Maybe someone can give me advice - I had a student loan 8 years ago.  After graduating, I stayed at home with no employment income of my own to raise my 3 kids while my hubby struggled to pay the bills.  After few years and only a small amount paid back to the loan, I was told that my loan had been written off (whatever that means I guess.) and guiltily decided not to worry about it anymore.  After 5 years a collection agency called me and caught me off guard.  I agreed I owe the money but I didn't have any to give them, but that's not good enough.  Borrow money to settle?  If I could borrow money I'd use it for here and now!  They keep asking for a finanicial statement but I feel uncomfortable sending it in.  How long and often can they keep calling, even after I notified them that I didn't want them bugging me anymore. I never set any payment arrangements, yet the collector claims I did and I have no proof that I didn't.  How long will this haunt me and my credit?  I have no resources to pay this off right now, and I hate answering the phone! 

suzigirl,

I've been researching this stuff a lot lately as I'm in an almost identical situation.  Collections people have many regulations to which they must adhere.  For example, it is my understanding that they aren't even allowed to suggest that you borrow money to pay back your student loan.  Not from a bank, or a business and not even from friends or family.

If this is so far been just a voice on the phone, tell them to send a letter of credentials and any or all documentation pertaining to the alleged defaulted loan.

Don't worry, they themselves are not empowered to initiate any legal action.  So threats of a bailliff or sherrif pounding on your door any time soon are a scare tactic.  They can only refer the case back to the government or their representatives for legal action and that is only after they can prove they have exhausted all other legal avenues to recover the funds and can safely demonstrate that the CSL client,(you) have have no intention of paying anything.

Next time you speak to them, insist on the written documentation and do not volunteer  any information or promise anything else until that is in your hands!

Reserch this site.  There is a ton of info related to this outside of the forums themselves.

Don't panic.  That's what they want you to do.

Good luck and let me know if you find anything useful.

Nealyman 

Another thing.  Look at the section on this site titled Dealing with Collection Agencies. They may not call you more than twice in one day nor more than five times in a five day stretch, (supposedly).  Tell them that all future correspondence should be via Canada Post!  They won't like that.

Get familiar with the rules and regs and the  names of the institutions that govern their business.  Use them in converstion if you have to.  The more frustrated they get, the more nasty they'll try to sound.  It's air.

You are perfectly within your rights not to hand over personal information or funds or even to state your immediate intentions to a voice on the telephone other than to say your looking forward to receiving their letter.

They want the money sure but they also don't want hassles that affect their bottom line.

Their worst nightmare is a well informed and determined voice on the other end of the line.

This will at least buy you time to decide on an appropriate course of action.  Keep up the research.  Ask for help.

 Nealy,

 When you wrote:

 "Don't worry, they themselves are not empowered to initiate any legal action." ...

you should note that if there is an avenue of execution, then they are absolutely empowered to do so. Although the HRDC has specific guidelines for the litigation of Crown debt, collectors are required to refer files back to HRDC for justice IF the situation warrants it.  

 Not all threats are scare tactics. It is important to point this out because if someone trusts that they will not be sued simply by reading that statement, and they in turn are sued ....

 You wrote:

 "For example, it is my understanding that they aren't even allowed to suggest that you borrow money to pay back your student loan.  Not from a bank, or a business and not even from friends or family."

 Collectors are allowed to suggest that a debtor borrow money, most certainly. The guidelines on this collection practice outlined in the third-party PCA directives (and certain Provincial student loan directives) stipulate that a collector can suggest it - IF a) it is determined that the student loan borrower is clearly able and willing to do so, and; b) IF it is solution to the problem and will not cause any financial hardship.

 Suggesting is allowed. Enticing or demanding accompanied by abusive or threatening overtones, unrealistic consequences, or unethical tactics is against policy - and in some cases the law.

 YOu wrote:

 "They can only refer the case back to the government or their representatives for legal action and that is only after they can prove they have exhausted all other legal avenues to recover the funds and can safely demonstrate that the CSL client,(you) have have no intention of paying anything."

 This is for CSL. There is also a checklist that thew collector must follow before the account can be referred. I had posted this checklist in a previous post.

 The real problem with this is that collectors can make it appear that a CSL client is not acting in good faith, and is uncooperative when they really are acting in good faith. This is a problem that has plagued many because there is no real supervision in the third-party sector by the government(s).  If the collector (backed by the agency) says this is how it is, then the government simply says, "OK".

 If a collector wants to lighten the load of accounts in his or her section that are not paying, and the collector feels that it just too much work and a waste of time to make the calls, they simply send them off for justice. This way, they clear some space for other accounts that may be more collectable that will earn them their commission cheque for the month.

nago,

if you need help, we will help.Call John call observer they both have the ability to assist you. if it is about needing money for the help they offer do not worry about it things have a way of working its self out..

Troy

you have friends on here that you do not even know about.

Thanks for all your bits of info - This student loan was so long ago it's hard to remember...I borrowed from the provincial and federal government (I think!!) through the Royal Bank.  Royal Bank is who is trying to collect.  I have received many letters in the mail through this collection agency, and my file had been passed from one person to another - is this a loan that can affect me in court or a wage garnish?  I hate avoiding it because I know I owe, but when you have nothing to give...