My 1st CBCL

Hello,

I finally made conact with CBCL today. I've been on social assistance for health reasons and am now currently looking for work. I tried to make some sort of small payment with them but they laughed. The other collection agencies that I've been dealing with as my Canada and Alberta student loans have been diveded into 4 loans, have been willing to work with me. I live with my mom and pay rent. CBCL stated that I could have my mom co-sign a loan for me to repay and I said that wasn't an option. My mom clearly stated that. They weren't listening to me and kept on pushing that. They then stated that I wasn't paying rent because I live with my mom and that her house is worth half a million, try not even half that.

My question is... they said that they could take my social services money away since it is government money and since my loans are government, why should the government be paying me money when I owe them money. I am in this situation because I've been on limited income and when I find a job I would like to pay my loans back. However CAN THEY PREVENT ME from getting gov't assistance when I need it until I can get work?

Please help!

Thank you!

Thank you! That is what I needed to hear! I've been so stressed out by all of this as it is. I didn't need this today. I did offer to pay a little something but she said she wouldn't accept it and would even send a letter.

Sigh... with a bit of relief

My wife had some issues in the past with some collection agencies... they all work the same way, they call you early in the morning while you are not really in good shape to argue and start yelling at you, threatening you and other kind of intimidation.

After a few months we were sick of it and decided to see a lawyer.  He said that the bank considered that money lost for a long time and they were not concerned about it anymore.  However, the collection agency is there only to make you pay even 1 penny.  According to the law, they have 5 years to make you pay if it's a student loan and 2 years if it's not.  The catch is that the countdown is reset everytime you pay that one single penny.

The lawyer sent them a letter ordering them to communicate with us in written letter ONLY, as it is illegal to collect money via phone without written document on the side.  He also said that if we ever receive any letters from them, to throw it at the garbage.  That it would all be over after some time.  The worst thing to do would be to send them money as they would be ok for another 5 years.

And you know what... it worked.  Been 6 years now and we don't hear about it anymore.  As the lawyer said, you might have a bad credit if you don't pay, but you already have a bad credit if your file is on collection.

I've been unemployed for a few months now and had problems paying my Visa credit card.  Last week, CBCL started calling me and calling my boss...  They are only claiming 300$ but they still threaten to sue me. (YEAH RIGHT)  I offered them 50$ per month for 6 months, they refused, saying that they would send the file back to Visa with the note "REFUSE TO PAY".  I called Visa and they said the file was no longer in their hand, and I seriously doubt that VISA will sue me for 300$.

I'm just about to block CBCL's phone number and report them to BELL as being harassing call.

chaosways

chaosways, if what your lawyer said is true i think you just relieved my stress level about 800%.

i cant really afford to pay anything on my sl's, i was prepared to give them 10 bucks a month like whereto? suggested to keep them off my back but recently had a trustee tell me i was 'creditor proof' since i wasn't working and that i should just ignore them totally until i am working and can repay my debt (and he suggested this knowing it meant i would opt NOT to retain his services so i'm hoping he was being honest and not trying to get rid of me).  bankruptcy wasn't really an option for me since i have no income no one can garnish my wages and i have no assets so no one in their right mind would try to sue me.

i wont be able to work for 3-5 years anyways - if i can work at all since my health has been deteriorating, so if the collectoin agency only has 5 years to try and clear my debt before they trash my file, i can live with my bad credit rating.

all in all the more knowledge i get the more confused i get.

johnny, 2laural, a little clarification here if you read this please please please i know you are busy people.  am i better off to ignore them totally or pay them 10 bucks a month ??  keep in mind i wont be able to work for at least 3 years  until my daughter is in school.

confused in the bush

Hi Chaosways,

Thank you for your input with your experience. If you don't pay anything and ignore them can they not take you to court and hassle you for not complying to pay back your student loan after 6 months? If you have no assets and no job, then it's like trying to get blood from a stone. I've been dealing with health issues on and off for many years and my income has been little for many of those years.

When my loans were still at the Royal Bank, the person I spoke with told me that the back gets 80 cents on the dollar so I gather that the collection agency only gets 20 percent. What bites me is that my Alberta loan and Canada loan has been split into 2 , which means I am dealing with 3 collection agencies at the moment. 1 is with Allied International, another Nordon and now 2 of them with CBCL. CBCL is indeed very nasty.  

This is confusing because I cannot afford legal counsel. I am fortunate to have found this site and forum because I would have been more stressed and at a loss.

This is a BIG stress...

 Anything you pay towards a student loan is applied to interest first - then principle. This is yet one of the reasons why people are having such a difficult time digging themselves out of the pit.

 The commission rates for student loans vary between 17.5 % and 20%. For instance, the CSLP gives 17.5% (commission) on every dollar colelcted. The bank risk loans all tend to give a rate of 18 or 20% - depending on the lender; ie CIBC student loans are 18% and  Royal bank student loans are 18%. The Provinces that actually use colelctiona gencies pay an average of 20%. Some provinces do not actually use collection agencies which is a good thing, such as Ministry of PEI, Government of Newfoundland/Labrador, Service Nova Scotia, Province of Manitoba.

 Information is power, correct. Not telling anything can lead to trouble. Telling just enough that only applies to the matter is sufficient. Remember Java, with Crown guaranteed loans, information MUST be supplied when requested. Otherwisae, it can lead to complications for a borrower int he event that a situation would warrant some form of enforcement.   

 That is the reality of giving "too much" information. Unfortunately, those who do fall for the ever so talked about "fear installation" tactics administered by third-party collectors tend to be so scared of detailed consequences(although in most cases mere empty rhetoric); that they blurt out to every demand.

 Collectors will ask where you mortgage is. If you don't have one, say you don't have one. If you do, say it is at a bank. If they ask which one, tell them to issue a financial statement and you will complete it within the guidlines and directives that apply to that specific debt. 

Metaphorically speaking, I think of people dealing with collection agencies and their collectors like palying baseball. They have the good pitchers but they can't hit worth beans. People can learn to hit whatever they throw their way. That is where empowerment comes into the equation. Remember, collectors will toss whatever junk they can muster up to get what they want. Learn to pinch hit. I hope this makes some sense.  

Opal, you have every right to record any conversation you are a part of.

I'd go ahead and tape the abuse. Play it back for the collector. Then file a complaint.

Thanks Java Man!

:)