CDN Statute of Limitations (Debt) Explanation?

Question

I have done a lot of reading on this, and generally I get the same definition:

"Ontario - The Ontario Limitation Act 2002 , came into force on January 1, 2004. It sets two years as the term (Section 4). This limitation will be reinstated where the debtor ACKNOWLEDGES the debt or makes a partial payment towards repayment of his debt. If the default occurred prior to January 1, 2004, the creditor will continue to have 6 years to pursue the claim. However, if the default occurred after January 1, 2004 then the 2-year rule applies."

That "acknowledges" part is what confuses me. What legally is considered acknowledgement? Also when a collection agency calls, can you simply tell them too much time has passed if it has been longer than 6 years, or would that be considered an acknowledgement?

Answer 1

Acknowledgement of debt is a statement that explicitly or implicitly says that you owe and should pay the debt. Not acknowledging the debt means that you say the debt is spurious.



If the creditor finds that you are denying a debt and takes you to court where you must acknowledge the debt or show cause, you may have to acknowledge and be required to pay the debt by court order.



So, as we reach our two year limit, we have to push for acknowledgment, payment, or we have to go to court.

Answer 2

In most cases they try to get you to make a small "token" payment on the debt. This small payment is an acknowledgement (who would pay anything on a debt that isn't theirs?") and a fairly common trick as most of us would look upon it as a "good faith" gesture not a trick to bring the debt current.



In most cases it's best not to deal with the collection agencies anyway, simply deny the debt and ask them to send proof (a signed contract or something with your signature on it) to validate it. Ask when the debt was incurred and then point out that the debt is stats barred.



The collection agency will deny that, I guarantee it but at this point they've already done their worst. They've reported it to the credit bureaus and for six years from the date of default it's going to sit there dragging down your credit score.

Answer 3

You'd have to check case law in Ontario to see what they define as acknowledgment, but typically in America, you would have to "admit" that the debt is yours in writing, or of course make some type of a payment.



Of course this would only apply to American states that allow resetting of the statute of limitations, which not all of them do.

Answer 4

The time for the Statute of barriers is going from the date of final interest (it quite is frequently your final fee). That has looooong for the reason that exceeded if what you're saying is right. that's what's called a zombie debt. they are in a position to pursue you for it, and that they are in a position to even record healthful against you for it, yet once you answer the healthful and cite the Statute of barriers as an affirmative protection, they can't win against you. tell them to flow pound sand. they are in a position to't win against you in courtroom and you have not have been given any incentive to pay it, given it quite is off your credit checklist. If it shows up on your credit checklist, dispute it and it's going to fall off.