collector story and financial saga

Hi all,

I'm new to the forum, and I just want to say thank you to everyone who has shared their stories and information, and to the creators/ administrators of the site. You've been a godsend to me during the last week or so, and the information I got from the posts and links and the site itself have enabled me to retain my calm in dealing with the little situation I found myself in.. absolutely invaluable, so thank you so much.

Anyway, I'll briefly tell you my story to date in case it's valuable to anyone else. I declared bankruptcy two years ago because of dizzying credit card debt, accumulated during eleven years of single motherhood during which I've worked part time or from home. This was a very conscious choice and, I feel, a moral one - as my daughter's father died when she was a baby, I knew her only sense of stability would come from me and so I was not at liberty to work long hours. Never on welfare though - I did tutoring and writing/editing from home mostly, but living is expensive and the side effect was this credit card debt, and bankruptcy when it got to be crippling.

Anyway... I also had student loans (about 11 grand) but not dischargeable at the time of the bankrupcy b/c it was less than 10 years. It'll be ten years in 2007 I think, and I think I remember them saying that these could then be discharged under the same bankruptcy if I was still having trouble paying. Of course the 10 year law might change in the meantime too -

Anyway, for a full year after I was out of bankruptcy I didn't hear anything from the student loans people - I kept expecting too, but nothing: had they forgotten? Of course, I could (should) have volunteered something, but I thought I'd leave well enough alone. Then, about a month ago I got a call from the bank, and when I requested a statement on paper rather than arranging things over the phone (which I hate doing) the guy said I couldn't do it that way, and the only paper I'd be getting was a demand for payment in full. Fine, I said, thanked him, and hung up.

I then got a letter from the bank (RBC), collections department, dated January 14. The letter said I had 30 days from the date of the letter to contact them to make payment arrangements. I was still pondering this (okay, procrastinating) and reading up on student debt in the meantime, when I got a call from 'Cathy' at 'Federal Credit' on Feb. 10! Federal Credit is not, as the name implies, the federal gov't; they are a third party collection agency. I checked (anonymous call from my cell phone).

So, I had several conversations with Cathy, which were predictable enough: need the amount in full in one week, blah blah, borrow from friends, get a loan co-signed- we all know the drill. She also - and this is the really disturbing part - filled out a financial asssesment for me, seemingly, based on half-assed estimated replies I made (too stressed to do otherwise) to her questions! After that I stopped answering her calls, but I kept getting them on my answering machine, in and escalating manner: need to phone me tomorrow by noon, need to hear today or we'll have to 'go another way', etc.

But, you see the problem - I'd recieved written assurance from the bank that they would keep my account out of third party collections until 30 days after January 14! And Cathy called me on Feb. 10, and indicated that she'd had my file for a few days (3 or 4) already! Clearly something I had to follow up..

And thanks to you guys, and the Georgia Straight article that came along at such a timely time, I also learned that there's a new BC law stating that you have to receive written notification that your file is in third party collections before they can phone you. And guess what I'd received in the mail - nothing. Still nothing today.

So, in short, here's what I did:

1. Sent a letter to the bank, enclosing a copy of their letter to me with the 30-day thing highlighted, pointing out that they'd sent it to third party about a week too soon, and that I'd received nothing in writing from the agency (citing the law), and saying that I'd stopped taking calls from the agency for that reason, not becasue I wanted to be unco-operative. Also mentioned the 'financial assessment' Cathy had me do over the phone, stating that it's invalid as I was under stress and put on the spot, had no access to documentation, and my income fluctuates quite a lot as I am self-employed.

2. I also sent the bank six post dated cheques, for amounts I can afford (100 - 150) stating that that's all I can afford, I would send additional lump sums if and when I could as I wanted to remedy this as soon as possible, I would send more cheques when all those were deposited, and that depositing any of these cheques would be taken to mean that they accepted those terms. The first cheque is dated March 1, so we shall see. Of course I sent all this registered.

3. THis was the fun part. I happened to be up at 4 am this morning (don't ask) so I decided to leave Cathy a message. I told her (w/out too much detail) that I was in communication with the bank b/c there was a time discrepancy with regard to my file being sent to third party. I also told her they were in violation of BC law (stating the law) because I had received nothing in writing from them, and this means they could not phone me. I said, reassuringly, that I was not going to file a complaint (citing the agency)... YET. I said that I needed the written documentation from them in the mail, and that it had to include Cathy's agent number, my file number, my balance, and the mailing address of the agency. I said that I also needed to be sent a financial assessment form, as the one Cathy filled out for me was totally out of order and invalid. I said that I needed her to send these things by next Friday at the latest (actually, that I needed to get them by then) or I would file a complaint. I said that, furthermore, if she or anyone from the agency called me again before I received these things in the mail, I would hang up immediately and file a complaint. Finally, I stated my intention to send them a written request specifying that all further communication with me must be done in writing, not on the phone, as soon as I go their address. A letter like this has to be obeyed, by the way. If and when I get the address, I will send it, registered.

Then, I told Cathy that I was going to leave the same message with the reception at her agency, just in case she was away from her desk today, becasue I wanted it dealt with as soon as possible. And I did - I phoned the reception and left the same message again, in full detail.

(It's a little disturbing how much fun this was... I mean, am I a good person, really, or not? I think I am - but I definitely have a vengeful streak. I thought of other things to do. I thought of calling Cathy, and maybe several of her co-workers, every night - always reiterating that they cannot, of course, call me!)

Anyway, I don't know how this will pan out, but I wanted to share some of the empowerment I am feeling from turning the tables, and to send out thanks again because it is all because of this forum and site. I feel you've helped me so much already, I would like to send a donation to keep the site going, maybe early next month when I can afford it. Please let me know how I can do that or if donations are needed.

Ironically, though I was telling the truth when I said my income was very fluctuating and not all that high, I am finally getting back on my feet financially - and I'm doing it from home, as a writer, which is just amazing. Getting rid of all the credit cards (okay, forcibly) was the best thing I have ever done. I have a savings account for the first time in twelve years. And okay, I know it may get eaten up by this student loan bullsh*t - and so be it if it is. But, as I'm paying them thousands in interest, I think I will reserve and preserve my right to do it my way as much as I can. The bottom line is that taking care of my daughter comes first. And she's almost a teenager, and she's getting braces this year, and that comes first, too. The poverty mentality sucks. I know I have to behave decently and pay my debt when possible, but I also need to live decently first and foremost - and that means being able to save, and looking after my kid in the manner I want to, and not being afraid of my own phone.

As far as 'financial wellness' goes, though - I will look through your site again and see if I would benefit from some of your services. My credit is shot and I haven't done much to start repairing it yet, and financial wellness sounds really, really good and really far off at the same time. I don't think there's much inherent morality in paying or not paying the big banks and corporations, but on the other hand, if I'm choosing to live in society I should learn how to play by their rules in a way that doesn't come back to shoot me in the foot, shouldn't I?

Anyway, sorry to go on at such length, but I really want to empower others to be empowered if I can, and to take some of the scariness away from the financial hellhole experience. If anyone has any other suggestions about what to do re" the student loans, it would be most appreciated. Love and good luck to everyone on the forum.

malina