This website is a testimony to the problems Canadian Student Loan borrowers experienced from approximately 1996 to 2008 and until their loans were paid off.

The privatization of the Student Loans system by the Chretien and Martin Liberal governments broke the system and defaulted thousands of borrowers who were trying to pay their loans. There were even stories of suicide due to the harassment of borrowers.

Read the report that I prepared back in 2007 here. Canada Student Loans-The Need for Change Fortunately the new Conservative government at the time revamped the program and fixed the system for new borrowers, but borrowers under the previous program were left with ruined credit and continued harassment from debt collectors.

I call on the Canadian Government to apologize to the borrowers affected by this fiasco and make amends.

Unfortunately the Liberal government is again clobbering the Education system with their changes to International Student Visas. Yes, there's a problem, but instead of a well thought out plan, they have pulled the emergency brake on the train causing a derailment. This has introduced unprecedented instability for both private and public education institutions who serve both international and local students.

Universities have been forced to cancel programs and layoff hundreds if not thousands of full-time and contract instructors.

Again, the Liberal government has messed up the education environment.


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steevz View Drop Down
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    Posted: 11/October/2013 at 4:57am
Hey guys,

Here is my situation.

ARC Account Recovery Corp has been contacting me and telling me that my loan is in collections and I need to take out another loan to pay off my student loan.

So, the loan company I was referred to has a 48% interest rate, so it's ridicules.

My bc student load is for $6668.73 and ARC said I can ONLY make 12 monthly payments to them (which I can't afford), or get another loan from another company which will also give me financial hardship.

I offered $200/month, but she said this is not possible and I have to make a decision today. She claims to be holding back paperwork to goto my employer and start 30% garnishment on my wages.

I requested she send me all of the documents she has on my case by mail for me to review and she express shipped me a 'Financial Report' requesting my financial information, proof of income, previous years tax assessment, and advising when my first payment will be made.

I have to call her back today but I don't know what to say to her. Could someone help me out?

Thanks.
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Points: 1798 		Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 11/October/2013 at 6:14am
The wage garnishment may just be a threatening tactic to create a sense of urgency.  Maybe true, but maybe not. 

This link may help...  http://canadastudentdebt.ca/collectionagencies.asp

How old are the loans? When was your last payment? 

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I finished school in 2008. I haven't made any payments, just income tax being taken.

I read that, sounds like they need a court order to garnish wages, and I haven't heard from anyone except them.

Do they have to accept my payments of $200/month? Or can they make me pay 12 payments only or get another loan to pay them off?
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Points: 1798 		Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 11/October/2013 at 9:59am
They are not supposed to suggest that you get a loan to pay it off. They should accept your payments.  $200 is generous.  Some people here can only afford $50.
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Points: 5996 		Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 11/October/2013 at 5:00pm
Is this a debt owed to the bc government (c/o revenue services of BC), or a bank risk (provincial) owed to CIBC, RBC, or Scotiabank?
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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I honestly can not remember. I tried to get that information from ARC mailed to me, but instead they only mailed me a financial report.

I think it is owed to the BC Government.
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Points: 5996 		Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 12/October/2013 at 6:34am

what do you mean "financial report"? Do you mean an actual statement of account showing your loan history and account history? If so then the identity of the loan provider would be on this document. 

 
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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Points: 8 		Post Options Post Options   Thanks (0) Thanks(0)   Quote steevz Quote  Post ReplyReply Direct Link To This Post Posted: 12/October/2013 at 7:19am
They call it their "financial report". It is forms that they want me to fill out which include all my personal information including income, work contact, how much I'm willing to pay, when, etc.
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Yes, it is best to find out who the debt is owed to. If there is a limitation issue then submitting this form will jeopardize your position in regards to a limitation issue. It is either a bank risk or BC guaranteed loan. ARC has recently been given BC loans from the government to collect.
 
 
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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It is a BC Government student loan, I talked to Amanda at ARC again today.

She told me I have to tell her if I'm getting the loan to pay them off tomorrow, if I don't she will have to send paperwork back to the government start wage garnishment as early as next week.

Is this how it works? OR are these just threats? How can I find out?
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ARC is a very aggressive agency and they are quick to sue people. However, if you are offering payments and they are refusing to accept them only to further pin you in th corner to borrow money at a ridiculous interest rate, that sort of thing can come back to bite them. 
You see, the BC government, like any government, is a purveyor of consumer protection law and service to people troubled by one consumer issue or another. In your case it is quite simple if the interest rate on their recommended financing action is what you say it is (over 40%). Anything over 18% is totally ridiculous. Borrowing money at this rate is financial suicide.  If you feel that you are being forced to do this "or else" then that could also be considered extortion.
 
Someone telling you to pay them money or else they will sue you is, in my opinion, and the opinion of a few attorneys I hang with, not an act of that kind. However, if you are told that you are going to be sued unless you do something that is unreasonable, causation of potential harm of any kind to someone else or yourself, then that is different.
 
Borrowing money from a loan shark type of financing company is not only unreasonable, it could harm you financially and socially. The "threat" made to you in this case is certainly something that that I would call bullying and harrasing. Law enforcement usually calls these types of matters "civil matters" when reported though. Again, we talk about about broken systems.
 
My advice to you is to document everything said to you from this point moving forward, record any further calls with whoever you are speaking with, gather confirmation from him or her that this threat is real, and then report it to the provincial authority.
 
Also, if the loan is aged and youhave not made payment or acknowledged it in accordance with the admission of liability (acknowledgment) terms outlined in the legislation then consider limitation issues.
 
If you would like help you can certainly call on us to assist but you would have to become a client.
 
I hope this helps!
 
 
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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Steevz

Please read up on the issue of Statute Barred Loans... if you have not made a payment or acknowledged the loan in  6 years it may be statute barred.

Here is the forum on that topic:
http://canadastudentdebt.ca/forum_topics.asp?FID=90&title=collection-of-old-stats-barred-loans

You might try a call to the Consumer Protection Association of BC.  Discuss the loan and see if they say its stats barred. From there they might have some advice for you. 

http://www.consumerprotectionbc.ca/blog/item/94-tips_for_negotiating_with_collection_agencies

For more information about debt collection, please visit www.debtrightsbc.ca. If you have an inquiry or complaint regarding a debt collection agency, please visit our “How to make a complaint” page, or contact our Inquiry unit by phone at 1-888-564-9963 or by email at info@consumerprotectionbc.ca.

UNDER NO CIRCUMSTANCES SHOULD YOU PUT ANYTHING IN WRITING TO THE BANK OR THE COLLECTION AGENCY! This could reset the clock and you could lose your stats barred status.

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I spoke with them again today.

She said she is refusing my offer of $200/month, because it's not enough.

It's Revenue Services of British Columbia and they don't have to sue me to garnish my wages, under the Financial Administration Act, section 38.

I told her that either way I'm going to be in financial trouble and she got mad at me, because I'm approved for the ridicules loan and she doesn't understand why I don't take it.

She said she needs me to get back to her today or else she'll send the papers in and wage garnishment with start next week.

Please help!
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Points: 5996 		Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 18/October/2013 at 5:21am
I told you that communicating with them is going to intensify the pressure. THey know that they have you scared.  If you handle this the wrong way you are going to find yourself in a bit of a jam, as we discussed.  The agency is trying hard to make an impression on the government of BC that they are able to collect more than they (the government) can by using their firm.
 
THe dirty pool played by the collector you are talking with is omitting the unlawful activity and behavior from her notelines so she doesn't get into trouble. Meanwhile, she is playing the role of "legal enforcer" without the credentials or professional designation/ It is what collectors do to make easy money for themselves. Remember, they make a percentage of what they recover. Your $200.00 per month payment is only going to net the agency anywhere from $20.00 to $40.00 at most. I cannot see thw BC government paying ARC anymore than 20% commission on recovery.
 
If you do EXACTLY what itold you to do yesterday you will likely fare well. Or, on a scope of work and retainer and we will do it for you.
 
 
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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I posted this before speaking to your yesterday, took a while to be approved I guess.

I am going to give it until Monday, and I will have made a decision on what I am doing. We can communicate through email.

Thanks Johnny!
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Ok. Have a good weekend and don't let the situation ruin it for you. Smile 
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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How did things go for you? I believe I'm dealing with the same pushy collections and sounds like you were getting the same demands I was :(

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Is the below true??  or do they need to have a judgement in place before they can apply a wage attachment?

Originally posted by steevz steevz wrote:

I spoke with them again today.

She said she is refusing my offer of $200/month, because it's not enough.

It's Revenue Services of British Columbia and they don't have to sue me to garnish my wages, under the Financial Administration Act, section 38.

I told her that either way I'm going to be in financial trouble and she got mad at me, because I'm approved for the ridicules loan and she doesn't understand why I don't take it.

She said she needs me to get back to her today or else she'll send the papers in and wage garnishment with start next week.

Please help!
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Points: 5996 		Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 24/October/2013 at 3:31am
The usage of the FAA is common in cases whereas a flat out refusal to pay and comply is there. They just FAA people just because you are in default,
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

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Thanks. I was under the impression that a judgment had to be attained through the process of serving the loan holder. Are you implying that ARC and RSBC doesn't have to get a judgement to assign an attachment to your wages, rather they just have to send a letter to your employer to gaging the wage attachment?
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