I owe about $17 500 in student loans (it's a provincial student loan from Quebec), anyway for many years I wasn't able to make payments and the loan was sent to CBCL's Quebec branch. I made payments of $100 per month for about a year then they stopped cashing my cheques. When I finally spoke with someone at CBCL they informed me that my account had been transfered back to the ministry of education of Quebec. I made repeated attempts to contact the ministry and find out where to send my cheques as I did want to continue paying but finally gave up(but I did give them my contact info). Then six months ago (roughly two or three years since making my last payment) I get a call from CBCL. They ask me how much I can pay, I tell them about $100 per month. The gentleman I'm speaking with is polite tells me where to send the cheques and everythings fine. I ask him on the phone to send me some paperwork about my account, I then write a letter asking the agency to to send me some paperwork and to in future only contact me by post.

Well I didn't get the paperwork I wanted. And they called. Three weeks ago I got a call from Ms. Joseph from CBCL. She informs me that I need to send more cheques, I tell her that I will do so and again ask for some paperwork/receipt from them. While on the phone to me she makes all sort of suggestions : that I should borrow money from friends and family (both out of the question) and then suggests that I should apply for a loan from a bank, stating that the rates are quite low and that it would be a good idea. I thank her for her suggestions and tell her that I'll think about it. Then today she calls me up to ask if I applied for a loan. I tell her that I looked into it but that it didn't look like I was eligible (I self employed making under 20k, barely enough to house and feed myself). She then tells me that she is reassesing my account and that I need to apply for a loan before she can do so. I need to provide her proof that I tried to get a loan and was turned down so that I can continue to make my $100 payments otherwise CBCL will be demanding the full amount. And I have to all this done by the end of the week!!!

Is this a common practice? Can she demand that I apply for another loan? Or is CBCL breaking/bending the rules? What should I do?

This is the standard practice.  She WANTS you to apply for a loan so she gets more money from you (i.e. more commission).  As far as I know she cannot demand that you apply for a loan.  Well, she can demand, but you can ignore her demands.  The next time she mentions your applying for a loan, ask her to cosign!

OK, but she wants me to fax her a letter from the bank stating that I don't qualify for a loan. Is she within her rights as a CA to ask for this or is she breaking a rule? If so which one?

My relationship so far with CBCL has ok and I'd like to keep it that way. I only want to call them on this if it can't come back to bite me on the ass.

You don't need to fax her this letter as you don't have to take her suggestion to apply for a loan. 

Talhoffer,

If you don't mind me asking, who was the CBCL guy you dealt with? I'm referring to the polite one. I ask because I'm in Quebec too and also got a guy who was quite decent. I know he wanted more, but, like with you, he basically just told me to send what I could.

Buff

I believe his name was Mr. Leroc, not sure of the spelling.

Ok, different guy then.

*look of amazement crosses Buff's face*

Wow, CBCL actually had two decent agents? Maudite, hell has just officially frozen over.

I tried to phone my guy about something in November, but got someone else instead. He said the previous one was no longer with the company because he had ''found a new opportunity in life''. 

Buff

Buff,

Have you had the same request for proof of bank loan denial that I have?

No, but I did get the same crap about getting a loan though. My first agent, a lovely one that I referred to as the Wicked Witch of the West, told me to ask everyone. The second guy didn't go through any of that.

WWotW didn't believe me when I said that friends and family weren't options.

She said to try my bank. After they finished laughing, they said no.

She gave me the names of 2 extremely high interest banks and even told me to ask for certain people because they ''specialize in loans for people like you''. Gee, I feel good now. Thankfully both companies turned me down too. I was upset at the time, but now realize how much I would have been paying them in interest alone. She didn't ask me for proof, maybe because she knew the people that I phoned.

If she had asked for proof, I don't know what I would have done at the time. If it happens now (once someone takes over my loans again), I'll just tell them, in the official language of their choice, where they can shove it.

Buff

Talhoffer,

Sorry I didn't get a chance to respond yesterday. Simple Plan came to town last night and I had some stuff to finish up at work before the show. I'm not a huge fan, but felt the need to go anyway. Bands just don't come here, especially not bands that I've actually heard of.

Anyway, on to the advice. I wouldn't even bother trying to get that bank note. They can't make you do it. I'm not even sure they're allowed to ask for it. I think someone was out for a quick commission hit. If you make a payment, they get part of it, so they want to know you really can't get them the money. The other possibility is that they had some cranky boss on their case because they haven't brought in enough money and they need some kind of proof that they tried to get it.

As for stuff coming back to bite you, it doesn't matter what you do. If you don't pay the entire amount yesterday, they won't be happy and they'll continue to harrass you.

I live in Quebec right now, but I'm from another province and still have my old cell phone and no land line. There's no way I'll ever give that number out to a collection agency, so they just can't phone me because they have no number. The number also doesn't show up on call display (not even ANI, which toll-free numbers use), so I can call without them getting that number. 

I also learned the hard way not to give them a work number. They had one for me last year and called a lot, including every day for a bit. It got to the point where people stopped taking messages for me because it was the same person all the time. I think I missed a few important calls, but obviously I survived. Now that I'm in a different town, they don't have a work number anymore. I won't be putting any phone numbers or employer info on the next financial sheet.

When I call them, I usually just choose some random payphone and let that number show up on their call display. When they ask if that's a good number to call me at, I stifle the laughter and say yes. They get mad when they call back later and get the recording saying that this phone can't accept incoming calls. 

Buff

Hi Tal,

THe collector is not allowed to bully you. BY saying this, I mean the following:

1. entice you to pay the debt

2. force you to do something that you do not want to do if it is not in your best interest - or cannot do.  

3. Insult you or harrass in any way

Collectors are driven on commission earning. They only way they can make a living is to collect money. Also, their job depends on it. THey need to collect lots of money to satisfy their employers - aqnd themselves. This is why you are being treated this way.

The unfortunate part of this whole equation is that you are the one who owes the moiney, and every time you raise an objection towards this collector, or his/her antics, they will do whatever they can to overcome it and apply even more pressure to regain control. THis is where things tend to get uglier.

If you cannot refinance a debt by consolidwting through a bank, so be it. If they insist on you providing proof, it is just because they don't believe you actually tried.

Lastly, it is difficult for people to deal with third-party debt collectors - aqnd the original lenders who assign your account(s) out to them. Unfortunately, you have little to no bargaining power because if there is any hint of objection in your arguments, they will simply become more agressive and cause problems. It is an art ande science within their industry.

If there is anything we can do for you, give us a holler.

Johnny