if its worth taking a day off work-I live a few hours away from the 407 office. It was a charge on a plate that we possessed at one point in time, but not at the time when they say the charge was made. In fact, the plate did not exist at the time that they say the charge was incurred. It’s absolutely crazy-making!!

]]> By: Cynthia http://gailvazoxlade.com/blog/archives/323/comment-page-1#comment-4891 Cynthia Wed, 14 Jan 2009 22:56:30 +0000 http://gailvazoxlade.com/blog/?p=323#comment-4891 As far as I can recall for collection agencies in Ontario, you can ask that they only contact you in write. They are also not allowed to harass your other family members: parents, siblings, etc. I believe they can contact them only if they are co-signers. I suspect that we will see a lot of bankruptcies this year, unforunately. People still don't know or ignore where to turn to get help. As far as I can recall for collection agencies in Ontario, you can ask that they only contact you in write. They are also not allowed to harass your other family members: parents, siblings, etc. I believe they can contact them only if they are co-signers.

I suspect that we will see a lot of bankruptcies this year, unforunately. People still don’t know or ignore where to turn to get help.

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