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View Full Version : Lawsuit says CIBC cannot put lien on home to settle credit card debt.



TWINCANS
8th November 2011, 02:16
Just received this link which has been forwarded to 50,000 real estate agents in Ontario. The issue is whether CIBC has the right to seize, or put a lien on, a person's real estate to settle their VISA account. Now the point is that the credit card is unsecured debt. That is why their interest rates are highway robbery ie 20% Compounded Daily. A Line of Credit is a secured loan, usually. A regular loan is usually also secured often by real estate.

The idea is: Unsecured Loan = High Interest
Secured Loan = Lower interest

This is going to the Supreme Court of Canada, and the plaintiff needs funds I guess. But it does affect many families because the dismal economy will push many homeowners into defaults of some sort and banks cannot be allowed to plunder in ever more predatory ways.

Nowhere in their credit card agreement does it say that they will go after your real estate. If they can do so, then their high interest rates on credit cards should be disallowed. Can't have it both ways.

http://www.CIBCLawsuit.com/

Lord Sidious
8th November 2011, 08:45
If there is nothing in the agreement to get the card that secures some ''asset'' against the debt, then a court shouldn't attempt to improvise a fix.
If both parties intended to secure property, they would have included that as a term in the contract.
If they did not, then that is outside the terms by choice.
I would believe that a lien in this case is commercial warfare and is unlawful.
However, the individual who has been liened will have a nice remedy when they get to the court.
Equity is my favourite area of law.
I would lien the banks head office and offer to do set off.
When they compensate me, that is.

TWINCANS
9th November 2011, 03:39
Thanks for that. I don't know the person/people personally but i have sent it along to the website's email. Hope it helps.

genevieve
11th May 2013, 00:12
Does anyone know anything about whether there was a change allowing credit card companies to lien a house for nonpayment of credit cards?

I'm in the USA, but if there has been a change in Canada, I would think it would be global.

Thanks for any info you can share.


Peace Love Joy & Harmony,
Genevieve