What Happens if a Car Dealership Sells Your Debt to a Collector?

Question from The law, What Happens if a Car Dealership Sells Your Debt to a Collector?

Answer from AI:

If a car dealership has sold your debt to a debt collector or bailiff, and you have a payout ready but are being refused a statement of account until you endorse a cheque to the dealership, there are several important steps and legal considerations to be aware of. This situation can be complex, and understanding your rights and obligations is crucial.

Understanding Debt Sale and Collection

When a car dealership sells your debt to a debt collector, the following typically occurs:

• The debt collector now owns the debt and has the right to collect the amount owed.
• You should receive a notification from the dealership and/or the debt collector about the transfer of the debt.
• The debt collector must follow specific regulations and laws regarding debt collection practices.

Your Rights Under Canadian Law

In Canada, debt collection practices are regulated by both federal and provincial laws. Key points include:

• Fair Debt Collection Practices: Debt collectors must adhere to fair practices, which include providing you with a statement of account upon request. This is outlined in various provincial laws, such as the Ontario Collection and Debt Settlement Services Act.
• Right to Information: You have the right to know the details of your debt, including the amount owed, any interest or fees, and the original creditor.
• Prohibited Practices: Debt collectors cannot use deceptive practices, such as refusing to provide a statement of account until you make a payment.

Steps to Take

If you find yourself in this situation, consider the following steps:

1. Request a Statement of Account in Writing: Send a written request to the debt collector for a statement of account. Keep a copy of this request for your records.
2. Document All Communications: Keep detailed records of all communications with the debt collector and the dealership, including dates, times, and the content of conversations.
3. Know Your Rights: Familiarize yourself with the debt collection laws in your province. For example, in Ontario, you can refer to the [Ontario Collection and Debt Settlement Services Act](https://www.ontario.ca/laws/statute/10c06).
4. Seek Legal Advice: If the debt collector continues to refuse to provide a statement of account, consider seeking legal advice. A lawyer can help you understand your rights and take appropriate action.
5. File a Complaint: If the debt collector is violating your rights, you can file a complaint with your provincial consumer protection office. For instance, in Ontario, you can contact the [Ministry of Government and Consumer Services](https://www.ontario.ca/page/consumer-protection-ontario).

When to Consult a Legal Professional

Given the complexities of debt collection laws and your specific situation, it is often advisable to consult with a legal professional. A lawyer can provide personalized advice, help you understand your rights, and assist in resolving disputes with the debt collector or dealership.

Additional Resources

For more information, you can refer to the following resources:

• Financial Consumer Agency of Canada: Debt Collection
• Consumer Protection Ontario

Remember, while this information provides a general overview, it is not a substitute for legal advice. Always consult with a legal professional for advice tailored to your specific circumstances.