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needadvice123 
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 Topic: Statute of Limitns: 10+ year old loan
Posted: 25/November/2009 at 1:45pm |
I am writing on behalf of my partner.
Here are a few facts:
-his school loan is from Quebec
-he graduated in 1997
-he has lived in Ontario since 2006
-debt with interest is now close to 60K
He has not been harassed by collectors since the beginning of 2006 when he moved to Ontario and now he recently is getting harassed again- 3 years later.
-His student loan collection debt fell off his credit report 1-2 years ago (assuming it did perhaps in 2007 when it aged 10 years) : we were able to get our 1st house (his credit score increased) since we are expecting our 1st born child in less than 6 weeks.
Over the last few weeks, I did quite a bit of research. Spoke with a trustee company of whom referred me to a lawyer (I have not yet went with this lawyer) and I also spoke with a company that is well known to this website that wanted an extreme amount of money to provide simple verbal advice.
During my own research, this is what I found:
According to the department of justice website regarding the Canadian Student Loans Act, section 19.1 states this:
19.1 (1) Subject to this section and section 19.2, no action or proceedings shall be taken to recover money owing under a guaranteed  student loan more than six years after the day on which the money becomes due and payable."
I am assuming that since this is in the CANADA student loans act that this is federal and not provincial. Therefore, this limitation would indeed have expired for my partner in 2003 which even in 2006 or today, any collection agency has no right to attempy any monetary collection or legal action.
It also mentions:
"Statutory bar
(9) Subject to subsection (7), if the limitation period in respect of a guaranteed student loan expired before the coming into force of this section, no action or proceeding shall be taken to recover money owing under the loan."
So if this is true, if in his case the limitation is expired- or any loan older than 6 six years does it become automatically statute barred?
I simply need to know if in his case that if a collector calls again- am I safe to say that the limitation as expired and they have no right to be calling anymore??
Thanks!
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SolveStudentDebt
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Posted: 02/December/2009 at 10:37am |
If there has been no action taken by your partner or the government of Canada within that prescribed period of time then the Statutory Bar takes hold. You really have to get inside that system and collecvt data in order to expose a limitation issue. You can always assume, but there are tyhings that the govertnment can do that may suspend the limitation period. There are actually all sorts of variables to consider.
If you need help with this, by all means.
Johnny
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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. solvestudentdebt.com
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needadvice123
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Posted: 02/December/2009 at 11:54am |
Thank you Johnny for you answer- very much appreciated! :)
Since 1997 since he graduated, no action has been attempted although he did receive things in the mail in the past a few years and about a month ago that they can 'pursue' action if they did not receive a cheque for close to 60K within 5 business days. But they never once sent a court order.
I am sure soon we will receive another call from this same collection agent ... I will assume for now that my partner's loan is barred and advise them that I am aware of the limitation period and quote them the law if I need to.
For now, we cannot afford too much lawyer wise or to find out if his loan is indeed barred as currently I am on maternity and expecting a child in less than 4 weeks!
Hopefully, the next time they call and I give them this information that they will not call back again!
Thanks again for your answer! :)
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needadvice123
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Posted: 02/December/2009 at 12:09pm |
Now that I think of it- why is it so difficult for someone to know if a loan is barred?
I believe that someone should have the right to know this information about their debt and to find this out in their own means and with no cost.
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SolveStudentDebt
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Posted: 03/December/2009 at 2:31am |
When people are aware of their rights, and are armed with data that serves as a safeguard and defense, the debt recovery systems out there cannot abuse and manipulate. The statute of limitations is a benefit to ther party in which it applies to. However, it is a nemesis to those who it restricts. So, by you having access to this information it handicaps the collection system. You follow?
The system wants to collect money. The financial community does not see the world like you see it, unfortunately.
Lastly, you do not have to hire a lawyer to find this imnformation out. I have a module that navigates you through this, or we can get involved and assist you. It is not expensive by any stretch.
Johnny
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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. solvestudentdebt.com
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Moomin
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Posted: 03/December/2009 at 7:25am |
Thanks to this post, I went and read up on this in the CSL Act. There looks to be a bit of a Catch 22:
Section 19.1 (3) deals with acknowledgement of liability: 19.1 (4) If a borrower acknowledges liability for $ owing, the clock starts ticking on the 6 years again. The acknowledgement takes the form of 1. a written promise to pay; 2. anything written that can be interpreted as a promise to pay or a refusal to pay; 3. a partial payment of the amount owing; and 4. any proceedings under the Bankruptcy and Insolvency Act.
If you do any of these things, the clock starts ticking on the 6 years all over again: 19.1 (5) Any acknowledgement as defined under 19.1 (4) can result in an action or proceedings being brought within 6 years of the acknowledgement.
So what's person to do? This is almost a disincentive to even speak to a bankruptcy trustee. For even if a consumer proposal or bankruptcy is not pursued, the trustee's documentation might be used as a rationale for starting the 6 year clock and open up the possibility of legal action. Or am I being paranoid?
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needadvice123
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Posted: 03/December/2009 at 8:54am |
Moomin: That is EXACTLY what I thought when I read that. I believe if you would have perhaps verbally agreed to this over the phone- this cannot be used in court- hence the 6 years would not restart. An acknowledgement on paper is probably what it means...
If you never sent anything in writing for any payment arrangment nor have u paid 1 cent to them in over 6 years- this should not apply...
I am probably just as paranoid feeling as you ...lol...
Johnny- anyway to have a free discussion as to what a 'cost' could be for finding out if a loan is barred. With a new house, baby and Christmas coming- money is extremely over the head...
If there is any other way I can find out on my own if the loan is barred for free even if it means lots of work- I am also willing to do- u mentioned a module?
Thanks!
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SolveStudentDebt
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Posted: 03/December/2009 at 10:48am |
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Yes, absolutely. I can even navigate you if you find yourself stuck during the process. It is not expensive at all. If you wanted me to do it for you, it still would not be that expensive. However, cost is always an issue.
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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. solvestudentdebt.com
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needadvice123
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Posted: 03/December/2009 at 11:46am |
Great!
How do I go about the 'free' way on my own?
How much can it cost if i get stuck and need your services?
Thanks!
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needadvice123
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Posted: 03/December/2009 at 11:48am |
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BTW Johnny- any thoughts on what Moomin mentioned?
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SolveStudentDebt
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Posted: 04/December/2009 at 7:35am |
Hi Need,
I can send youa link to the module, or you can go on the site and access it. I will navigate you through it if yuou'd like. Write to me and I will work with you on it.
as for Moomin's post, it is pretty clear in the legislation and it exactly how it reads. You see, the old act simply states that once the limitation period has expired, no action or proceedings can be taken - period. So, any repayment of the debt would be considered voluntary to ensure that the government is protected from any violation of law in respect of a limitation issue. In other words, once the debt is barred, it is no longer collectable by any means what so ever, even if a borrower acknowledges it. The new budget implementation act (Bill C 28) was created to tighten things up to allow them (HRSDC) to continue collection efforts based on an acknowledgement after the fact, as described in 19.1, items 1-4 of the act.
You have to look at history. Bankruptcy is one of the reasons why they tightened things up. Bankruptcy is what it is though.
Johnny
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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. solvestudentdebt.com
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mr.o
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Posted: 04/December/2009 at 9:21am |
Are you referring to the "tax lien" module that is on the CFWG site.Is this to somehow remove forever, the tax lien, year after year on a stats barred loan?
I also am curious about my statute status,but I would be amazed if it wasn't stats barred...but I would like to know.
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needadvice123
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Posted: 04/December/2009 at 9:38am |
Sure, please send me the link if possible. I am not sure if you wanted to post it in this forum or if there is a way to send a message directly to me on here.
Thanks!
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SolveStudentDebt
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Posted: 04/December/2009 at 11:13am |
Mr O
No, there is another module that navigates through the maze regarding limitations for Canada student loans, and provides the tools you need. I am making a couple of adjustments to it and will post the access link for you guys. It is totally inexpensive.
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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. solvestudentdebt.com
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Moomin
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Posted: 05/December/2009 at 9:54am |
It's a good idea to look at the provincial/territorial legislation on Limitations for student loans debt. They may differ from the federal limitations for CSL. For Ontario, there is no limitation on student loans, which is my particular problem. Here is a great articvle that summarizes the statute:
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SolveStudentDebt
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Posted: 07/December/2009 at 7:17am |
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The act in Ontario applies to loans that have been written up on or after the coming into force.
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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. solvestudentdebt.com
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needadvice123
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Posted: 07/December/2009 at 7:32am |
Hello Johnny,
(1) Any ETA as to when this module you had mentioned about? I will need to find out in the next couple of days whether or not my partner's loan is barred or not.
(2) Provincial limitations were mentioned- doesnt the CSL act not cover all provinces? What would then be the point of having an act for all of Canada?
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needadvice123
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Posted: 07/December/2009 at 7:36am |
Moomin-
In the link you sent, I did read that at one point. I believe the limitation was 6 years before 2004...But then again, what would then be the purpose of the CSL act.
Basically if this limitation is true for Ontario then the loan would of had to have been older than 6 years when this came into effect in 2004.
In the case for my partner, the loan is from Quebec and he graduated in 1997. Therefore, if the loan would have been from Ontario, it would have been 6 years old in 2003.
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needadvice123
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Posted: 09/December/2009 at 12:01am |
Not sure if Johnny from CFW Group will be updating this module on their website to find out if a school loan is barred as I was needing this information by today...
Anybody else know of a way with no charge if possible to see if a school loan is barred or not?????
Thank you!!!!!
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mr.o
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Posted: 09/December/2009 at 6:26am |
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If this has something to do with the "access to information act", I will probably feel a little slighted. Like getting a pardon,everyone should have the choice to do so without a middle man. I suppose the information is worth something,but I hope this is not what I think it is. It would be ironic,yet typical,to have one last clobber over the head. In all sincerity.
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Statute of Limitns: 10+ year old loan