Print Page | Close Window

Debt Resurfaceing after proposal

Printed From: CanadaStudentDebt.ca
Category: Immediate Attention and Info!
Forum Name: Archived Urgent Help Needed Posts
Forum Description: Read through the files for info..
URL: https://www.canadastudentdebt.ca/forum_posts.asp?TID=6844
Printed Date: 28/March/2024 at 5:34pm
Software Version: Web Wiz Forums 12.07 - https://www.webwizforums.com


Topic: Debt Resurfaceing after proposal
Posted By: alrm_gurl
Subject: Debt Resurfaceing after proposal
Date Posted: 10/March/2014 at 5:22am

I left post-secondary in 1998 and in 2000 settled all outstanding debt with a consumer proposal.

 
Now, 14 years later, I have collection agencies calling me about student loans (CCA and CBV).  I do not answer their calls, respond to the mail, or in any other way acknowledge them.  Not to mention that they are both calling for RBC, which is who I dealt with when I did have loans (at least I don't remember having any other bank involved).
 
I have been all through the forums on the internet and do not understand all the 'risk portion', 'barred', 'put-back', or any other terms that have been thrown around.
 
I want to know how can they call me 14 years later? 
 
Can someone please explain this to me in very plain English?  I am not an idiot - I just need a logical explanation.



Replies:
Posted By: administrator
Date Posted: 10/March/2014 at 4:36pm
Back in those years there were quite a few changes in student loans.... so there were different programs....
- guaranteed bank loans (from 1964-1995),
- risk-shared loans (from 1995-2000)
- national student loan centre direct loans (from 2000 on)
For each period, there was a provincial and federal loan.

If you defaulted on a risk-shared loan, the banks were allowed to sell 5% of their portfolio back to the government, who would then try to collect.  I believe this is what they called a 'put back'.

In 1997 the bankruptcy laws were changed so that student loans were not discharged from bankruptcy   for 10 years after ceasing to be a full time student.  I believe with the changes, proposals did not wipe out the debt even if the proposal was completed.  The law was changed recently to 7 years and 5 years in the case of hardship.

I don't know the full details but basically federal laws state that if a debt is more than six years old and there is no payments made and no acknowledgement of the debt, (and perhaps a few other rules apply) then the debt becomes 'statute barred'  Say you borrow $100 from a friend and then he forgets about it and then 7 years later remembers and tries to collect the debt and interest.  The loan would be statute barred.

Now, your loans may be statute barred, but that doesn't stop RBC and CBV from trying to collect it.

Do not under any circumstances send any letter or acknowledgement of the debt.  I suggest you speak to John at CFWGroup.ca     He can help sort this out.  He does charge fees, but I think it is worth it for what he does.

Also, make sure you don't have any funds in an account at RBC.  They would have a right of 'offset' and could take money out of your account. 

The collection agencies are not to be trusted. Do not under any circumstances act on any advice they give you.... 

Hope this helps...



-------------
Administrator
Mark OMeara
Author of Let Go and Heal: Recovery from Emotional Pain
https://LaughSingWrite.com - http://bit.ly/heal2024


Posted By: alrm_gurl
Date Posted: 11/March/2014 at 5:49am
Thanks Mark.

I don't answer any calls from any collection agency or acknowledge the debt.  They somehow got my cell phone number - but I am not sure from whom as not even my current boss has my number.  I am at least smarter on that now.
 
Another question - is it normal for 2 different agencies to be collecting the same account?  I had a letter re this amount in January of this year and then a letter from another agency dated March of this year. 
 
 
 


Posted By: administrator
Date Posted: 11/March/2014 at 5:02pm
They may have changed agencies since the letter was sent in January.


-------------
Administrator
Mark OMeara
Author of Let Go and Heal: Recovery from Emotional Pain
https://LaughSingWrite.com - http://bit.ly/heal2024


Posted By: tkarmy
Date Posted: 21/March/2014 at 9:32am
Yea I wouldn't touch that with a 10 foot pole... answer no calls, ignore the letters.



Print Page | Close Window

Forum Software by Web Wiz Forums® version 12.07 - https://www.webwizforums.com
Copyright ©2001-2024 Web Wiz Ltd. - https://www.webwiz.net