Saturday, November 24, 2012
Letter of “Financial Hardship” (as requested by Scotiabank National Student Loan Centre. )
Yesterday, Friday, November 23, 2012, Scotiabank student loans withdrew $500 from our bank account without our knowledge or authorization. This is the third time this year.
Our family consists of my husband, myself and our four children, ages 3-11. My husband works full time Monday to Friday and I work part time evenings (Mon, Fri, Sat) as to work around my husband’s schedule since daycare costs are too expensive, even subsidized. (Subsidized would cost about $450 per week for one full time, one part time and before and after care for the older ones).
The first time, in May 2012, they withdrew $700 three days before rent was due, without any warning. All it said on my account was “loan payment”. I spent the majority of my day on the phone with my bank trying to figure out who took this amount of money and why. After the bank traced the transit number of the account that withdrew it, it was discovered that it was Scotiabank student loan centre. It was for my old student loan. My husband and I both have student loans from 1998. We used to pay them but there was a time when finances got really rough and we couldn’t afford to pay them anymore. The economy has not improved since. Pays may have increased since then, but so has the cost of living. I asked how someone can just go into your bank account and withdraw money without authorization or notification. I called my MPP and they said there was nothing they could do about it either. I wanted to know how this could happen! I wasn’t very happy hearing from my branch that basically when it came to the government, I have no security of my funds, and the MPP confirmed that. Apparently, because it is a federal loan, the government may enter your account and take money as they see fit. They had my account number from when we used to pay our student loans so that is how they have access. We have always had the same bank account. My branch said it was too difficult to reverse the payment because the government can put a stop to the reversal. I contacted student loans in tears asking how I was supposed to pay my rent because the $700 they withdrew was the majority of my rent payment. After pleading with them for much of my afternoon (and even offering to cash in my RRSP’s, if they would take a settlement offer, if they could just put back my rent money) they said they would put in a proposal for a monthly payment plan and see from there. The next day, I called them as instructed, after noon, and they said if I agreed to pay $70.40 per month for a year (then it would be reviewed again) then they would return the balance from the $700 into my bank account. I was desperate for my rent money so I agreed. By 5pm the following day the money was back in my account.
The second time, in July, they withdrew $500 from our account, once again without warning or authorization. I was confused as my scheduled payments had come out (June and July) without an issue. After contacting my branch, and them doing more investigating, it was found out that THIS time it was for my husband’s loan. Once again, I was back and forth with student loans. This time it was a little more difficult as, since it was for his loan, I had to go through a long process to get access to deal with his account on his behalf since he was working during their office hours. This took a couple days. He had to fax permission, then, apparently it takes 2 days for it to get from the fax department to the processing department. Since it was not right at the end of the month, but the 20th, when this happened, they didn’t see the urgency of us needing this money back immediately. I asked them who has $500 to just give away at ANY time of the month? Once again we had to submit a proposal. I told them I would submit $25 per month since they were already taking a $70 a month payment from me that we really couldn’t afford. I called them back for the next two days. Finally, they told me that my proposal was refused and that they wanted a minimum payment of $300 since his loan was larger than mine. I obviously couldn’t agree to that proposal and as a result, we never were returned that $500.
Now it’s November and it has happened again. This time it wasn’t just the rent money but Christmas money as well. Also, my youngest has a birthday coming up in two weeks. After the withdrawal of $500, there is $1235 left in the account. The money coming out is as follows:
· Rent (Dec 1) $975
· Oil (furnace) $220 (due before Nov. 30)
· RRSP contribution $100 ($50 every Monday)
· Distributel (Dec 4) $26
The next pay period is not for 2 weeks. My husband’s pay literally went in the account Thursday, and they took out the money Friday. I only just got paid last night and it’s just over $400. Basically, that leaves us a grand total of around $314 to last us for food and gas and any miscellaneous that may come up for the next two weeks, leaving no spare cash for Christmas or birthday presents. $500 any time of the year for most people is difficult, but this time of year is absolutely heartless.
The bills due during the next pay are as follows:
· Insurance (home and auto) $261.13 (Dec 15)
· Life Insurance $82.80 (Dec 15)
· Phone/Tv/Cell/Internet $350 (approx)
· Van payment $300 (Dec 11)
· Hydro $446.63
· RRSP $100 ($50 every Monday)
Total: $1540.56
Hopefully his pay is around $1600 and that will just cover our bills. (as of January his take home pay will be less as he will have to start paying CPP and EI again) That leaves my pay of approximately $400 to cover food and gas for another two weeks. That $500 withdrawal was pretty much the extent of our Christmas funds.
I am asking that Student Loans return the $500 to our bank account and accept the $25 per month proposal. We have never denied that we have loans, we just don’t have the funds to pay the amounts towards them that you are requesting.
I am expected to give a breakdown to prove financial hardship to prove we can’t afford a minimum payment of $300 per month and that we actually NEED the $500 withdrawn from our account. Here it is:
Monthly expenses:
· Rent (1st) $975
· Oil furnace (before end of month) $220
· Hydro $450
· Phone/TV/Cell/Internet $350
· Van (11th) $300
· Insurance – home and auto (15th) $261.13
· Life Insurance (15th) $82.80
· RRSP ($50 every Monday) $200
· Distributel (4th) $26
· Student Loan (20th) $70.40
Total: $2935.33
Miscellaneous but necessary:
· Gas $90-$120 per week - $360-$480 per month
· Food $150 per week (family of 6!!!! So thats being cheap) $600 per month
Total: $1080
Income:
· Husband $1400 biweekly - $2800 per month
· Me $400 biweekly - $800 per month
· Child Tax benefit (including UCCB) $611 per month (no GST/HST etc)
Total income: $4211 per month
Summary: Total income $4211 – Total expenses $4015.33 = $195.67 left over for the month!!
Of course with 4 kids there are school events, meds when they are sick, birthday, Christmas... We don’t have $300 extra per month to put towards a payment. We don’t really even have the $70 I am paying or the $25 I proposed for my husband’s loan.
I believe this sums it up. Hopefully it will be enough.
Sincerely, Our Family
Now what? Need resources and info please
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