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bluemusickid
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Joined: 28/March/2012
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Topic: CSL Rehabilitation on Credit Report Posted: 10/April/2012 at 4:58am |
I found out that I'm eligible to get my loan transferred from CRA collections to NSLC. I'm just wondering whether I should actually apply for this as I'm not seeing the benefits of it. Sure, I'll be eligible to get my tax refund and apply for future student loans, but I don't mind having tax refund money go to student loans and I have absolutely no plans to take out more student loans!
Does anyone know how will the rehabilitation be reported to the credit bureaus? Currently, my combined Canada-Ontario loan shows several 90+ days of missed payments, but those age to 6 years and fall off very soon. So it might be better just to keep the loan with CRA collections.
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administrator
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Joined: 25/January/2003
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Posted: 10/April/2012 at 5:38am |
Being out of default means that you might be able to apply for the Repayment Assistance Program should at some time you need it. I think it is better to have your loans with NSLSC than with the CRA.
I'm not sure about the Credit reporting issues, perhaps someone can answer that...
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Administrator Mark OMeara Author of Let Go and Heal: Recovery from Emotional Pain https://LaughSingWrite.com - http://bit.ly/heal2024
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bluemusickid
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Posted: 10/April/2012 at 7:14am |
Forgot to mention that CRA doesn't report anything to the bureaus!
It seems like a mixed bag, because NSLC will report payments and allow me to build good credit whereas keeping it with CRA will allow me to have unreported debt and potentially better mortgage down the road.
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footloose
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Joined: 21/February/2012
Location: Blyth ON
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Posted: 11/April/2012 at 1:37am |
It is the policy of the Canada Revenue Agency ( CRA ) that when a defaulted student loan is assigned to them for collection that this information is not reported to either Equifax or TransUnion. As a result, when a student loan is subsequently rehabilitated and is later returned to the NSLSC, that too is not reported to either Equifax or TransUnion.
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administrator
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Posted: 11/April/2012 at 3:48am |
But will the NSLSC report it when they send it to the CRA?
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Administrator Mark OMeara Author of Let Go and Heal: Recovery from Emotional Pain https://LaughSingWrite.com - http://bit.ly/heal2024
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bluemusickid
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Posted: 11/April/2012 at 4:00am |
footloose - CRA will not report a returned loan to NSLSC; but
NSLSC has said that they will report monthly payments to TU/Equifax once it goes back to them
admin - after the loan was transferred to CRA, NSLC did report account as closed/transferred
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kenny
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Posted: 15/January/2013 at 4:15pm |
First time poster, I greatly appreciate all the advice that's given on here, it certainly makes you feel less alone!
I'm in a very similar situation to the one described here. The federal portion of my loan was transferred back in 2009. On the Equifax report, it's listed as "transferred and sold" with a 0 balance. I've been told by a couple friends at the bank that this basically means I won't be able to secure a mortgage/credit card as this is the only credit item I've ever dealt with.
I'm currently leaning towards rehabilitating my loan (interest accrued + 2 months of payments). My question would be what would happen to the record currently on my file? If placed back in good standing, would it show that it was previously in default? Would they change the date of last activity to 2013 and mess up my credit for the next 7 years?
Any advice is greatly appreciated. Thanks in advance!
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SolveStudentDebt
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Joined: 05/November/2003
Location: Canada
Points: 5996
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Posted: 16/January/2013 at 3:00pm |
If the student loan is rehabilitated, and the loan provider reports to the bureau, the item has to be reported correctly.
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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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kenny
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Posted: 18/January/2013 at 6:09pm |
Let's assume that it gets rehabilitated and reported correctly. Will all negative records (essentially missed/late payments prior to default) be wiped clean 6 years from 2009, or 6 years from the rehabilitation date?
Thanks again.
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SolveStudentDebt
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Posted: 20/January/2013 at 2:21pm |
Ther limitation period in respect of credit reporting is 6 years, as per the policy of Equifax. Trans Union might have a similar policy in place. Inquiries remain for a max of 3 years. As for previous delinquency patterns (30,60,90, 120 day narratives), I believe the drop off after a short while after it is brought up to date and a satisfactory payment history is established. That is my understanding.
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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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Madmorrigan
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Posted: 21/January/2013 at 2:12am |
This is incorrect.....both agencies have an internal policy to keep the last 5 inquiries on your report. I learned this after fighting with both of them to remove inquiries that were over five years old. They will not be removed, no matter how much you badger them. The only time they will disappear is when you have a new inquiry to replace the old ones.
The same goes for negative information past 6 years--oh, sure....they SAY they'll remove it, but they won't. They explain it as "a more complete picture of your credit history". TransUnion, specifically, states their policy is to keep any information, positive or negative, on your account for up to 20 years.
Sorry to burst bubbles, folks....but we're all screwed in perpetuity and there is nothing we can do about it. I even wrote the Ministry of Consumer and Business Services and they basically said there was nothing to be done. Awesome.
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emerald
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Posted: 21/January/2013 at 10:26am |
My experience mirrors this. Equifax refused to take off the old hits so I just put new ones on.
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philbain
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Posted: 21/January/2013 at 5:09pm |
The guys over at www.canadian-money-advisor.ca may be able to help you through the steps of clearing your credit report up. I'm pretty sure that we have laws regarding credit reporting and with the right steps you can polish your report up.
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SolveStudentDebt
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Posted: 22/January/2013 at 7:28am |
Credit reporting law says that inquiries are only allowed to remain for 3 years. Policies of the private institution do not supercede the law. If they give you grief at the private level then you have to invoke the consumer protection and reporting law. You have to look at the consumer protection and reporting law in your province.
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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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kenny
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Posted: 22/January/2013 at 10:47am |
Thanks for all the useful information.
The accrued interest + 2 months of payments were paid in a lump sum last Thursday. I called CRA today to verify that they've processed the payment to the account, then followed that up with a call to the CSLP officer (transferred via NSLSC). He said to expect a letter in the next week or two confirming that they have recalled the account from CRA. I asked what would happen on my credit report, and he said that negative tradelines would exist until the 6 year period expires.
On the topic of hard inquiries, I noticed there was an inquiry from Total Recovery Credit back in 2009/Jan. The gov't had previously lost my cheque (yet somehow cashed it) for the provincial part of my loan, and the account was sent to collections as a result. I guess I should get a hold of Equifax to remove it, though based on the experiences above, it might be a hassle. Is it worth it?
Further updates to come...
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emerald
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Posted: 23/January/2013 at 3:59pm |
Johnny wrote:
Credit reporting law says that inquiries are only allowed to remain for 3 years. Policies of the private institution do not supercede the law. If they give you grief at the private level then you have to invoke the consumer protection and reporting law. You have to look at the consumer protection and reporting law in your province. |
I sent a letter quoting the statues and laws here. This is what they got back to me with: " inquiries from credit grantors are automatically purged
three years from the date of inquiry, but our system will retain a
minimum of five inquiries".
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administrator
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Posted: 23/January/2013 at 7:50pm |
Privacy Commissioner compliant? I think this is a no brainer for them to rule on!
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Administrator Mark OMeara Author of Let Go and Heal: Recovery from Emotional Pain https://LaughSingWrite.com - http://bit.ly/heal2024
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Madmorrigan
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Posted: 24/January/2013 at 5:59am |
emerald wrote:
Johnny wrote:
Credit reporting law says that inquiries are only allowed to remain for 3 years. Policies of the private institution do not supercede the law. If they give you grief at the private level then you have to invoke the consumer protection and reporting law. You have to look at the consumer protection and reporting law in your province. |
I sent a letter quoting the statues and laws here. This is what they got back to me with:
"inquiries from credit grantors are automatically purged
three years from the date of inquiry, but our system will retain a
minimum of five inquiries".
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This is also the response I received and, again, the CBS pretty much said there was nothing to be done. I'm not sure how the Privacy Commissioner would have any say in the matter....?
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administrator
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Posted: 24/January/2013 at 7:33am |
Well they are storing info about you that legally should be removed. So I would think a privacy complaint would be in order.
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Administrator Mark OMeara Author of Let Go and Heal: Recovery from Emotional Pain https://LaughSingWrite.com - http://bit.ly/heal2024
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Madmorrigan
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Posted: 25/January/2013 at 2:29am |
administrator wrote:
Well they are storing info about you that legally should be removed. So I would think a privacy complaint would be in order.
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I don't think so...what they're doing is reporting an occurrence--in this case, an inquiry on our respective credit files--not reporting anything about us, specifically. The fact that someone has made a legal inquiry can't be disputed (assuming, of course, that there is a "legitimate" reason for making said inquiry). The fact that there are two entries previous to the three that are "legal" really doesn't do too much from the point of view of 'privacy', imo. Yes, they continue to bugger our credit ratings but we can't argue with the fact that they were (again, assuming) legal. If the credit reporting agencies were sending that information out to sources that have no business seeing it then yes, that would be a privacy issue. Maybe someone else has a different take on this? If a compelling argument can be made, I'm all for sending a complaint to the Privacy Commissioner...I just don't see where they would be able to do what the Ministry of Consumer and Business Services, the very entity that is supposed to enforce the laws governing the credit reporting agencies, will not do.
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