2. If I voluntarily pay off a defaulted student loan that is Statue Barred that falls under the 1990 limitation act which I believe has no provision to extend a limitation act -can the collection agency report the payment to my credit report and therefore affect my credit rating again?

3. If I received a student loan in 1996 and never made a payment on it ever or acknowledged it when is it legally considered in default?

 

Please see this background to assist with answering. I have had my income tax withheld from the CRA due to an old Ontario Student Loan, I had a Canadian one as well but they have closed the file apparently from the research I have done. The loans were taken out in either 1995 or 1996 and went into default immediately as I had to withdraw from school and was hospitalized and later on sick benefits for sometime. In 2005 when I finally got back on my feet I voluntarily called around to search for any outstanding debt that I might have to pay off (no debt showed on any of my credit files at this time so I called around seraching on my own) This stirred up collection calls and they started to harras me even though I sought them out.  The collection agency also previously held my Federal loans and for those they harrassed me at work and threated actions they were not legally allowed to. When I threatened them as they were using methods that were illegal they then stopped taking my calls. At this point they indicate to me they no longer hold the Federal collection account. I am dealing with the same company now ARC for the provincial portion as they submitted it to CRA to withhold income tax and are trying the same methods stating that they will sue me. Since the loans were issued/defaulted and not acknowledged prior to January 1998 I believe that under the Ontario Limitations act of 1990 and 2002 this debt is STATUE BARRED. My question is about the income tax portion being withheld now- If I can prove that this debt is indeed Statue Barred does withholding the income tax fall into limitation period for commencement of action or is this different from taking legal action actionst me? I am presently awaiting documentation from the collection agency for proof of debt (they are contacting the orginal debtor apaprently) as they send me letters with different information constantly threatening legal action and when I asked about the particulars other than the fake amounts they give me they had none and said they would have to request proof.

Thanks for your assistance with this matter