credit collections
Question: My boyfriend had to drop of his program at college — he was not notified but apparently did not withdraw properly. His mom was contacted through a third-party collection agency telling him he owed them $1400. He is currently on Unemployment Insurance and this has come up at a bad time. He is also about to go back to school this coming September so he is not going to be wealthy any time soon. He did not attend one day of this semester they are forcing him to pay for. He spoke to the collection agency recently and they asked him to at least put down $100 the end of the month. He said he would but still has not. I realize the Statue of limitations is 2 years in ontario, so how can he tell the specific date that the debt was sent to the collection agency? What advice do you have for him?
Answer: You are correct, the Statute of Limitations in Ontario is calculated as two years from the last payment on the debt. If he has not made any payments, the calculation would start from when he received the loan. The rules are complicated, so for further information he could contact a lawyer specializing in collection agency issues.
If he is currently not working, they cannot garnishee his wages, so his best option may be to simply wait until he is working to deal with the debt. He could speak to a not for profit credit counsellor for more information.