no money to pay

suzigirl,

I've been researching this stuff a lot lately as I'm in an almost identical situation.  Collections people have many regulations to which they must adhere.  For example, it is my understanding that they aren't even allowed to suggest that you borrow money to pay back your student loan.  Not from a bank, or a business and not even from friends or family.

If this is so far been just a voice on the phone, tell them to send a letter of credentials and any or all documentation pertaining to the alleged defaulted loan.

Don't worry, they themselves are not empowered to initiate any legal action.  So threats of a bailliff or sherrif pounding on your door any time soon are a scare tactic.  They can only refer the case back to the government or their representatives for legal action and that is only after they can prove they have exhausted all other legal avenues to recover the funds and can safely demonstrate that the CSL client,(you) have have no intention of paying anything.

Next time you speak to them, insist on the written documentation and do not volunteer  any information or promise anything else until that is in your hands!

Reserch this site.  There is a ton of info related to this outside of the forums themselves.

Don't panic.  That's what they want you to do.

Good luck and let me know if you find anything useful.

Nealyman 

 Nealy,

 When you wrote:

 "Don't worry, they themselves are not empowered to initiate any legal action." ...

you should note that if there is an avenue of execution, then they are absolutely empowered to do so. Although the HRDC has specific guidelines for the litigation of Crown debt, collectors are required to refer files back to HRDC for justice IF the situation warrants it.  

 Not all threats are scare tactics. It is important to point this out because if someone trusts that they will not be sued simply by reading that statement, and they in turn are sued ....

 You wrote:

 "For example, it is my understanding that they aren't even allowed to suggest that you borrow money to pay back your student loan.  Not from a bank, or a business and not even from friends or family."

 Collectors are allowed to suggest that a debtor borrow money, most certainly. The guidelines on this collection practice outlined in the third-party PCA directives (and certain Provincial student loan directives) stipulate that a collector can suggest it - IF a) it is determined that the student loan borrower is clearly able and willing to do so, and; b) IF it is solution to the problem and will not cause any financial hardship.

 Suggesting is allowed. Enticing or demanding accompanied by abusive or threatening overtones, unrealistic consequences, or unethical tactics is against policy - and in some cases the law.

 YOu wrote:

 "They can only refer the case back to the government or their representatives for legal action and that is only after they can prove they have exhausted all other legal avenues to recover the funds and can safely demonstrate that the CSL client,(you) have have no intention of paying anything."

 This is for CSL. There is also a checklist that thew collector must follow before the account can be referred. I had posted this checklist in a previous post.

 The real problem with this is that collectors can make it appear that a CSL client is not acting in good faith, and is uncooperative when they really are acting in good faith. This is a problem that has plagued many because there is no real supervision in the third-party sector by the government(s).  If the collector (backed by the agency) says this is how it is, then the government simply says, "OK".

 If a collector wants to lighten the load of accounts in his or her section that are not paying, and the collector feels that it just too much work and a waste of time to make the calls, they simply send them off for justice. This way, they clear some space for other accounts that may be more collectable that will earn them their commission cheque for the month.

nago,

if you need help, we will help.Call John call observer they both have the ability to assist you. if it is about needing money for the help they offer do not worry about it things have a way of working its self out..

Troy

you have friends on here that you do not even know about.

Thanks for all your bits of info - This student loan was so long ago it's hard to remember...I borrowed from the provincial and federal government (I think!!) through the Royal Bank.  Royal Bank is who is trying to collect.  I have received many letters in the mail through this collection agency, and my file had been passed from one person to another - is this a loan that can affect me in court or a wage garnish?  I hate avoiding it because I know I owe, but when you have nothing to give...