Collection agencies and companies
I am trying to avoid bankruptcy as it is pretty much not an option for me since I have student loans. I am not willing to wait 10 years after my last day in university before I can apply for a discharge. This being said, I have a few (2 bills) in collection at the present time. I am between jobs therefore am unable to make arrangements with either of them. One company in particular keeps sending me bills with late fees of almost 20$ per month. On top of that, I have a collection agency that keeps calling thretening legal action for the past 7 months. That collections agency is representing the first mentionned company. I have been reading the bill C-8 on collection and can’t find much in there other than some minor offences on the manner they are collecting. Not much sense for me to report them as they will only get a slap on the wrist from the province (New-Brunswick)and I expose myself to more than threats of legal actions. My question is, once an account is sent to a collection agency, can the company in question keep the account in their books and keep increasing the amount owed to them and have the collection agency increase their amount to match that balance? Can they keep charging interest on the original collection amount? Secondly I still have equippement on my property belonging to the company in question (propane company) but I believe the content is too heavy for them to lift. Other than asking them to take it away, is there anyting else I can do about that? If they do eventually take the equippement away, are they obligated to credit my account with the unused fuel in the tank? I have assked them to do that almost 2 years ago and they still haven’t acted yet. I have contacted another propane gaz provider and they are willing to take out the previous companies equippement at no charge but I don’t want 2 propane tanks lying arround as I believe this to be an insurance liability. Finally, If I ever do decide to file for either a proposal or bankruptcy, how will that assist me in this bad relationship with this company. (Our relationship started on the soure side and they have denied their errors although I still agree to eventually pay due to lack of proof). I can understand that they want their money and they might feel that I am acting out of bad faith as I am refusing to make arrangements due to my present employement situation, however, I can’t understant why they are not taking steps in order to minimize their risk by leaving their equippement here. I am using the fuel but it will take another 1-2 years until it’s all gone. I don’t want to keep paying rental fees plus late charges plus possible leagal actions. That sweems to me to be bad faith on their part. Thanks for your help!
Firstly, interest will continue to accrue regardless of is collecting the debt. Who will charge this interest really depends on how the collection contract is set up, but normally the original lender writes off the bad debt and sells it to a collection agent and the agency handles everything from there. However, there are many different ways the collection agency can be employed (i.e. commission basis…) so what you have described is very possible.
Secondly, the equipment in your possession, the only thing you can really do is provide them with a letter that details the number of requests you have made, their failure to comply, and provide them with a drop dead date. Clearly state that if no response is received or action taken within 45 days of this letter then this will be evidence that the company is no longer interested in the property and you have their permission to sell the items. Now you would be best served to sell the items and remit all proceeds received to that lender (as then you will not be in breech of the security contract). As for the unused fuel, they are not obligated to credit your account, chances are that they will impose a cleaning or disposal fee for having to deal with the contents of the container.
The third question is one that you should discuss with a local trustee as there is not enough information above for me to provide you with a qualified answer and things can change significantly from one province to the next.