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How to approach old debt, with direction

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carbonr34 View Drop Down
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    Posted: 28/December/2017 at 4:29pm
Hello, I've read a handful of forum threads and would want to get feedback, this thread was by far the most similar to my predicament: LINK


I'm looking to file my taxes, pay debts, and just move on with my life. The above link showcases success and useful banter between Johnny and another member.

First off I'm in Ontario, and after pulling both Equifax and TransU (this past week), I left school in spring 2009 FYI
--> Equifax/TransU lists my provincial portion @ $7,300 w/ ARO
--> TransU alone list GOVERNMENT STUDENT LOAN with the last payment date of September 1, 2009, but listed as transferred and current balance $0.

I called NSLSC today to attempt bringing things into rehab, and was provided contact info that only the Federal portion can be rehab'd, I knew this going in.

After calling the CRA Collection # provided by NSLSC to inquire, the CRA Collection agent advised my loan had been written-off as of January 1, 2015 and no balance is due. He mentioned that his script calls to trick me into paying to acknowledge the debt, but says if you don't see it listed as active on your report just move on with it and count yourself lucky. he advised paying off the provincial debt as it is in collections, but he had no record or information about that account to help, I have info anyways but thought I'd ask. He wouldn't give a clear answer as to if the debt will ever be removed, versus "entombed" as Johnny has said in the past, but clarified no legal action, and wage garnishments will be taken against me as I am past the legal limit.

I understand why I don't see it on equifax (6 years limit), TransU is 20 years for non-derogatory and underwriters who are smart and know the meaning, so just a waiting game.

I am curious to know if me calling did anything to activate this, or me paying of the provincial portion will have any negative affect?



Johnny posted in the past:
"The following is an acknowledgment, or admission of liability:"

(a) a written promise to pay the money owing, signed by the borrower or his or her agent or other representative;

b) a written acknowledgment of the money owing, signed by the borrower or his or her agent or other representative, whether or not a promise to pay can be implied from it and whether or not it contains a refusal to pay;

(c) a part payment by the borrower or his or her agent or other representative of any money owing; or

(d) any acknowledgment of the money owing made by the borrower, his or her agent or other representative or the trustee or administrator in the course of proceedings under the Bankruptcy and Insolvency Act or any other legislation dealing with the payment of debts.

> My concern lies with (d), is this 'any acknowledgement' including me calling, or is (d) referring to as a whole only to proceedings through banko etc.
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Johnny View Drop Down
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Post Options Post Options   Thanks (1) Thanks(1)   Quote Johnny Quote  Post ReplyReply Direct Link To This Post Posted: 02/January/2018 at 7:26am
Happy New Year

If you compare an Equifax report to TU, you will likely see that anything concerning the federal loan has dropped off in the case of a limitation issue. Equifax does not harbor information on debt that is legally unrecoverable. Consult with the consumer reporting government body in Ontario concerning the reporting of debt past it's limitation issue. Bear in mind, the Ontario loan will remain on record until it is paid. In your case, there is no limitation that binds the province to recover the provincial share. 

Acknowledgement is something that requires a written instrument or payment on your part. That pertains to the 4 actions outlined under what constitutes acknowledgment in the limitation law that applies to Canada student loans. 

When a Canada student loan is statute barred, it is written off. Done. You will never be pursued for it unless you decide later down the road that you want to pay it. The government is not just allowed to accept money from you after limitations. The government will require you to state that you are voluntarily paying money to them for a loan that is no longer recoverable, and that you agree that there has been no engagement by the Crown, or attempt to collect. The government will make it so that if you decide to pay any money you are doing so voluntarily, and not through any recovery means. This is to protect them from you should you claim that they influenced you or pinned you in any manner. 

Limitation Issues and Taking Out New Student Loans 

If you have a student loan that is written off, statute barred, and you want to re-enter the Canada Student Loans Program and be approved for more loans, you will be rejected. The CSLP will not grant and further loans to someone in this case. This is a safeguard policy to the program. 

It is the government way of saying 'we will not give you any more money' because of you did not pay the previous. They will not guarantee you further funding even f you decide to pay the old. It is a gambit.  

Rehabilitation of a Statute Barred CSL 

As i described above, proper steps have to be taken by you and the government to rehabilitate a loan that is written off, statute barred. If you decide at a later date that you want to repay it, first, you will have to demonstrate that you are doing so on a voluntary basis, and that you are not being pursued, coerced, or influenced in any way by the government to do so.  

Hope this helps. 



The Canadian Financial Wellness Group (CFWG)



www.cfwgroup.ca
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carbonr34 View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote carbonr34 Quote  Post ReplyReply Direct Link To This Post Posted: 02/January/2018 at 11:29am
Amazing post, thank you kindly for the clarity Johnny!

You wouldn't happen to have an opinion on how to approach the PROVINCIAL portion and removing it from my credit report after paying it in full. My question to the community (and Johnny), is it possible or is their a more efficient route.

I actually did make a payment in September 2009 by being fear mongered, and not knowing better by borrowing some cash from a friend and making a direct deposit into ARO's CIBC account. I have not done anything since however, moved, and with the move lost most of my documentation of that transaction. Would I be able to gather anything from ARO directly, they would have that payment posted I would under the same reference number possibly?

My theory from what I have read is that if I can prove DOLA/delinquency from 'my' actual last activity in 2009 I can get it scrubbed by opening a claim with TU and Equifax for ARO to prove from their end within 30 days that i actually did something in 2015 as they have reported on my report. Most collection agencies just keep updating it from their by promoting phantom activity since most people will just remain sheepish and not dig too deep until they get some sucker to pay.

All the best in the new year to you!


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Post Options Post Options   Thanks (0) Thanks(0)   Quote Johnny Quote  Post ReplyReply Direct Link To This Post Posted: 02/January/2018 at 7:57pm
If you are serious about paying it out and want to have them remove it, all you can do is ask them. of you want me to mediate this, i can certainly do it. It won't take a lot of time and won't be expensive. ARO is a reasonable agency with a lot of good people. Once a relationship is established you get food results. I can be your voice in that regard and it won;t take longer than an hour of time in total. 

Any agency will want to do business with you if you are offering money. That is their business. But, if you want the best for you and set some conditions, that has to be done very carefully. 

Just sayin.  
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Johnny Quote  Post ReplyReply Direct Link To This Post Posted: 02/January/2018 at 7:58pm
good results, not food results. LOL

Autocrack. It's why I have crust issues. 
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