Dealing with Abusive Collection Agencies - 2007 Auditor General Report

2007 Auditor General Report

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Topic: 2007 Auditor General Report

Posted By: paulaffleck
Subject: 2007 Auditor General Report
Date Posted: 01/July/2008 at 12:44pm

Probably the content from this link has already been discussed, but if not, I thought it merited a posting:

http://www.oag-bvg.gc.ca/internet/English/aud_ch_oag_200705_0_e_17475.html - http://www.oag-bvg.gc.ca/internet/English/aud_ch_oag_200705_0_e_17475.html

It's a link to the 2007 Auditor General's Report (Federal Government). Many contributors to these forums have criticized how CRA and HRDC's don't really monitor the compliance of private collection agencies with the CRA and HRDC's own collection requirements. This Report backs up those sentiments:

"The Canada Revenue Agency (CRA) contracts with private collection agencies to collect a large proportion of defaulted student loans on behalf of HRSDC. Both the CRA and HRSDC have a responsibility to monitor the private agencies' compliance with specified collection requirements. However, we found that neither one carries out this monitoring adequately. "

My observation is this: Does the opinion of the Auditor General that two governmental agencies have failed in their duties impact upon the viability of the kinds of legal proceedings some posters have suggested? (I note that this is the most recent report from the Office of the Auditor General, on this subject.) These reports can be mind-numblingly boring, which is precisely why nobody reads them, which is precisely why these collection agencies can get away with breaking the rules. So maybe we should all start reading them?

-Paul

Replies:

Posted By: SolveStudentDebt
Date Posted: 02/July/2008 at 6:46am

If a student loan borrower has been subjected to an erroneous default, and then sued by the loan provider for non-payment for whichever their reason, then the system;s failure is responsible. I agree. As for collection agencies, they get away with the things they do because ... well, just because. Who is going to stop them? That is where you have to start focusing. Who has the power to stop them from doing the bad things they do?

The federal government is actually in the process of discontinuing the use of third-party collection groups in the near future. There is an article floating around quoting Rosalin Frith and Monty Solberg on this particular subject.

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