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alrm_gurl View Drop Down
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    Posted: 10/March/2014 at 9:22am

I left post-secondary in 1998 and in 2000 settled all outstanding debt with a consumer proposal.

 
Now, 14 years later, I have collection agencies calling me about student loans (CCA and CBV).  I do not answer their calls, respond to the mail, or in any other way acknowledge them.  Not to mention that they are both calling for RBC, which is who I dealt with when I did have loans (at least I don't remember having any other bank involved).
 
I have been all through the forums on the internet and do not understand all the 'risk portion', 'barred', 'put-back', or any other terms that have been thrown around.
 
I want to know how can they call me 14 years later? 
 
Can someone please explain this to me in very plain English?  I am not an idiot - I just need a logical explanation.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 10/March/2014 at 8:36pm
Back in those years there were quite a few changes in student loans.... so there were different programs....
- guaranteed bank loans (from 1964-1995),
- risk-shared loans (from 1995-2000)
- national student loan centre direct loans (from 2000 on)
For each period, there was a provincial and federal loan.

If you defaulted on a risk-shared loan, the banks were allowed to sell 5% of their portfolio back to the government, who would then try to collect.  I believe this is what they called a 'put back'.

In 1997 the bankruptcy laws were changed so that student loans were not discharged from bankruptcy   for 10 years after ceasing to be a full time student.  I believe with the changes, proposals did not wipe out the debt even if the proposal was completed.  The law was changed recently to 7 years and 5 years in the case of hardship.

I don't know the full details but basically federal laws state that if a debt is more than six years old and there is no payments made and no acknowledgement of the debt, (and perhaps a few other rules apply) then the debt becomes 'statute barred'  Say you borrow $100 from a friend and then he forgets about it and then 7 years later remembers and tries to collect the debt and interest.  The loan would be statute barred.

Now, your loans may be statute barred, but that doesn't stop RBC and CBV from trying to collect it.

Do not under any circumstances send any letter or acknowledgement of the debt.  I suggest you speak to John at CFWGroup.ca     He can help sort this out.  He does charge fees, but I think it is worth it for what he does.

Also, make sure you don't have any funds in an account at RBC.  They would have a right of 'offset' and could take money out of your account. 

The collection agencies are not to be trusted. Do not under any circumstances act on any advice they give you.... 

Hope this helps...

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Mark O'Meara

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alrm_gurl View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote alrm_gurl Quote  Post ReplyReply Direct Link To This Post Posted: 11/March/2014 at 9:49am
Thanks Mark.

I don't answer any calls from any collection agency or acknowledge the debt.  They somehow got my cell phone number - but I am not sure from whom as not even my current boss has my number.  I am at least smarter on that now.
 
Another question - is it normal for 2 different agencies to be collecting the same account?  I had a letter re this amount in January of this year and then a letter from another agency dated March of this year. 
 
 
 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 11/March/2014 at 9:02pm
They may have changed agencies since the letter was sent in January.
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tkarmy View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote tkarmy Quote  Post ReplyReply Direct Link To This Post Posted: 21/March/2014 at 1:32pm
Yea I wouldn't touch that with a 10 foot pole... answer no calls, ignore the letters.
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