My story goes like this. Scotia Bank screwed up my loan through some sort of "clearical error" I tried negotiating with them to no avail, so I told them that when they were ready to come to the table and talk to me I would be there to listen....this never happened.

Being young and foolish I pushed this to the back of my mind. Now CBCL is caling me saying I owe $24000. They tried their usual tactic of threatening me and saying I had to pay the amount in full. As I gross $19500 a year this is not going to happen. I asked what my options were and the rude woman on the phone told me asking questions would do me no good, I just had to pay.....so I told her our conversation was done and I wanted to speak to her supervisor.

This guy then tells me that my only option is to settle for an even $20000 and pay in full, or pay $6500 up front and pay $380 a month after that. If I could not do this, He said it would go on my credit report, and I would then have federal dept and told me that "federal dept is much worse then I could ever imagine it is." And that there would be serious legal fallout over this.

Just to mention in case it is of importance. I have had some small credit issues in the past but nothing serious. My other student loans which have all now been transfered to the NSLC are in good standing.

Questions

1.My issue is with Scotia Bank, I have no account with them now. I do bank with CIBC...can Scotia or the Government get at my funds there? What should I do to avoid this?

 2.What are the legal actions that they can take aginst me? I do not own a house or new car...what can they take? Can they take my wages?

3. Are there other options available to me (i.e. alternate payment plans) that they have not told me about?