The insurance company of the Truck/semi who hit and damged the rental car should be paying for the towing, I guess.

1>
If the amount goes to collections ur credit history will be irreparably damaged.
Plus collections will keep calling you or any place where u lived to try to recoup the money.

You would have to file for bankruptcy to get collections off ur back..

For a small amount of $1250 it is not worth going through all the hassles. Bankruptcy will end up costing u much more than that amount in terms of high interest rates.

Cancelling the card is not a solution. Ur Visa Claims process allows for some level of help. Since the charge was on ur old Visa card , u should contact ur Visa provider for assistance.

If that does not work my suggestion is to go to small claims court to fight the case.

Sending the case to collections should be ur last resort only if u plan to leave canada..

2>
Insurance companies have access to accidents on your file.

Failing to mention in ur insurance application will result in falsification on ur part and hence when u make a claim they have reasons to disallow ur claim.

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Originally posted by vivek901

This is in continuation with the accident event that happened with me. Discount charged $1250 from my card saying that accident was my fault. I disputed the charge with the credit card company and I got the charge back. I cancelled my card as soon as the amount was credited to prevent any further transactions from Discount. Now today morning Discount called me saying that the fault is mine and they will be going through collections.

Please advise me on how to proceed further if discount threatens me through collections. I am relatively new in Canada and I don't know how does this collections work.

Also I checked my Driver's abstract it shows a clean record. So in the future if I take auto insurance(when I buy a car) do I need to mention about this accident?

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