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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juhl View Drop Down
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Joined: 28/January/2005
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    Posted: 28/January/2005 at 4:55pm
It appears I have had my account garnished by a collection agency without judgement or warning (completely illegally, otherwords)  I'm having a "discussion" with the manager tomorrow and hoping to put the fear of god into him.  Any idea on what the penalty is for illegal garnishment?
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Points: 792 		Post Options Post Options   Thanks (0) Thanks(0)   Quote momof2 Quote  Post ReplyReply Direct Link To This Post Posted: 28/January/2005 at 5:14pm
was it the collection agency or the original lender that has garnished your bank account ?  is this the same account your student loan monies were originally deposited to ?  have you previously authorized the CA access to your account  - ie paid them by cheque ?  answer these questions and it will help determine exactly what has happened and what your best course of action will be.
professionals built the titanic but amateurs built the ark...
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juhl View Drop Down
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Points: 6 		Post Options Post Options   Thanks (0) Thanks(0)   Quote juhl Quote  Post ReplyReply Direct Link To This Post Posted: 28/January/2005 at 5:30pm

It was the original lender that garnished it and I had payed them by cheque at one point, so they were previously authorized access.  The account was one into which my loans were deposited, yes.

 
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administrator View Drop Down
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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: 28/January/2005 at 8:30pm
First of all change banks quickly... there are posts about the fact that banks can go into accounts where the loans were deposited...

Run to another bank immediately!
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juhl View Drop Down
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Points: 6 		Post Options Post Options   Thanks (0) Thanks(0)   Quote juhl Quote  Post ReplyReply Direct Link To This Post Posted: 29/January/2005 at 4:55am

Check.  However, it wasn't the bank who accessed the account, but the creditor.  So if the banks CAN go into accounts, does that meant they're legally entitled to?
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juhl View Drop Down
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Points: 6 		Post Options Post Options   Thanks (0) Thanks(0)   Quote juhl Quote  Post ReplyReply Direct Link To This Post Posted: 29/January/2005 at 4:59am

I know that when you sign up for an account the bank is entitled to immediate repayment if you owe them money, such as in cases of overdraft, or NSF cheques.  But is it legal for a creditor to access your account and take funds without your permission?  Without a court order for garnishment?

Also, alternate payment arrangements had already been made an accepted by them.  I signed on it.
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Points: 792 		Post Options Post Options   Thanks (0) Thanks(0)   Quote momof2 Quote  Post ReplyReply Direct Link To This Post Posted: 29/January/2005 at 5:11am

juhl

somewhere in the fine print of your loan contract they gave themselves the "right" to recoup their money as you agreed to pay them.  this is not the first time this has happened and it will not be the last.  legal ?  you signed on the dotted line when you took your loan money agreeing to repay them.  by keeping the same bank, you accidently gave them access to recover their money.  close the account first thing monday morning.  i mean first thing.  ask your bank to conduct an investigation into where your money went - even though you know where it is, find out how it happened and make it clear you did not authorize the withdrawl.  then i would contact your original lender and inquire as to why they felt the need to help themselves to your money if you had a payment arrangement in place. 
professionals built the titanic but amateurs built the ark...
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juhl View Drop Down
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Points: 6 		Post Options Post Options   Thanks (0) Thanks(0)   Quote juhl Quote  Post ReplyReply Direct Link To This Post Posted: 29/January/2005 at 6:22am

Thanks for the help, and the info.  I'll be doing that first thing Monday morning.

I'm curious though...by signing and accepting the terms of the repayment arrangements, does that not constitute a binding contract, which they are now violating the terms of? As well, no where in the repayment terms (which I've gone over many a time!) does it indicate their ability to garnish my money at will.  I looked in the Ontario Garnishment Act, which indicates such an action requires a court order. Am I mistaken in this?



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Ferren View Drop Down
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Points: 248 		Post Options Post Options   Thanks (0) Thanks(0)   Quote Ferren Quote  Post ReplyReply Direct Link To This Post Posted: 30/January/2005 at 1:15pm

This is an easy one. First of all, nobody is allowed to access your account without your written consent. The fact that you paid your creditor once by cheque is not authorization for what is called a PAD or preauthorized debit. Usually when you set up a preauthorized payment to someone, you send a voided cheque and an authorization to debit your account. In your case you said you did nothing of the sort. Therefore, what you need to do is dispute this with the manager of your bank and state that you never gave authorization for the debit. According to CPA rules, the creditor will then have to provide proof that you authorized it or else return the money. I have posted about this before but I will direct you to the Canadian payments Association website and relevant rule:

http://www.cdnpay.ca/publications/general_pad_paying.asp

If your bank refuses to play ball, inform them that you will dispute with the CPA and file a complaint against their institution.

 
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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: 30/January/2005 at 1:24pm

 

 That is awesome, Ferren.

 That is awareness up close and personal.

 
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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juhl View Drop Down
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Points: 6 		Post Options Post Options   Thanks (0) Thanks(0)   Quote juhl Quote  Post ReplyReply Direct Link To This Post Posted: 31/January/2005 at 4:51am
AHA!  That's exactly what I needed to know.  Thank You!  I will be speaking with my bank manager today.  I'll let you know how it all turns out. 
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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: 31/January/2005 at 8:08am

 

 Ok, email me your name and number, and I will call you when I am free to do so.

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: 5996 		Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 31/January/2005 at 8:09am

 

 Sorry, the above message was intended for the member "STEREO". Wrong thread.

 
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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