Loans Canada Launches Free Credit Score Portal And Is Recognized As One Of Canada’s Top Growing Companies
Loans Canada is pleased to announce it placed No. 131 on the 2022 Report on Business ranking of Canada’s Top Growing Companies.
Both the Federal and Provincial Governments of Canada have statutes of limitation, which state the maximum, legal time that a lender or creditor has to peruse legal action on an unsecured debt. These laws state that if an unsecured debt is not collected and payments are not being made, within an allotted period of time, creditors and collection agencies cannot take legal action against you.
According to the Federal Government of Canada, debt generally cannot be pursued after 6 years. Based on which province you live in, the statute of limitations will vary, typically ranging anywhere from 2 to 10 years.
British Columbia | 6 years |
Alberta | 2 years* |
Saskatchewan | 2 years |
Manitoba | 6 years |
New Brunswick | 6 years |
Newfoundland and Labrador | 2 years |
Nunavut | 6 years |
Nova Scotia | 6 years* |
Ontario | 2 years** |
Quebec | 3 years |
Prince Edward Island | 6 years |
Yukon | 6 years |
North Western Territories | 6 years |
* The statute of limitations can be extended to 10 years if there’s a court judgment before the expiry of the original statute of limitations.
**If you make a payment towards your outstanding debt or acknowledge your debt before the end of your statute of limitations, then the statute of limitations rest.
Let’s say you live in Ontario and haven’t made any payments on your car loan. Your debt collector has up to two years to collect the outstanding debt and pursue legal action against you. If two years pass and you still haven’t made any payments toward your car loan, your debt collector cannot take legal action.
However, this does not mean that they cannot attempt to collect the debt from you. They can still contact you in an effort to collect payment. However, they cannot take legal action against you such as suing you to court.
Find out what happens when you miss a loan payment.
Creditors and collectors can reset this statute of limitations, which extends the amount of time that creditors and collectors can use the law in order to collect a debt. Resetting this law is based on the actions of you, the borrower. Any of these actions can re-age the debt, which basically resets the statute of limitations. With your debt re-aged, collectors have the time and right to take legal action in order to collect the debt.
If creditors or collection agencies ever contact you, do not answer their questions or give out voluntary information. Instead, take down their personal information and the details about your debt, mainly when your debt became past due. Verify the information and see if it’s correct. If your debt has passed the statute of limitations for your province, collectors are not legally allowed to sue you in order to collect the outstanding debt.
If a collector contacts you before the statute of limitation, then they have the right to take you to court. If they file a lawsuit against you, you will be notified. It may be in your best interest to speak to the collector and come up with an agreement.
It is extremely important to know the rules and regulations concerning debt collection, as this can prevent you from being taken advantage of. On the other hand, it should always be your number one goal to pay back your creditors and work toward being debt-free. Always check the statute of limitations for your province, and verify how long your creditor or lender has to take legal action against you.
Rating of 5/5 based on 198 votes.
Save time and money with Loans Canada. Research and compare lenders before you apply. Share your experiences with Canada's top lenders.
Loans Canada is pleased to announce it placed No. 131 on the 2022 Report on Business ranking of Canada’s Top Growing Companies.
Don’t pay until March with this offer from our partner, Fairstone.* Ends January 31st.
New Offer! Get up to $2,000 cashback + a $50 bonus on signing up. Conditions apply.
Earn an average 5%¹ cash back at thousands of partners and at least 0.5%² cashback guaranteed.
With KOHO’s prepaid card you can build a better credit score for just $10/month.
All consultations and conversations with Loans Canada and its partners are confidential and risk-free. Speak with a trusted specialist today and see how we can help you achieve your financial goals faster. Loans Canada and its partners will never ask you for an upfront fee, deposit or insurance payments on a loan. Loans Canada is not a mortgage broker and does not arrange mortgage loans or any other type of financial service.
When you apply for a Loans Canada service, our website simply refers your request to qualified third party providers who can assist you with your search. Loans Canada may receive compensation from the offers shown on its website.
Only provide your information to trusted sources and be aware of online phishing scams and the risks associated with them, including identity theft and financial loss. Nothing on this website constitutes professional and/or financial advice.