Thursday, April 8, 2010

Beware the 407 when you are insolvent

I attended a credit counselling meeting today with a lady in the late stages of a successful consumer proposal. She related a story of how she also owed $1,800 in unpaid 407  tolls at the time she entered into her proposal, and wrongly assumed this bill would be incorporated into her proposal payment.

Well over a year later, she received a new bill from the 407 for $7,500 ! This was the amount now owing, according to 407. A combination of tolls, administration fees, and interest charges.

Apparently, the 407 considers itself immune from the insolvency process in Canada - whether you are doing a proposal or even a bankruptcy. The Bankrupcty and Insolvency Act specifies you cannot get away from items like support payments, student loans of a certain vintage, and court fines, but there is no mention of 407 bills being exempt.

However, 407 has huge power in our day to day lives. When our client had gone to buy a plate for a new vehicle, that was when she was told she owed $7,500 - and until that was paid, she was denied a license plate.

I did some research on the internet today, and there are lots of 407 horror stories out there. Here is a link to some one looking into he matter further.

http://www.mto.gov.on.ca/english/pubs/colle407/

Check out our new website at www.doctorcredit.ca or send me an email at rosst@doctorcredit.ca

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