Collection Agency Still Claims I Owe Money

Question: A secondary collection service collected funds from me for another agency, which I payed off in full, but last month I was going to increase my visa limit and found out that they now have another collection against me which they claim is interest. I never received any letters or calls to my place of work after the full payment. Who can I contact legally about this, and what are my chances. Thanks for the help.

Answer: You should start by contacting the original creditor (not the collection agency).  You should also contact both collection agencies with proof of payment.  If you are not able to resolve the matter directly with the second collection agency, it is possible that they may take legal action against you.  If they do, be prepared to bring proof to court that you paid the debt in full.  In most cases if you present the proof to the collection agency they will correct their records without the need for you to go to court.

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  1. AvatarMichelle

    If I settled a debt with a third party collection agency. And I am now finding out that they never closed my account. And they never notified the original debt holder. And now the third party collection agency is refusing to help me. What can I do?’

  2. AvatarJ. Douglas Hoyes

    Hi Michelle. You give a good example of the problem with attempting to settle debts directly with a collection agency. For the settlement to be valid, you need to get written acknowledgement from the third party collection agency that they represent the creditor, and that upon receipt of your payment the debt is fully settled. If you have that paperwork and they attempt to pursue you, you can take legal action against them. Without that proof, it’s your word against there’s, which puts you in a tricky position.

    Your options at this point would be to talk to the original creditor, and if that doesn’t work you may need to consult a lawyer.

    If you have other debts, you could consult one of our advisors to determine if there is a solution to deal with all of your debts, including the old one.

  3. AvatarGary Jones

    I understand that the law in Canada requires that a creditor provide regular statements about what and why an amount is owing, but I can’t find the information anywhere. I was put in collection by London Middlesex Housing who filed to provide me with any accounting of what and why I owe anything going back five years. The amount was paid by someone else but I want the money refunded to them. .

  4. AvatarTed Michalos

    I am not aware of any specific law that allows you to demand 5 years of payment history from a creditor. A current statement of account certainly, but beyond that I think the only way to compel them is to actually be in a legal action. The Court will support any reasonable request for information if it directly relates to the matter before it. Sorry, a lawyer might give you a different answer, but I don’t know of anyway to compel a creditor to give you old account information.

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