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I was recently contacted by a collection agency from Canada, it seems that unbeknownst to me my student loan had been split in two parts, one is fully paid - the other is now in default.

They have threatened to take me to court in Canada, which I've already told them is quite silly as I now live in the US.

What I am wondering is that because they called me in AK are they then subject to the FDCA, and AK collection Laws? Also with some further investigation, I found that they are not licensed in the either the US or the state I live. They have called several times demanding payment and have now sent a letter stating that they are demanding payment in full and their intent to sue.

I'm considering filing a suit here based upon their violations of the FDCA, and additionally that they are not a licensed agency. Do I have a leg to stand on??

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<blockquote>Originally posted by CAD

I was recently contacted by a collection agency from Canada, it seems that unbeknownst to me my student loan had been split in two parts, one is fully paid - the other is now in default.

They have threatened to take me to court in Canada, which I've already told them is quite silly as I now live in the US.</blockquote>

Do you ever plan on visiting Canada again? You should check Canadian laws and see if they can reach you across the border. Have they sent you a collection letter with a mini-miranda notice? Are they at least obeying Canadian collection laws? I would take this seriously.

<blockquote>What I am wondering is that because they called me in AK are they then subject to the FDCA, and AK collection Laws? Also with some further investigation, I found that they are not licensed in the either the US or the state I live. They have called several times demanding payment and have now sent a letter stating that they are demanding payment in full and their intent to sue.</blockquote>

My next step would be based on the answer to the previous question. I would either send these guys a Validation letter per the FDCPA or Canadian FDCPA if there is such a thing --- or I would send them a C&D. Either way, get ready to sue them. Start by collecting as much evidence as you can.

<blockquote>I'm considering filing a suit here based upon their violations of the FDCA, and additionally that they are not a licensed agency. Do I have a leg to stand on??

</blockquote>

Well, IANAL... but, since they are doing business in your state -AK- and your country -USA- they are subject to US law. I believe you may sue them and get possibly get a judgement. Good luck getting them to pay.

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Do you ever plan on visiting Canada again? You should check Canadian laws and see if they can reach you across the border. Have they sent you a collection letter with a mini-miranda notice? Are they at least obeying Canadian collection laws? I would take this seriously.

I am taking the matter extremely seriously, I have spoken to lawyers in both Canada and the US. Both have advised me to just wait until the matter is filed in a US court as Canadian judgements are not enforcable in AK without first filing again in court here.

I will probably never go back to Canada to live, but the rep at the CA agency implied in a phone call that I would never even be able to visit again (which I have since learned is completely ridiculous, they will not arrest me at the border for a civil judgement). I'm construing his statement as a threat without legal basis.

My next step would be based on the answer to the previous question. I would either send these guys a Validation letter per the FDCPA or Canadian FDCPA if there is such a thing --- or I would send them a C&D. Either way, get ready to sue them. Start by collecting as much evidence as you can.

I have already informed them that they would be receiving a letter disputing the total amount of the debt. I was waiting to get their first letter informing me of the debt before I sent it though.

More research today, I have found that while they do not have to be licensed in this state in order to collect for an out-of-state company, they do have to be licensed in order to take me to court. So at least on one point I have them on threatening to take legal action when they have no standing in this state to do so. They had also indicated that they would be proceeding against me Feb 25th @ 4pm during a phone call, which they have not done. In addition to statements in their letter which are in violation of FDCA.

Also I have found out that foreign CAs are required to comply with the FDCA and Consumer Protection Act here in AK.

Both opinions were found in the Attorney General Opinions on CAs (big thanks to the woman at the licensing office who helped direct me in the right direction).

Well, IANAL... but, since they are doing business in your state -AK- and your country -USA- they are subject to US law. I believe you may sue them and get possibly get a judgement. Good luck getting them to pay.

My intention is not so much in getting them to pay, but moreso that they should be held responsible for their actions - and maybe have my debt wiped out :D

I had already informed them that I had spoken to a lawyer here in the US and they scoffed at it and told me to get a second opinion, which I did get from a Canadian attorney who basically told me that they were giving me good grounds for a counter-suit here in the US.

So now I am looking to retain a lawyer and begin the process of filing here the second they file in Canada - which will include asking the case in Canada to dismissed based on jurisdiction. I suppose I have to thank them for telling me to get a second opinion!!

[Edit by CAD on Tuesday, March 4, 2003 @ 01:52 PM]

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<blockquote>My intention is not so much in getting them to pay, but moreso that they should be held responsible for their actions - and maybe have my debt wiped out :D </blockquote>

Make those @$$’s pay! ... I’m going through a similar ordeal with (2) US CA’s. I am amazed by how a CA will blatantly violate consumer protection laws. I don’t think it is just ignorance on their part. The law is very simple and they know they are violating your rights. They seem to have contempt for you and contempt for the law. They will try to convince you that everything they are doing is legal and justified. They act without fear of reprisal. They don’t believe you will ever sue them for their violations. When the time comes for civil action don’t hesitate. Sue the CA and teach them a lesson. I wish more people would take civil action against CA’s. It would make life easier for all of us.

[Edit by nocredit on Tuesday, March 4, 2003 @ 02:51 PM]

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I'm trying right now to have 'all my ducks in a row' before I proceed with the CA, to ensure that the OC does not merely remove the account and move it to another CA that is licensed etc. in this state to go after the debt (although I do not know at this time whether the CA has acquired or purchased the debt).

Thanks! :D

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