i don’t know what to do... please help

Hi, I am so glad I could find this website.

I really need someone else¡¯s help..

I just graduated from college last year and I had  two different loans from royal bank and NASLC.

I didn¡¯t have any problem with bank because I always contact with them and negotiate to make a payment.

But I couldn¡¯t afford to make both payments at a time so I applied  interest relief program for another loan.

I reapplied IR for second 6 month and I believed there was no problem with that. On November, I called NASLC to apply IR again but they said my osap file has been placed to governmentcollection. I was very surprised. The reason was I had to make a payment in arrears in order to apply IR

And they said they sent me the letter about this matter. But I haven¡¯t got any letter from NASLC. After few weeks, I¡¯ve got the letter from CBCL and they want me to pay $2,420 long overdue account. I thought this was just overdue account and  if I pay this loan, I might apply IR again.

So I paid off with my husband¡¯s credit card.

After that, I¡¯ve been looking for my osap file and finally I discovered in December that my debt was with a collection agency , collectcorp.

Now. they¡¯ve been calling several times to force me to borrow money from family or bank.

In addition, one of agent is very rude and even yelling me.

But , my father also has a mortgage he has to pay and no one can¡¯t help me right now.

I  owe them $17,000 currently and  I filled out a financial questionnaire and sent them by registered mail. I told them i will make effort to pay $100 every month.But they don¡¯t accept my payment, and keep asking me pay at least half of the loan I owe.

I

can¡¯t find job right now because I am pregnant and my  husband¡¯s income can¡¯t not cover all of this matter.

I asked them send my file back to the HRDC if they can¡¯t negotiate with me.

But they said it¡¯s almost impossible!

I really don¡¯t know what to do right now¡¦ please help¡¦

 Kwelmm,

 You wrote:

 "Welcome to the site  .  Your effort to pay a $100 month has to be accepted.  The collection agent can not refuse any payment no matter how large or small."

 Careful with giving this type of advice....

 A collector does not have to accept the offer to repay monthly when it involves the bank risk/shared portions, or the Provincial guaranteed loans. The Federal government stipulates that no payment shall be refused, however, the goal is to collect a minimum of 4% of the principle amount borrowed on a monthly basis UNLESS the borrower can substantiate his or her inability to do so. The requirement is that a borrower MUST - WITHOUT QUESTION submit a financial statement and dsclosure to show visible proof or evidence that the amount proposed is the most that can be paid out on a monthly basis. If the borrower refuses to submit a financial statement, then efforts to collect the debt will continue.

 The Crown looks for one thing - first and foremost - and that is to get you to pay 3% of the principle amount you borrowed. If you cannot do that, then you have to prove your inability to do so. If you refuse, then you are passed off as non-compliant which will certainly place you at further risk if a demand for compliance is not adhered to.

 I see alot of postings on this site with advice referencing the refusal or apprehension to submit a financial statement to the crown. This will cause people more grief in the long-term. People also say in certain postings .."give collectors nothing to use against you, or give them nothing that will make you vulnerable ...". The submission of a financial statement is a mandate (urgent requirement) set by the Crown. Those who refuse to follow mandates are at risk of worse things.

 As for financial statements... there is a correct way to file them, and an incorrect way to file them. When they are filed correctly, there are no windows open for a collector to manipulate, press, or use against you.

 Your last statement:

 "As for what to do--make whatever payment you can monthly without starving yourself.  Don't give the nasty collectors a reason to put a comment on your file as non-compliant."

 ..Please try to understand what I have written.

 Johnny

John,

for my sake / peace of mind,

the collection company cannot refuse the payment period. But if you do not provide proof (POI) that you fesably cannot pay the min 3% of pricipal they will consider this non-compliance. so once you justify the lessor payment amount (POI) of say 2% of balance then you are of the hook for non compliance.

if this the case i have been giving some not so accurate advise, thanks for clearing it up.

ps if you need  a wheel barrel i will lend you mine anytime.... but Im not helpin to fill it with snow...lol

Happy New Year everyone

Troy

thanks John, its clear as mud now

kwelmm, dont feel to bad i have been mis informing people for over a year now too!!!

Unfortuneately, I get the feeling that the debtor is viewed as non-compliant until proven otherwise!!  It seems that one can send in every documentation needed to substantiate inability to pay and one is still coined non-compliant.  Like you said, Johnny, there is MUCH STIGMA attached to student loans!

Hopefully, one day..........some changes can be made to the whole student loans program...Until then--sweet dreams and happy thoughts like Poly Anna (the movie--).

Happy New Year to all!!!!!!   

Thanks Johnny.

That's what I figured.  I know all about their talk and false statements and I know they play the game so they get the full payment right away.  I never planned not to pay back the money, it's just that I payed off the provincial portion right away and now there's no way I can pay the federal portion too.  So I arranged for the monthly payments.  Got no choice.

 I guess, in some cases, it can be better described as pseudologia fantastica, but not so much as a syndrome, rather it is a behavior that is driven by the thirst for power and control that will prompt people to do what they say.

 Johnny  

 Pseudology is a business psychology in most financial-related businesses.