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Credit Card Debt Gone Collections

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    Posted: 06/December/2016 at 7:57am
In 2008 I paid my student loan off with a credit card (I'm dumb). The last payment was made in April 2011. It's in collections. I received my credit report months ago and see it on there and it says it will automatically be purged from my report 6 years from last activity. The 2011 April payment is the last activity as far as I know.

My questions are:

Can they still sue me and/or garnish my wages before the 6 years is up in April?

Thank you for any/all help!!!!! 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 07/December/2016 at 8:33am
If you paid it off then there is nothing to litigate. If you owe a student loan and you don;t pay then they can sue a person, of course. The 6-year purge mark on credit reporting is a different limitation than the life lf a debt so to speak. Just because something drops off of a credit report doesn't mean that they creditor cannot collect - unless the debt in question is proven to be statute barred. 

You say you paid the student loan off. If this is the case then there is nothing they can do as the debt is paid. 
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 07/December/2016 at 11:08am
Is the OP  asking about the credit card debt or the student loan debt?

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Post Options Post Options   Thanks (0) Thanks(0)   Quote Royal-NCO Quote  Post ReplyReply Direct Link To This Post Posted: 08/December/2016 at 12:56am
I think what he means is that he used his credit card to make a payment in April of 2011, and is wondering if the loan is statute barred or if legal action can be taken again him.  Canadian Tire MasterCard, for example, allows you to make payments to your student loan and also collect cash back on your credit card.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 08/December/2016 at 6:13am
"In 2008 I paid my student loan off with a credit card (I'm dumb). The last payment was made in April 2011. It's in collections."

If the student loan is paid off then there is nothing they can pursue you legally for.  The debt is paid. Unless you did not pay it off. If there is still a balance owing then they have 6 years from the date of last admission of liability to sue you. 

If the debt assigned to collection is the credit card account that used to pay off the student loan with, then the creditor has a certain amount of time to sue you, depending on the province. For example, if the credit card account was opened in Ontario,  then the creditor would have only 2 years from the date of the last admission of liability 

Limitations for credit reporting are completely separate. For example, in Ontario, the provincial law prescribes a 7-year period to report. However, the credit bureaus only reports unpaid debt in collection for 6 years as a standard rule, unless there is judgment or no limitations that apply to the debt being reported.   
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote johnnybgoood Quote  Post ReplyReply Direct Link To This Post Posted: 12/December/2016 at 7:36am
Thanks for all your help everyone. Royal-NCO is correct, I wondering if the loan is statute barred or if legal action can be taken against me. The student loan was paid off.


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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 13/December/2016 at 3:58am
You wrote: 

"In 2008 I paid my student loan off with a credit card (I'm dumb). The last payment was made in April 2011. It's in collections."

If you paid the student loan out then there is no debt to sue or push a limitation on. A debt paid is a debt paid. 






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

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Post Options Post Options   Thanks (0) Thanks(0)   Quote Royal-NCO Quote  Post ReplyReply Direct Link To This Post Posted: 13/December/2016 at 12:03pm
Originally posted by johnnybgoood johnnybgoood wrote:

Thanks for all your help everyone. Royal-NCO is correct, I wondering if the loan is statute barred or if legal action can be taken against me. The student loan was paid off.



If you made a partial payment with your credit card, then you likely revived the statute barred state of your student loan, if such as state ever existed.

If you fully paid off your loan than this is no longer a student loan issue.  You'll need to check your local limitation rules.  In Ontario, an unsecured debt like a credit card has a 2 year limit.  You may have a statute barred loan if you managed to avoid any payment or written acknowledgement of the debt over the last two years, or whatever the limitation period is in your province.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 13/December/2016 at 2:27pm
I'm assuming you have defaulted on the credit card and therefore are worried about the student loan, because the credit card was used to pay off the loan.  Is that correct?

You would not be sued for the student loan. They got their money. How you paid it is not something they'd be concerned about.

The credit card debt might result in a lawsuit for recovery, but as Royal-NCO states, it might be statute barred depending what province you are in.




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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 20/December/2016 at 9:59am
Isn't that what I already said. ? LOL
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 20/December/2016 at 10:02am
He's not asking about credit card. He is asking about student loan. 
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote Royal-NCO Quote  Post ReplyReply Direct Link To This Post Posted: 20/December/2016 at 10:34am
Originally posted by Johnny Johnny wrote:

He's not asking about credit card. He is asking about student loan. 

Its not at all clear what he's asking.  You don't know any better than the admin or me.  He could be asking any of the three below.

1)  Used credit card to clear student loan fully, but oops it still sits on his credit report as a debt owed.  Can they sue him?

2)  Used credit card to pay student loan partially.  Still in collections.  Can they sue?

3) Used credit card to pay loan fully.  Credit card debt went to collections.  Can they sue?  ( Perhaps, he actually fears that the student loan provider will sue despite student loan being paid fully with credit card. )

Anyhow, the OP needs to return and clarify what (s)he is asking.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 23/December/2016 at 6:06am
THis is funny. THere si nothing in the person;s message that suggests his credit card is the issue. It is a student loan. Clarity It is definitely required, yes. But based on the actual question this person is asking if the student loan can be taken to legal proceedings - or barred. The person said the loan was "paid off" using a credit card.  If it is paid off then there is nothing to litigate - or bar. 

1) Credit items can be reported for the time in which they can be reported, which is based on two things - credit bureau policy or provincial reporting law. In Ontario the law says 7 years, but Equifax holds their policy to 6 years from the day it was first reported as a bad debt. 

There are people who have student loans that have been in default for a decade, are paying them slowly, and yet have no trace of it in their credit report. THat is because it drops off after 6 years from the day in which it was first reported as a bad debt. 

Anyway, answering the question as it is asked is what I think is the best approach here. Otherwise, the arguing ensues between you and I because this is what you like to do. 


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

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Post Options Post Options   Thanks (0) Thanks(0)   Quote Royal-NCO Quote  Post ReplyReply Direct Link To This Post Posted: 23/December/2016 at 9:10am
Johnny, read the title:  Credit Card Debt Gone Collections


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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 23/December/2016 at 9:58am
That I did not see! My apologies mate! Seriously.  

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Post Options Post Options   Thanks (0) Thanks(0)   Quote Royal-NCO Quote  Post ReplyReply Direct Link To This Post Posted: 23/December/2016 at 10:44am
Originally posted by Johnny Johnny wrote:

That I did not see! My apologies mate! Seriously.  


Yes, it sounds to me like he did exactly what I did.  I used my credit card to clear the provincial portion of the student loan.  I managed this because my job at the time allowed me to use my credit cards to buy product for customers, and then the customer would refund me at the door with cash ( liquor delivery job).  Over a period of a month I loaded up 12K of cash off my credit cards, and then threw this at my Ontario student loan (provincial portion) and cleared it in full.  However, this left me with a 12K credit card debt at 19.95%.  Fortunately, I had done a ton of good work to rebuild my credit, and the bad student loan trades had aged off.  Therefore, I qualified for a consolidation loan at 8% which I just paid off in full a month ago.

I went through all of this to avoid a loan that can never be statute barred, and can in theory reappear on my credit report indefinitely, as it bounces from collection agency to collection agency.

Anyhow, for the OP, he was likely not so lucky, and his credit card debt instead went to collections because he couldn't maintain it at the high interest rate.

If this is true, the correct answer for him is that his credit card debt is likely statute barred if he has made no payments in two years, but that varies from province to province, and there are several gotchas with the statute barred issue.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 23/December/2016 at 1:02pm
Yes. One of those gotchas is the way creditor's rights lawyers use that "from when the claim was first discovered ...". That is something creditor's rights lawyers play around with quite well. 

Get this. The BC government will gaff an income tax rebate and if a borrower does not dispute it, then it is deemed an acknowledgement by the BC legal and government thus extending the limitation period. There is jurisprudence in BC to that affect. 
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

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