Collections Agency say they won't report me if..

[sr_slayerz_]

Hi all, I'm new here!

 

So here's my story.. In July 2010 I signed a two-year gym membership (I know, so stupid of me) when I was just 17. I was a minor (I live in BC, Canada) and I can't be binded to a contract without a parental or guardian signature. After paying the initial two months, I stopped going due to school. They called me a couple times in August 2010 to ask if I was still going and I said "no, can you please cancel it." They said "sure". Obviously they did not cancel it and I was silly for even believing them. For the next 22 months or so, I received no bills regarding outstanding payments whatsoever. On June 7th, 2012 ( a week ago), I received a letter from the collections agency "Credit Bureau of Canada Collections" which states the following:

 

"Credit Bureau of Canada Collections" is the duly authorized agent acting on behalf of ____ GYM. Your account has been placed with our office for collection. Payment is required within ten days.

 

If you are unable to pay this account within ten days, you must contact our office immediately. This account may be reported to Equifax-Canada and Trans Union bureaus.

 

The date of this bill was May 30, so the "ten day" period is over. However, when I called the collections agency, they say that if I paid by next Monday (June 18), then they would NOT report it to the credit bureau. I asked if they could confirm this by mailing me that statement in writing. They said they couldn't do that, but the release form would say it. I checked my Equifax credit report today and there is no collections account on there. When I talked to the Golds representatives, they said that they are finding the contracts and will forward it to me and the collections agency. The gym also said the collections agency knows whats going on and have already "frozen" our accounts. The gym also said that even if I AM liable for it and pay the gym/collections agency ASAP, the gym has the "authority" to remove the account from collections and therefore not effect my credit. The gym also showed me a list of people that got "taken off collections". The people at collections said they are not aware of the situation and I must pay by Monday. Right now I'm just waiting for my contract and it might take a week to confirm if I was liable due to my age.

 

1. What should I do now?

 

2. Does the gym actually have the "power" to take me off the list that would be sent to the credit bureau?

 

3. If I AM liable for the debt, should I pay the $1,200 or not (to who?)? Will the DOFD be from August 2010, therefore it will be off my account in four more years?

 

Thank you everyone!

[Fixin It Up]

I"m guessing the post in the other forum saying that the gym acknowledged that you don't owe the debt is newer than this post.

 

In any case, as of September this year (2 years after date of last payment/default), the collection agency can't collect on the debt even if they take you to court. If you do want to pay it, them saying "The release will say that we won't report it" means squat. Don't trust them and get it in writing BEFORE sending the money.

Better yet, send them registered mail saying that if you "owe" the debt to take you to court. Assuming you were under 18 at your last payment, they do not have any legal grounds to sue you under anyway, thus no legal collection.