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Another confused citizen

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AmyAdams View Drop Down
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    Posted: 05/January/2017 at 4:24pm
Hi there,

I took out a loan in 1997 in BC thru RBC. I paid off the loan in full in 2011 thru my bank account at the time - a cash transfer at BMO.

Yesterday, I received a letter in the mail that I owed the balance again - it was the same balance that I had paid before, divided into 2 amounts - a CSL4 amount of $500 CSL4 and a CSL2 amount of $6,500  - total $7,000. The letterhead was from the Employment and Social Development Canada.

I'm in the process of finding any old paperwork that will show my transaction from paying it off in 2011 but I'm not sure if I would be able to, as I closed my BMO account years ago. I also did a credit check report (I paid for a thorough one) and there was nothing about student loans on there - this was done around April 2016.

I've requested from the CRA to clarify any debts I may have associated with them; however, in reading all the topics on this site and internet in general, I'm a bit worried that I might "owe" money without even knowing it.

Does anyone have any initial advice or perspective to this situation? Has anyone ever experienced this before? I've *thought* I was debt free for years now but was frightened to see such letter in the mail yesterday.

Thanks in advance!



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Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 05/January/2017 at 5:51pm
The loan might actually be statute barred.... don't write any letters or make a payment until you clarify that issue, otherwise you will lose that status...

More info here...
http://canadastudentdebt.ca/forum_topics.asp?FID=90&title=collection-of-old-stats-barred-loans
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Mark O'Meara

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Post Options Post Options   Thanks (0) Thanks(0)   Quote Royal-NCO Quote  Post ReplyReply Direct Link To This Post Posted: 06/January/2017 at 3:17am
Its really hard to know what the status of your loan is.  We don't have enough information.  Were you ever behind on your loans?  Were they ever in default?  Once those old loans go into default, they get broken into multiple different pieces.  Therefore, its really hard for me to say with certainty, what you've actually paid.  Your last activity date may be as recently as 2011, so they likely aren't barred, but without more information, its impossible to give clear information.  

 You need an expert to dig into your loans and find out what actually happened.  I don't know if Johnny is availably right now, but I am sure he'll reply to your post shortly.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote AmyAdams Quote  Post ReplyReply Direct Link To This Post Posted: 06/January/2017 at 6:32am
Thanks! Does anyone know or can clarify for me, what information I need to gather and work with in order to know what the status of my loan is? Or even how to find out your true debt status? My credit has not been affected in any way at this point and is above average.

I also realized I didn't my first post may not be that clear - this is a strictly a letter in regards to a student loan, not a loan of any other kind.

Thanks again.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 06/January/2017 at 6:34am
With the limited puzzle pieces .... 

First of all, a CSL2 is a bank-risk shared portion. If the government of Canada is pursuing you for a CSL2 then this is what is called a "put back". The loan was actually bought by the government from RBC for the scheduled cost, It is difficult to find this information because they don't really want people to know too much, but the government of Canada buys these put-backs for 5 cents on the dollar. 

If you actually paid the RBC student loan and have record of that you have a case for dismissal. 

The best thing to do is track your loan history, and be very careful about it because you don't want to disrupt any limitation issues that may be in place. 

During the years in which you studied, I would say you took loans out out before and after 2000. CSL4 is coded "Federal Direct" and those are part of the new generation integrated program. CSL1 and CSL2 are old risk-shared generation. 

Possibilities: 

1. Your RBC loan was comprised of 2 parts - federal and provincial risk. THis means you actually have two loans.  The bank may not have picked up on one of them for some odd reason, which I have actually seen in cases over 27 years working with student loan borrowers. 

2. You paid it but the bank failed to close it off and it was sent to the government anyway. In this case you have to find proof of payment to RBC. If you paid RBC money then it is easy to find that out. You simply communicate with them and seek a detailed statement of account for your prior RBC student loans. 

3. The current loans you are being pursued for may very well be statute barred anyway. If this is the case then they will be closed once a limitation issue is proven to be so. 

Your points of contact are: 

BC Revenue Services for BC direct or guaranteed loans 
RBC Student Loan Collections Office in Ontario for risk-shared 
CRA Non-Tax Collection Office either in Surrey BC for Federal direct, Integrated, or Guaranteed (if you took the loans out in BC). The Surrey office might bounce you to CRA in Belleville, Ontario. 

Again, if you are not versed in how to safeguard yourself from disrupting limitation issues, it is a job for a professional.  I can help you but it is a business and there are costs. I try to give as much guidance to people here, but there are barriers and huge risks involved if you are not versed in procedures, process, and system. 

Good luck with this. Keep us posted! 


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

solvestudentdebt.com
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Post Options Post Options   Thanks (0) Thanks(0)   Quote AmyAdams Quote  Post ReplyReply Direct Link To This Post Posted: 09/January/2017 at 3:48am
Thanks for the replies! Is it common or likely that even though if one pays off their student loans, they may not be closed out in the bank/CRA/government website and can come back years later?

Thanks again everyone!


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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 09/January/2017 at 6:19am
Your points of contact are: 

BC Revenue Services for BC direct or guaranteed loans 
RBC Student Loan Collections Office in Ontario for risk-shared 
CRA Non-Tax Collection Office either in Surrey BC for Federal direct, Integrated, or Guaranteed (if you took the loans out in BC). The Surrey office might bounce you to CRA in Belleville, Ontario. 

This is how you find the answer to your question. 
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

solvestudentdebt.com
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Royal-NCO Quote  Post ReplyReply Direct Link To This Post Posted: 09/January/2017 at 6:41am
Originally posted by AmyAdams AmyAdams wrote:

Thanks for the replies! Is it common or likely that even though if one pays off their student loans, they may not be closed out in the bank/CRA/government website and can come back years later?

Thanks again everyone!



Getting screwed by a collection agency who fails to report payments on a debt, was quite common in my experience.
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