Urgent response needed

Urgent response needed, please! My other student loan is at risk to become in default! I have read the forums at CanadaStudentDebt.ca and found them helpful, however my case will definitely need an expert advice from a member like Johnny, Administrator(Mark), Poly, etc.

 I graduated in 2000 and now own $33K (combined CSL and OSL).
Due to the accident I suffered in 2000, I was out of work for some time and then was able  to maintain only a part time employment. Since October 2004 I am unemployed mainly
due to health problems.

CLS: I was on monthly graduated repayment schedule, but since November 2004 the monthly payments are past due. I received Notice of Claim from NCO Financial services, Inc. dated Nov. 25, 2004.  The letter stated that my account has been assigned to NCO for immediate collection and that "balance past due: $" and "this payment is seriously overdue."

Since I see the following discrepancy in the very first letter from the CA their statements must be validated and possibly the transfer of my account to the third party could be deemed not legitimate:
I did not receive any warning from the Bank regarding their intention to assign my loan to a CA, thus not having chance to resolve the matter timely.
I am on a monthly payment schedule  and should probably have a chance to make payment at least up to the end of the month (my last payment was done on Oct. 4th and on Nov.25th the Notice of Claim by CA was issued).
The amount stated in the Notice of Claim from CA exceeds the amount from my records for more than $1,150 with no explanation.
I prefer to stay away from the CA and to solve a matter with the Bank (creditor).

I have already a bad experience with mismanagement of my loan by RBC Student Loan Department in year 2004. I was unable to deposit monthly payments at local RBC branch and was told by the tellers that "loan is written off." After the several calls and faxing the
written requests, I was able to receive a letter from RBC Credit management and Recoveries in the March 2004.  The letter acknowledged that my "loan was recently assigned to 3rd party collections, however this was done in error by Royal Bank". After that due to finacial hardship I was not yet able to bring my account current and back to good standing, thus I am not eligible for the Interest Relief. 
Is it possible to argue my CSL transfer to CA and to bring my account back to  the Bank?
Also, I want that all communication with the Bank be in writing.
And finally is it possible to temporary postpone or reduce my monthly payments without  futher complicating the case?

Thank you all ahead. Sincerely, Rura.

The intrest on a defaulted student loan is prime + a couple of percent I think...it is a rate the bank sets, not the C.A.  That in its self is perfectly legitimate. 

I've never dealt with NCO but I seriously doubt they want to rehabilitate you.  They will likely try to get around even settling for less.  If you do choose to deal with them by phone you are likely in for a long fight.

I'd think about talking to johnny.

Good luck.

Whereto and kwelmm! Thank you guys for encouragment!

I did not try to talk to the bank about CSL, since i have had an experience when my account was sent by error to another collection agency in early 2004. It took me 2-3 weeks calling and faxing letters to the Student Loan Department at RBC before they pulled my account back from the CA. I was demanding of justice (that time I was working), but now I really need some on who can help stratigically. You are wright we have Johnny. I have sent him(CFW group) two e-mails with more detailed info about my situation and called twice to his/company secretary/reception. I definetly let you know guys how the things will develop. Rura.  

Rura...with your CSL from march to oct. 2004 regarding the interest being written off--Is this info. from the CA or the bank or HRDC??  I'm curious because I have not heard of interest not accruing---that is very interesting!!