18 months default and counting
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Topic: 18 months default and counting
Posted By: pillowhead
Subject: 18 months default and counting
Date Posted: 15/July/2013 at 2:11am
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Facts: 1) I owe less than 4000 principle on one loan. I owe less than 9000 on another. These amounts are lose to the actual amount but not exact amounts. 2) I have not made a payment in over 18 months. 3) I have been given settlement offers of 90% of the principle on both of these loans. The collection agency (metropolitan) has told me they can not offer less than 90% because they are government loans. 4) The collection agency has told me that the CRA has put a lien against future income tax refunds and that my SIN has been marked to not allow me to apply for future Student loans. 5) I have not earned a penny in Canada in the past few years. The CRA has been sending me letters to file income tax for the past couple of years. Of course I have no income tax to file but it makes sense they are sending this now as they put a lien on me. Questions... 1) Will I ever get an offer to settle less than 90%? 2) Can they freeze my Canadian bank accounts? If they can freeze them can they take over the accounts and force me to sell stock and take the money? Or can they only freeze the account? 3) Can they access a LIRA and take the money in that account? 4) Can they do anything to my non Canadian bank accounts? (are there specific countries that they can access non Canadian accounts? 5) Should I sell all my stock, do a cash withdrawal and bring the money over seas to my other bank accounts? (If yes, how long do I have to do this...is there a certain month of defaults that they freeze accounts) 6) The collection agency sent me a form to fill out to explain my financial situation.. they says this will prove financial hardship and make them halt my case for 3 months..I don't believe them it probably has something to do with building a case for court which will allow them to freeze accounts...which is why Im debating moving all my assets. 7) I never plan to earn another penny in Canada again, is there really anything they can do to me other than harass family members with phone calls? 8) Any other information you can give me or advice to continue my deadbeat way of not paying them. Yes I have the money to pay them but I have already paid off the loans 200% and basically just decided to say F it..the banks all got bail outs, and Ive more than paid my share... Thank you for any advice you can give me. |
Replies:
Posted By: administrator
Date Posted: 15/July/2013 at 5:13am
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You might be better to pay the loans, bring them up to date then apply for RAP. That way your loans are in good standing and you may qualify for principle reduction. I understand your frustration with having already paid two times more than you borrowed and still owing alot of the principle. This is where the govt makes its money. Anyone else with thoughts? ------------- Administrator Mark OMeara Author of Let Go and Heal: Recovery from Emotional Pain https://LaughSingWrite.com - http://bit.ly/heal2024 |
Posted By: tkarmy
Date Posted: 15/July/2013 at 7:44am
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The only bank accounts that can be tapped into are the ones you have student loans from prior to 2000. So if you received loans from the royal bank they can freeze your account. If you no longer bank with that insititution. If you never plan on working in Canada again and you don't acknowledge the debt in anyway for 6 years (unless the loan was issued by Ontartio or Nova Scotia) the statute of limitations will make the debt uncollectable. Not the most responsible way out but it is an option.
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Posted By: administrator
Date Posted: 16/July/2013 at 5:44am
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Just a clarification to my earlier post. I'm not sure from your post if you are in Canada or overseas. If overseas, you would not be eligible for RAP. ------------- Administrator Mark OMeara Author of Let Go and Heal: Recovery from Emotional Pain https://LaughSingWrite.com - http://bit.ly/heal2024 |
Posted By: pillowhead
Date Posted: 16/July/2013 at 6:24am
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What counts as acknowledging a debt? Does talking to them on the phone count? Or do I have to make a payment to count as acknoledgement? If I did talk to them on the phone (which I did-1st time in 12 months), can I pretend that wasn't me? I do have a loan from prior to 2000, but it was with CIBC. I do my Canadian banking with TD. Are my bank accounts safe from being frozen? I am only in Canada a couple times a year to visit. I do not reside here anymore and have not for multiple years now. Here is shot in the dark question, not sure if anyone will have an answer on this site. LETS SAY I make a huge mistake and get married  , and let say that person were of a different nationality, would this pose problems with getting a passport from their country or them getting one from Canada?
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Posted By: administrator
Date Posted: 16/July/2013 at 8:18am
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For info on loans becoming statue barred, there's more info here: http://canadastudentdebt.ca/forum_topics.asp?FID=90&title=collection-of-old-stats-barred-loans" rel="nofollow - http://canadastudentdebt.ca/forum_topics.asp?FID=90&title=collection-of-old-stats-barred-loans ------------- Administrator Mark OMeara Author of Let Go and Heal: Recovery from Emotional Pain https://LaughSingWrite.com - http://bit.ly/heal2024 |
Posted By: pillowhead
Date Posted: 16/July/2013 at 10:35am
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Thanks, I am currently in negotiations with a creditor. Two interesting things came up. 1. She attempted to tell me there was a co-signer. I am very sure there is not, I then called the original lender to request the original copy of the loan and told them about the situation. The person on the other end said as far as he knew student loans had no co-signer and this is an illegal tactic and they will research what just happened and get back to me to officially tell me if there is a co-signer or not (since he said Student loans aren't his department and he wanted to make sure before giving me an official answer). 2. The credit agent started to do something funny and say my birthday out loud and talk about the year ,and suggest I am trying to do something funny but she wouldn't elaborate, I attempted to play stupid (which I kind of was to this point) but she wouldn't budge. She is worried about something that has to do with my birthday and the age of the loan or last payment. Any idea what this would be? 3. I have no income, no assets, essentially they can not collect anything off of me, what do you think is the lowest % I can pay as I did negotiate a bit. I offered about 10%, they wanted 50% up front plus payments or somewhere closer to 80% one time settlement. I have heard of people settling for 10%, I have also heard on student loans its near impossible to get below 80%. I feel I have a very strong negotiation position with them as realistically the only thing they have that I want is for them to stop calling my parents. (assuming theres no co-signer) |
Posted By: administrator
Date Posted: 16/July/2013 at 6:12pm
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You are dealing with a collection agency rather than the creditor.... they get paid on commission...Some of these agents are sick people. One called me years ago not to work out any payment plan, but just to abuse me saying over and over again "You're really rude for an old man." There was likely no cosigner. Just another tactic to try to wear you down. If you have nothing to offer in payments, then calling them will only get them smelling money...and they will harass you as much as possible. You might check with CFWgroup.ca They charge fees, but could act on your behalf to negotiate and deal with these abusive collection agencies... ------------- Administrator Mark OMeara Author of Let Go and Heal: Recovery from Emotional Pain https://LaughSingWrite.com - http://bit.ly/heal2024 |
Posted By: pillowhead
Date Posted: 23/July/2013 at 7:43am
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Update: The agency called me today and offered me a settlement of 50% of the principle. They say they require me to send in pay stubs(don't have any), bank statements for the past few months (no problem), and a hardship letter. They said they require the statements, stubs and letters in order to convince the owner of the debt to settle. They said it is just a formality and that the bank will accept the 50% settlement. 1) Is there any danger in sending these documents in? 2) Is there a chance I can get a lower settlement? They did agree to 50% pretty quickly and are trying to press this through quickly- by the end of the week. 3) They are trying to get me to max out a credit card to make the payment. I will be selling stock instead, is there a chance that they will see the money came from another bank account and they will reneg on the offer? |
Posted By: administrator
Date Posted: 23/July/2013 at 11:35am
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Get the settlement offer in writing first before making any payment. See if you can negotiate a lower settlement.... Haven't heard of the requirement for paystubs before to get a settlement approved... Be careful.... get everything in writing from the collection agency first... ------------- Administrator Mark OMeara Author of Let Go and Heal: Recovery from Emotional Pain https://LaughSingWrite.com - http://bit.ly/heal2024 |
Posted By: SolveStudentDebt
Date Posted: 24/July/2013 at 3:41am
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If you have to by submit criteria for approval then it means it is not approved. The student loan provider has to make the final decision. Also, by submitting this criteria, or anything that is cuasation for an admission of liability then the limitation clock is reset thus giving the agency and loan provider the ability to pursue you legally once again. If the bank is agreeing to settle for 50% then there should be no requirement for anything other thn the payment. As Mark pointed out, get it in writing by the agency that they, acting on the banks behalf, are permitted to accept that sum of money, and once it is paid the account will be closed and reported as settled in full. If they still push you to provide documenttion outlining your situation then that is a ploy to acuire an acknowlegment first and foremost, and see what kind of money you have available. Then, they can come back and say the bank rejected the offer, which is their method of upselling. If you acknowledge it then you run the risk of the agency suing you if you object in any way. Afterall, they will have the right-of-way to do so because the debt is acknowledged, and they will know you have some money because of your action to attempt settlement. Any agency that comes out of the gate offering settlements that low is fishing for acknowledgment and what sort of money you can come up with. Then, they got you. I see this every day. I can help but there re fees. If you want an analysis and assessment you can contact Heather at 902-830-5061 and set up a telephone appointment. Hope this helps! Cheers! ------------- 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 |