Interest problems at TD

Hi,

to make a long, frustrating story, short, the TD Bank is asking me to pay interest for six months even though I've been in school that whole time. The problem is that they told me they need the government 'list' of students who are in school full-time to count me in that group; and did not tell me to fax my schedule 2 until january (until then they said they wouldn't even look at it). the amount is not a lot, but it pisses me off - and they're saying they won't update my file until i pay the interest. i think i will mail it in, just so it doesn't default (what a shock that would be!) but does anyone know where to complain? have had the same problem? was going to write a letter and cc it to my mp. any other suggestions? thanks.

Hi.

I posted a similar reply to someone who had similar grief with CIBC.  It's interesting to see that TD has picked up this illegal position as well!

First, the bank employees are correct in their belief that some applications will be denied when the student's loans are not in "good standing" (eg. outstanding interest). However, they are wrong about which documents include this good-standing requirement.

If you were applying for interest relief for financial hardship (as outlined in the Canada Student Loans Act), then your application can be approved only if your debts are in good standing. The staff won't even process these forms, because the applications would be denied.

BUT... For some idiotic reason, some bank employees think that this good-standing requirement applies to everything! Bizarre, but at CIBC, they won't even send blank applications to you until you pay all outstanding interest on all loans. In essence, CIBC has created an application process for application forms!  It's sick.  More sickening, this is a collection tactic.

Okay, confirmation of enrolment (COE)...  Federal law says that the student cannot be charged interest when the confirmation of enrolment forms are in place (at the bank).  If the forms are not in place, then the bank cannot collect interest payments from the federal government, so the bank is free to charge the student.

But what if you don't have COE forms on file in the bank while you're still a student?  Let's suppose you "forgot" to file them, or maybe you DID file them, but some pecker-spooge bank employee didn't enter the COE information into your file.  In either case, the bank can't collect interest from the government, so they grab the money from the student.  You lose.  You will never get that money back.

When you DO file your forms, the bank staff must (MUST MUST MUST MUST!!) enter the COE information into your file.  At that point, the bank cannot charge interest to the student, because they are again free to collect from the federal government.  Federal law is precise and clear on this point, and the same rules apply to student loans from Alberta, Ontario, and probably every other province and territory in the land.

If the bank employees tell you that they cannot enter your COE information until you send money to them, then the bank is acting contrary to black-letter legislation. Tell them that they must enter your COE information, and they cannot charge interest to you.  Tell them this in a registered letter, and immediately send copies to HRDC-CSLP.  The government needs to know that the banks are breaking black-letter law as a collection tactic.  It's disgusting.

Then again, the government already knows.

--Sean