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ARO and Credit Reporting

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perpetualowage View Drop Down
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    Posted: 20/July/2017 at 11:05am
Hello, let me start by saying this site has provided such a wealth of information. I have been able to put together a plan of action, but my scenario deals with a defaulted ontario student loan and credit reporting, and everything I've read basically says this is the wild west of debt.

For the first time in my life I have a job where I am not living paycheck to paycheck and have saved up to pay off the amount as a lump sum. Howver, I want to repair my credit rating and found my reports do not have accurate information. My NSLSC OSAP loan originally defaulted in late 2008 and went to EOS NCN collections. In 2015 it went to ARO collections. I have never made a voluntary payment (liens), though I have said I would on the phone with collectors and never did. The debt is currently being reporting regularly.


ARO reported MAESD STUDENT SUPPORT to Equifax a DOLA of 2015 (probably when they took the debt).
ARO reported MAESD STUDENT SUPPORT to TransUnion a DOFD of 2015 stating assigned 2 months later.

I plan to get the records from CSL/NLSLC and then mail a hand written letter to ARO requesting details in an attempt to begin a dispute with the CRAs over the DOLA and DOFD. I read that the CRAs only validate dates based on the collection agency information.

The end goal is to get the Credit Report dates to roll back to when the loan defaulted with the originally creditor, pay it off, and then have the CRAs remove the item since it is older than 7 years.

Can I get some advice on potential pitfalls or roadblocks that I should consider? I am concerned that paying off the debt or even writing in stating "I will pay it if you do this" will legitimately update the DOLA and ruin the plan. I think that requesting a written agreement from ARO not to report the account for X amount of time (payment deadline) and to close/expunge it without updating the DOLA is my best option. Do you think this is possible?



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introuble View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote introuble Quote  Post ReplyReply Direct Link To This Post Posted: 06/October/2017 at 10:37am
Did you get this sorted out. I'm in the same boat and wanted to payoff my debt to FDR but they won't reduce the amount even though I've heard some people had 20% reduced when they wanted to pay off their debt.

Any insights
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perpetualowage View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote perpetualowage Quote  Post ReplyReply Direct Link To This Post Posted: 23/October/2017 at 3:27pm
Not sorted out yet. I have a letter from the NSLSC coming with the date of original delinquency.

However, reviewing my credit report and this thread Credit Reporting Rules I realized that Equifax already moved my debt to public records, meaning it has fallen off being reported as derogatory. That means that Equifax has a date of original delinquency over 6 years for this account.

Transunion has the debt listed under collections, so it looks like that is actively hurting my credit, even though the STATUS column is blank. I wish this info was listed in the same format as my credit cards, which is laid out very clearly.

Now that some personal things are no longer in limbo I can move forward with the plan.
A) Get the dates changed.
B) Get a signed agreement for the agency to stop reporting and to only close the account when paid.
C) Get in writing that the debt is fully paid.
D) Have the CRA expunge the debts from their reports.

I looked at the possibility of bargaining to reduce the total amount paid, but I ended up deciding not to try that. You may end up blemishing your credit report with an indicator that you dont pay your debts in full, and that could stay on a credit report for 7 years, impacting some big purchases. Not sure how it would look when moved to public record.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote Royal-NCO Quote  Post ReplyReply Direct Link To This Post Posted: 24/October/2017 at 7:54am
As I understand it, the issue you are having is with the Ontario portion of your OSAP loan.  This particular portion has no statute of limitation.   There was a discussion about this in another thread, and there is debate about this, but it would appear that debt which has no limitation period for legal action, does not follow the same rules on the respective credit bureaus.  Equifax, however, seems to pushing off the collection after 6 years and putting it into the public record section.

2015, appears to be a key year.  I was targeted in the same year for the Ontario portion of my loan, and fortunately found a way to pay it in full before it reappeared on credit report.

If this is truly your Ontario portion of your loan, the only way out is to rehabilitate your loan, or prove severe hardship.  It will otherwise remain on your credit report indefinitely - sometimes disappearing, only to reappear again.
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Johnny View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Johnny Quote  Post ReplyReply Direct Link To This Post Posted: 24/October/2017 at 2:51pm
Limitations may apply in Ontario loan cases that were taken out before the change to the limitation law came in. It is very ambiguous though, as these writings often confuse people more than answer a question. 

The onus is always on a borrower to prove it anyway. There have been so many interpretations and theories bounced back and forth on the issue. From what I know, the Ontario government seems rather jumpy about loans that became due and payable on or before January 1, 1998. You would think that the change to the limitation law would be in effect for any loans that were taken out on or after the date of it's coming into force. The Ontario government say not so. It is good to invest and find out, which is something we are doing. 

 
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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perpetualowage View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote perpetualowage Quote  Post ReplyReply Direct Link To This Post Posted: 24/October/2017 at 7:05pm
Yes, it is the Ontario portion. I will be paying what is left in full, but want it to disappear from my credit report. The original default date was 2008 and I would like the report to reflect that, instead of 2015.

That way, if I understand things correctly, it can immediately be expunged from the credit report as it is older than 7 years.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Johnny Quote  Post ReplyReply Direct Link To This Post Posted: 25/October/2017 at 2:33pm
You have to negotiate that with the Ontario government as they are the ones responsible for the reporting. If you are paying in full there is a chance they will. Some of my clients have had it removed in cases where full payment has been made 

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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perpetualowage View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote perpetualowage Quote  Post ReplyReply Direct Link To This Post Posted: 26/September/2018 at 3:07pm
For posterity, I paid the debt in full. The ARO rep said the government now does regular promos that expunge student loan debts in collection, and I happened to call during one of the promos.

My latest free reports from Transunion and Equifax have nothing listed for that debt.
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Johnny View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Johnny Quote  Post ReplyReply Direct Link To This Post Posted: 27/September/2018 at 8:43pm
The Ontario government has set an incentive for people who owe to pay in full and it gets removed from the report. If you can pay it in full, it's a headache saved. 
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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