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What allows the statute of limitations on debt collection to be reset?

asked November 22, 2017 by Anonymous

A friend was recently contacted by a collection agency regarding an old credit card debt from over 4 years ago.  The collection agent they spoke with mentioned “the statute” casually during the conversation, but did not elaborate.  
We’ve done some research, and learned that the statute of limitations for legal action on a debt if you reside in Ontario is 2 years.  We’ve also seen some references to situations that would reset the statute.  My friend has not provided anything to them in writing, only spoken with them on the phone.  She made tentative plans to pay a settlement amount with them, and they have sent a written confirmation of their offer, however she has not submitted the payment yet, and based on our research, it becomes unclear whether the conversations she had would trigger the statute to reset for this debt, as the calls were “recorded for training and quality purposes.”
Can you please to clarify whether their interaction thus far would reset the statute?
Many thanks,

1 answer

Staff November 29, 2017

Lets start out by stating that we are not attorneys and are not providing any legal advice.  From looking at our research, if the statute has ran out and no payments have been made, an oral agreement means nothing. If a payment was made, that appears to be a different story.  I would consult with an attorney for a definitive answer. Good luck, and please let us know how it goes.

answered 1 year ago by


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