I live in Ontario Canada and have outstanding student loans from 1998. I am also a discharged bankrupt as of 2002... I know that the student loans are not erased by the bankruptcy. I am dealing with 2 differenct collection agency's. Due to the bankruptcy and now being separated from my husband for almost 2 years with 3 young children at home my only income is my child support, alimony and Child Tax Credit. The collection agency contacted me last week to let me know that the "original holder of the loan" was looking at pulling it back from the collection agency, so he wanted to try to set something up. He wanted to try to either figure out a settlement (to the tune of over $10,000) or possibly a payment schedule or the third option would be for the original holder to take back the debt and take it to court. He gave me a couple of days to think about it and called me back to find out what I wanted to do... I told him that I could pay $50 per month he told me he'd get back to me. He called back today and told me that he had bad news. Not only had the original holder not even considered my request and they were requesting the file back but someone from the gentlemand office had called here yesterday and spoke with my 12yr old and asked if I was home... my son told him no so they asked him if his daddy lived here (not if his daddy was at home or here), and he said that my son said yes (actually my son told me yesterday that someone had called and asked him that and he had said "sometimes"), so he told me that I had better get a lawyer.
So my questions are:
1) Can refuse payment?
2) Can original holder pull back a file from collections after a time (approx. 6 years) and take it to court?
3) Is there a SoL?
4) Can they question/talk to my children?
5) Should I send in a financial statement and separation agreement as well as the amounts that I stated that I could pay?
I have in the past asked them to send me copies of the original loan documents because I would like to have documentation as well as I have tried to explain that yes I may owe them money but when I got my loans it was with the understanding that if I graduated with honors that my loans would be 90% forgiven... but I have been told by both the gov't and collections to try to find information regarding that program... that it will cost me more in the long run than to pay them off

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Originally Posted by frustratedandscared

I live in Ontario Canada and have outstanding student loans from 1998. I am also a discharged bankrupt as of 2002...I know that the student loans are not erased by the bankruptcy. I am dealing with 2 differenct collection agency's. Due to the bankruptcy and now being seperated from my husband for almost 2 years with 3 young children at home my only income is my child support, alimony and Child Tax Credit. The collection agency contacted me last week to let me know that the "original holder of the loan" was looking at pulling it back from the collection agency, so he wanted to try to set something up. He wanted to try to either figure out a settlement (to the tune of over $10,000) or possibly a payment schedule or the third option would be for the original holder to take back the debt and take it to court. He gave me a couple of days to think about it and called me back to find out what I wanted to do...I told him that I could pay $50 per month he told me he'd get back to me. He called back today and told me that he had bad news. Not only had the original holder not even considered my request and they were requesting the file back but someone from the gentlemand office had called here yesterday and spoke with my 12yr old and asked if I was home...my son told him no so they asked him if his daddy lived here (not if his daddy was at home or here), and he said that my son said yes (actually my son told me yesterday that someone had called and asked him that and he had said "sometimes"), so he told me that I had better get a lawyer.
So my questions are:
1) Can refuse payment?
2) Can original holder pull back a file from collections after a time (approx. 6 years) and take it to court?
3) Is there a SoL?
4) Can they question/talk to my children?
5) Should I send in a financial statement and separation agreement as well as the amounts that I stated that I could pay?
I have in the past asked them to send me copies of the original loan documents because I would like to have documentation as well as I have tried to explain that yes I may owe them money but when I got my loans it was with the understanding that if I graduated with honors that my loans would be 90% forgiven....but I have been told by both the gov't and collections to go ahead and try to find information regarding that program....that it will cost me more in the long run than to pay them off

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I read somewhere that the original debt can be given to a Collection Agency, but that collection agency can't sign it off to a 3rd party.




Try this link: http://www.gov.on.ca/MGS/en/ConsProt/STEL02_045978.html

This one:
http://www.canadian-money-advisor.ca...-agencies.html

READ the Collections Agency Act:
http://www.e-laws.gov.on.ca/DBLaws/V...0c14_eV002.htm

PS in answer to your questions:

Send the Collection Agency a letter stating you don't want them to contact you
THEY Won't, see the links I provided above

In the rules re: your rights, it states they can only speak with you, they are not allowed to garnish your wages, nor are they allowed to threaten you
IF THEY HAVE send in a complaint and get CALL DISPLAY, do not answer your phone

Don't give them ANY personal information:
IE: financial statements, work address or phone number

They are only allowed to call you at your place of residence NOT at work
If they are calling your work tell them you have filed and are taking them to court for harassment

READ THE LINKS I PROVIDED ABOVE


GOOOOOOD LUCK!

From what I've read you have already claimed bankruptcy - if you haven't or you know someone in the same situation, Student Loans (both Provincial and Federal) can be included in your bankruptcy claim if the loan is over 10 years old. You may want to look into this because you can claim bankruptcy more than once.

The only reason a collection agency can call your place of work is to verify your employment - this is the only reason. They are not allowed to tell anyone why they are calling, just that they are looking for you (they can leave a message but it cannot reveal any information pertaining to collections). No agency is to disclose any of your information to anyone - they may share your information with government agencies, collection or alternative collection agencies, if appropriate. You might want to tell them that as per the privacy act they can not talk to anyone except you on this/these matters.

1) Can refuse payment? You can refuse to pay, but you are obliged to pay - so legal action can be taken.

2) Can original holder pull back a file from collections after a time (approx. 6 years) and take it to court? They use to be able too, and I believe they still can. If the original loan is sourced out to the collection agency for collection only but has not been sold to someone else it can be recalled - usually it is only sourced out so yes it can be recalled

3) Is there a SoL?
4) Can they question/talk to my children? NO absolutely not

5) Should I send in a financial statement and separation agreement as well as the amounts that I stated that I could pay? This may help you if your loan ever does go to court - it might show that you are/ were acting in good faith & willing to work with them. Send it registered mail and keep a copy of the info you send as well as the registered mail receipt.

I have in the past asked them to send me copies of the original loan documents because I would like to have documentation as well as I have tried to explain that yes I may owe them money but when I got my loans it was with the understanding that if I graduated with honors that my loans would be 90% forgiven... but I have been told by both the gov't and collections to try to find information regarding that program... that it will cost me more in the long run than to pay them off. You should request the copy of your original Student Loan in writing (for that matter all correspondence from you should be made in writing and sent by registered mail). I believe any offers to reduce your loan (at anytime) should be in writing and would be up to you to have/get this information. Try checking with the Student Loan department at the school you went to at the time you applied/receive your loan to see if they have any information about forgiveness.
Good Luck - and put your foot down

1) They cannot refuse payment. You have a common law right to reduce any debt by any amount at any time. However, as he debt is in default and the full amount is due, small payments may not stop them from suing you.

2) Yes. A collection agency is the agent of the student loan creditor. This "agent" relationship can be terminated at any time and the account retrieved. The Government of Canada used collection agencies for a long period but have now recalled the accounts and is using the Canada Revenue Agency to collect the debt.

3) Canada Student Loans have a limitation period of 6 years. Ontario Student Loans have no limitation period. Direct Financing loans with banks have a six year limitation period. The limitation periods are set out in the legislation.

4) The details of your loan are confidential and should not be discussed with spouses / children / others in the absence of you authority to do. This is a prohibited collection practice under the Collection Agencies Act.

5) The student loan creditors have specific forms to report income and expenses / assets and liabilities. Ask for one of these forms and include proof of income.

6) Federal and Provincial student loans have no statutory provision for settlement. You either pay it all or have it discharged in a bankruptcy. The suggestion that agency would take a settlement could mean that the bank still has the loan and they are prepared to make a settlement.

7) You are entitled to copies of all student loan documentation either from the agency or the student loan creditor directly.

8) Your story about the agency seems to be an attempt to manipulate the circumstances for their benefit. You are probably better off with the loans going back to the government.

As you are a discharged bankrupt and as you have ceased to be a full or part time student for 5 years, you are eligible under s. 178 1.1 to make an application to the bankruptcy court in the jurisdiction where the bankruptcy was made to seek hardship relief rendering your student loans subject to your earlier discharge. The court cost for this process is $10.00. The only additional cost is to make the application itself.

Google "take control .. don't be controlled" and read about the process.

I have been in default for 2 years... I paid monthly for 2 years, but when my husband lost his job, I had to default on my loans. Ever since then I have had collectors call and harass me at work and at home. I did tell the collector to stop calling me at work, as I shared an office 6 other people and she was nasty! I even had her on speaker phone so the other people in my office could hear the abuse. She threatened to come and find me, she told me I was a loser, she would garnish my wages etc... After, I told her I had witnesses to her abuse and the members of my office all began to speak to her, she didn't call me again... this was September 2010... HOWEVER, I get paid once a month... the last business day of each month. This month I got paid December 24th because my employer is closed throughout the hoildays. When I went to do my Christmas shopping on Christmas Eve, I had a BIG surprise! My wages had been garnished $825!!
I did receive a letter since from Canada Revenue Agency stating "The Canada Revenue Agency is responsible to collect debts owed to Human Resources and Skills Development Canada. We would like to inform you that a Demand on Third PArty requesting that deductions made of 30% of all monies that are payable to you by your employer was sent to this organization."
So they have given permission to this third party to garnish my wages after only 2 years! The letter is signed by the Collections Contact Officer, who I have called to see if there is anything I can do to reduce this amount, but he is on holidays until January 4th.

Miaco please keep me posted as we are in the same situation. Mail me at [email protected]
We got to stop the fcukers from taking what little we have.

Can any collection agencies garish your tax credit if they have an court judgement order against you. Even if you did not know about the court date.

Your right you can not claim your student loans in a bankruptcy. Now your student loan if it came from osap or a bank, from what I know Osap will try to get you to pay it off, if you did not pay they will take your income tax until they get the money. As far as I know osap dose not get collection agencys to work for them.
1 - you told them you can pay $50. A month and they turn you down that's not right if you end up in court about this you tell the courts that you told them you would pay 50 that will help you a lot I know people with student loans and this happened to them and in court the said that and the court cut half of the claim off so my buddy only had half of his loan to pay off at 50. A month with no interest.
4 - they can not talk to anyone just you.
5 - No don't send them anything to them, they don't want your $50 a month, so you tell them you will not send anything to them until you get a copy of your file. I think by law if you ask for a copy of your file to be sent to you they have to do it. So if you end up in court tell the courts this to that you could not get a copy of your file, it might help you even more in court

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Originally Posted by silversprings

Can any collection agencies garish your tax credit if they have an court judgement order against you. Even if you did not know about the court date.

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No the only way they can do that is when they file in court they have to ask the court if they can go after your income tax under the garishement. Most of the time when people get garishment that is only for work wages.

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Originally Posted by onlyif

No the only way they can do that is when they file in court they have to ask the court if they can go after your income tax under the garishement. most of the time when people get garishment that is only for work wages.

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But you should look in to it in the U.S because I'm in Canada