Collection of Old - Stats Barred - Loans - threatened with garnishment

Print Page | Close Window

threatened with garnishment

Printed From: CanadaStudentDebt.ca
Category: Immediate Attention and Info!
Forum Name: Collection of Old - Stats Barred - Loans
Forum Description: Post questions about old loans and Statute of Limitations Issues
URL: https://www.canadastudentdebt.ca/forum_posts.asp?TID=7124
Printed Date: 27/March/2026 at 2:17am
Software Version: Web Wiz Forums 12.07 - https://www.webwizforums.com

Topic: threatened with garnishment

Posted By: since4304
Subject: threatened with garnishment
Date Posted: 29/April/2016 at 8:41am

After entering into agreement with my Canada student loans last year to pay back 200 dollars per month; I was surprised they took my tax return as well. I still receive the GST.

My next monthly statement included the tax return credit; about 1700 dollars but also a demand for next months 200 dollar payment.

I returned the invoice stating that I was going to spread out the 1700 dollar payment over 8 months and will start paying 200 dollars per month again, in 9 months.

Today, I get this nasty call from an unlisted number demanding that I continue to make payments or my wages will be garnished. I told them that I already paid for the next 8 months with my tax return but was told the tax return was an involuntary payment or something like that.

I told the agent to piss off, so now I guess I'm waiting for my court summons as they will start garnishment proceeding.

Can anyone advise me legally if I'm in the wrong. I have no formal contract with Student Loans (Ontario), only an over the phone verbal agreement to pay 200 per month

Replies:

Posted By: SolveStudentDebt
Date Posted: 30/April/2016 at 7:50am

I know it seems reasonable in saying that the seizure of income tax money is a way of saying "I am making payment". However, what they told you is exactly how they see the world out there, and it is not something "you did" to show what they call "good faith". You have to be very careful what you tell these agents when you are both confronted and frustrated with demands they make. I spend a lot of time helping people with communication patterns and ways to overcome the nasty attitudes and beliefs that the human capital within the system has towards borrowers.

-------------
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: Royal-NCO
Date Posted: 30/April/2016 at 11:12am

You should call and find out about rehabbing your loan. After $200/month payments for a while, and $1700 seizure of tax return, you may find that there is little outstanding interest. Of course, only you know how long you have been in arrears. If you have limited outstanding interest due, you may find that you can get the whole federal loan out of collections.

Posted By: Royal-NCO
Date Posted: 30/April/2016 at 11:13am

or is it provincial? Do you know exactly what you're paying back with that $200?

Posted By: bladerunner12
Date Posted: 02/September/2016 at 8:09pm

Hi Johhny I have two questions, first what is the ultimate statute of limitations when does it star and how does it differ than the normal statute of 6 years for federal loans. Second question prime minister Justin trudeau said that nobody has to pay back loans starting november 1st 2016 if they do not make more than $25,000 a year. Will that get car collections off our back they should know by our tax returns our income. Thanks Johhny.

Posted By: administrator
Date Posted: 04/September/2016 at 6:28am

Justin Trudeau does not understand the student loan process. Every time they have introduced new regulations there has been a total mess up for some people. We already have the RAP program in place. How does this impact RAP, mr trudeau? Or are you just using the already in place RAP program to present an image of helping people? What happens to the interest? Is the loan forgiven? Is the principle reduced or are you just delaying the payments till later in life?

These questions need to be answered!

-------------
Administrator
Mark OMeara
Author of Let Go and Heal: Recovery from Emotional Pain
https://LaughSingWrite.com - http://bit.ly/heal2024

Posted By: bladerunner12
Date Posted: 07/September/2016 at 8:52am

No interest accumulates during the time you don't make $25,000 is my understanding as for the RAP program you can't even get into that program until your interest is paid up, which for some loans is 75% of the loan, so really no help at all.

Posted By: SolveStudentDebt
Date Posted: 28/September/2016 at 7:36am

Standard limitation for student loan recovery is 6 years from the date that is named last admission or liability (acknowledgment). The exception is Quebec which is 5 years, and then extended an additional 5 years if the Ministry in Quebec issues a written signed final demand before it expires. And, of course, Ontario and Nova Scotia having no limitation period that binds them from recovering money owed.

-------------
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: bladerunner12
Date Posted: 28/September/2016 at 9:19am

That is correct 6 years from last acknowledgement be it a payment or something signed by you stating acknowledgement like there illegal financial questionnaires.

Posted By: SolveStudentDebt
Date Posted: 29/September/2016 at 5:42am

Well illegal, no. Hook line and sinker with the intent to protect their best interest, yes. Wording is what they are really good at. Protecting people from their wording and slippery ways of luring and setting those hooks is what we are good at. :)

-------------
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: bladerunner12
Date Posted: 29/September/2016 at 3:17pm

Are the CRA collectors for student loans the same one for tax debts just curious.

Posted By: SolveStudentDebt
Date Posted: 03/October/2016 at 1:05pm

No. tax and non-tax are separate.

-------------
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: bladerunner12
Date Posted: 03/October/2016 at 7:14pm

Is it still CRA policy not to send cases to the legal department when the statute of limitations has reached 1 year mark or less? I read it some where In CRA policy that the legal department does not want cases that are within one year of reaching SOL. Im guessing not enough time to prepare.

Posted By: SolveStudentDebt
Date Posted: 08/October/2016 at 5:20am

Back before CRA was handed the responsibility to collect student loans it was HRSDC collection services. Back then, if a private agency was involved then the referral for justice had to be made a minimum of 6 months before the limitation period would expire. The same applied for for HRSDC government collection agents.

CRA Legal Services and their non-tax collection team is far more aggressive and efficient than the old collection regime. If they can jam out a SOC and have it served on someone a day before the limitation date then so be it.

The government's policy is to find money in any way that can be done. Truth matters less. money matters more and that is the business model of that crown financial sector.

-------------
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: bladerunner12
Date Posted: 08/October/2016 at 1:38pm

Thats really brutal, sounds like something they would do though. Thanks for the answer Johnny.