got a letter from Financial Debt Recovery Ltd. (FDR)

[Paranoidandroid]

Recently my mother received a letter from "FDR" http://www.fdr.on.ca stating that she owes $2000 to HBC, and threatened legal action. My mom doesn't recall owing any amount to HBC at all. After calling them, they told me this was owed about 10 years ago, and the amount accumulated in time. They gave me the 'option' of settling it today for $1000. When I asked them for evidence/proof that we do owe this amount, they denied it and said "this isn't a joke". They said the letter given was a legal document (which is 100% BS, the letter came from the firm), and it was a summon. Finally, we basically told them to **** off and they said they'll settle this in court.

After calling HBC's credit department, they confirmed that they know nothing about this particular case, and added that they wouldn't chase you for money owed over seven years ago.

I checked several pages online and they seem to be quite abusive...
http://www.straight.com/article/surviving-student-debt
http://www.canadastudentdebt.ca/forum_posts.asp?TID=3827

The issue is not paying the amount, but the fact that they refuse to provide any evidence/records that this is what my mother owes. Although we're sure we don't owe anything, this agency seems legit. What can I do about this?

[3weddings]

Wow...thanks for that post, it's informative!

I hear more and more often about companies like this coming after innocent people and coercing them into paying. Most won't stand up and research like you did.

[kitbor]

Rule of thumb; if they can't/refuse to provide you the evidence, then it's a scam.

[dmxlite]

Recently my mother received a letter from "FDR" http://www.fdr.on.ca stating that she owes $2000 to HBC, and threatened legal action.
...
After calling HBC's credit department, they confirmed that they know nothing about this particular case, and added that they wouldn't chase you for money owed over seven years ago.
...
The issue is not paying the amount, but the fact that they refuse to provide any evidence/records that this is what my mother owes. Although we're sure we don't owe anything, this agency seems legit. What can I do about this?

Get HBC's confirmation in writing, or tape record it (with their consent of course), especially that part about them not chasing an account after seven years.

If there really is no debt, they're probably made a mistake (or it was some identity switch by the real debtor). That's why you need some kind of proof from FDR and/or HBC.

If there is a debt, and HBC did give up on it, like the CSR mentioned, then FDR probably bought old files from HBC, and now they're trying to scare you into paying something you no longer owe.

If they get abusive, sue them.

[3weddings]

then FDR probably bought old files from HBC, and now they're trying to scare you into paying something you no longer owe.



Is there a rule of thumb about old debts, do they eventually become null and void?

[Octavius]

Is there a rule of thumb about old debts, do they eventually become null and void?

Rule of thumb is about 5-7 years...although technically they can go after you years after that.

But for all intents and purposes if they haven't harassed you or done anything within the 5 year period to collect from you or even contact you then the court will (at least partially) side with you.

It would be considered unfair for you to pay off this debt that practically "came out of the blue" that appeared to have been given up on 5 years ago.

Very different story if they've been bugging you constantly for 5 years to pay up and then seeked legal action.

[pitz]

Most provinces have a Limitations Act which prevents very old debts from being claimed anyways.

[krazy]

If they want to meet in court... so be it.

Court looks at evidence, which they don't have in the first place. so it's a 100% scam trying to scare people.

Without any evidence nobody will try to take you to court... and for something this ridiculous, you could counter sue for harrassment