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Collection Agent forcing me to pay FULL amount.

Printed From: CanadaStudentDebt.ca
Category: Government Program Problems
Forum Name: Repayment Assisstance Plan (RAP) Issues
Forum Description: Rules, regulations and problems (Formerly Interest Relief and Debt Reduction)
URL: https://www.canadastudentdebt.ca/forum_posts.asp?TID=5054
Printed Date: 27/March/2026 at 12:23am
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Topic: Collection Agent forcing me to pay FULL amount.
Posted By: mahalin
Subject: Collection Agent forcing me to pay FULL amount.
Date Posted: 31/October/2008 at 2:27pm
I have National Student Loans Service Centre's letter saying 'your Canada-Ontario Integrated Student Loan Account Number:.....................'
So I think I have Federal Student Loan and Ontario Student Loan.

Is that right?

But Collection Agent saying that I have only Federal Student loan and from today the interest rate going to be 1.99 per day for 15G. And he said I must pay full because I have Federal Student Loan. So he can't reduce it to a lump sum which I can pay?


Replies:
Posted By: kdc27
Date Posted: 18/December/2008 at 7:15am
Hey there,
 
I know this was posted a while ago, but you never got an answer. In case you have not yet received one. Here is the info. If you have a canada - ontario intergrated loan it DOES mean that you have a federal and provincial loan. Part of it, once in colelction will be administered by CRA student loan collections and the other part by the provincial gov. As for the PCA (Private Collection Agency), they will by all means request payment in full since they are paid a percentage of what they collect (please note that you are NOT charged for the fees encountered by the hiring of the PCA, IE: you are not paying more interest on your loan). Second, you do have the possibility of making a payment arrangement with them. Payments arrangement however, will only be valid for 6 months and a new review will be done after the 6 months. You would need to complete, date and sign a financial questionnaire and provide supporting documents (proof of income, proof of expenses etc) this however, will acknowledge your debt, postponing the statute of limitation for an extra 6 years. Please note that this is applciable for the Federal part of your loan. I cannot provide any information on provincial loans.
 
Hope this help, and feel free to ask any questions

Posted By: SolveStudentDebt
Date Posted: 19/December/2008 at 2:04am
This 6-month payment arrangement issue is collection agency standard. Not government. What you are describing is exactly how a collection agency does things. As for acknowledgements, people can submit things without acknowledging if they truly wanted to in cases whereas the individual has no ability to repay. Payment though is an acknowledgement in every sense of the term.
 
As for the Ontario loans, there are no limitations that bind the Ontario government as of now anyway.


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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

http://www.solvestudentdebt.com" rel="nofollow - solvestudentdebt.com

Posted By: kdc27
Date Posted: 19/December/2008 at 2:41am

I never mentioned that the 6 months repayment arrangement was only the governement. All I stated was what the PCA should be doing for the federal student loan, since in this case, they are governed by the government. The financial questionnaire will be considered an AOD (ackowledgement of debt) (since it will be signed and dated and it does mention the student loan) wheter you have the means to pay or not (payment arrangement, short term assessment and or long term), however; payments are not always condidered and AOD since they could of been issued by a 3rd party.

This is a catch 22, in order to make a repayment arrangement (or aplpy for hardship), you need to complete the financial questionnaire, however; it will re-start the clock on the status of limitaton.


Posted By: SolveStudentDebt
Date Posted: 19/December/2008 at 7:05am
That is the point. It isn't the government's directive (internal policy). Collection agencies created these 6-month payment plan requirements, and the government really has no issue with it anyway. As for the financial questionaire that they (the government) distributes, yes it does state that upon signing you acknowledge the debt. However, who said that a financial disclosure has to be submitted on their form?
 
Payments are considered an admission - even if they are made by a third-party. However, if a third party makes a payment "for" a debtor that is not authorized and gets caught, that would be a wrongful action and would not count. But, if an authorized party makes a payment for a debtor, that is an admission of liability because it is an authorized and voluntary action that fits the description.
 
 


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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

http://www.solvestudentdebt.com" rel="nofollow - solvestudentdebt.com

Posted By: Rachel Paige
Date Posted: 06/January/2009 at 6:22am

I send 6 cheques to three different parties every 6 months (Nordon for the Ministry of Government Services/Ontario Student Loan, ARC for HRDC/Receiver General for Canada Student Loan, and CBV for CIBC - also a CSL. I have been doing this for years and years. Sometimes one of them will call me and say "I need more information before I can get this arrangement approved". I always ignore requests for financial statements and proof of income, etc. - and they always cash my biweekly cheques.   - Rach

 

 


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