If I settle will my loan show up on my credit repo

I have an old Scotiabank student loan which is with ARC. I have been making small monthly payments on the loan, but now I have the money to settle the debt (currently being offered a $4000 settlement on a $17000 student loan). The loan is not showing on my credit report. If I do pay them the offered settlement, will it show up on my credit report? I will be applying for a mortgage in the next few months and don't want anything negative showing up on my report.

My student loan dates back to 1999. I was paying on it for a year or so, but after some unforeseen circumstances (which eventually led to a bankruptcy in 2001, the loan was sent to collections. I don't know if the loan was ever reported after it went to collections, but I have been making monthly payments to ARC for about 3 years and it hasn't been reported since then. Prior to that the loan was with CBV collections and I was also making monthly payments to them.

Yes but you have to be careful with this sort of thing. agencies are throwing around all sorts of attractive offers. THeir goal is to see how quickly you come up with money and then they have something to sink their teeth into. It is an age old collection tactic. They can come back and say "well, our client won;t accept it, but they will accept $10,000, and you can give us your $4000.00 and make payments on the other 6 ...." I see this sort of tragedy all the time.

Yes, you should immediately do that before anything. Even before you go scrape up any money. THat way you are not wasting your time and putting yourself at risk.

Whether you settle this student loan with ScotiaBank or with ARC or with CBV collection agencies, one of the conditions of being a member of either credit bureau be it Equifax or TransUnion is that all collections must be reported. This includes the monthly payments that you are currently making to ARC.

You stated in your original post that you had made an Assignment in Bankruptcy in 2001 and, of course, included this student loan in the bankruptcy. However, because your "end of study date" was less than 7 years from the date that you made an Assignment in Bankruptcy as required by Subsection 178(1) of the Bankruptcy and Insolvency Act ( BIA ), this student loan survived the bankruptcy. While you did not indicate in your post, I will assume that your Discharge was 9 months after you made an Assignment in Bankruptcy. After your Discharge, the Office of the Superintendent of Bankruptcy ( OSB ) would have reported this to both credit bureaus and this would remain on your Credit Report for 6 or 7 years depending upon your province of residence.

If you review your current Credit Report, you will notice that the bankruptcy is not shown. You will also notice that there is no listing for ScotiaBank under "TRADE" accounts and no listing for ARC or CBV under "COLLECTION" accounts.

HERE'S WHY

Your bankruptcy was "purged" after the 6 or 7 year time period.

When you defaulted on your student loan with ScotiaBank, that was reported to both credit bureaus. The account with ScotiaBank will then remain in the "TRADE" section of your Credit Report for 6 years from the "Original Date of Default with the Original Creditor". After this date, this account will then be "purged" from your Credit Report. If this account with ScotiaBank is assigned to a collection agency or agencies for recovery or is sold to a debt buyer, it will also appear in the "COLLECTION" section of your Credit Report with the "Original Date of Default with the Original Creditor". That means that the account listed in the "TRADE" section and this account that has been assigned to a collection agency or agencies or sold to a debt buyer that is listed in the "COLLECTION" section will have the identical "Date of Default" and all of them will be "purged" at the same time.

Once an account has been "purged", whether it appears in the "TRADE" section or the "COLLECTION" section, it can NEVER be re-listed on a Credit Report. This includes Federal student loans that are "statute-barred" even if a student loan borrower has acknowledged the debt after it became "statute-barred" thereby re-setting a further 6 year limitation period. In other words, it's like water over the dam....................GONE FOREVER.

As I indicated earlier, all members of a credit bureau MUST report all collections received whether it is made on behalf of a "TRADE" account or a "COLLECTION" account. However, if an account has been "purged", the collection reported for the "purged" account will NOT appear on a Credit Report.

And now you know why your bankruptcy, the ScotiaBank account, the ARC and the CBV collection accounts do not appear on your Credit Report and never will again. If you are considering applying for a mortgage in the future, you now have "peace of mind" knowing that your defaulted student loan will not be an impediment for approval.

I did check my equifax credit report a few weeks ago and there was no inquiries from any collection agencies. I think there may be an old one on my transunion report, as something did show up when I first started to apply for credit again. When I got the call from ARC last week, he was reading off a copy of a credit report to me, but it was a report from last year.

For as many years as I can remember ( at least 20 years ), both Equifax and TransUnion have permitted collection agencies and debt buyers to make "hard" inquires for debts that were either "statute-barred" or that had been "purged" from a Credit Report. All the Credit Reporting Acts of the Provinces and Territories clearly state that this practice is illegal, however, the legislation was never enforced.

In 2010, a consumer residing in B.C. requested a copy of her Credit Report from both Equifax and TransUnion and noticed that 3 different collection agencies had each made an inquiry on a "statute-barred" debt. She contacted both Equifax and TransUnion and requested the removal of these inquires to which both credit bureaus refused to comply citing that all the Credit Reporting Acts required a credit reporting agency to maintain a list of all inquiries for a minimum period of 1 year and by removing these inquires would be in contravention of the legislation.

She then contacted Consumer Protection BC and lodged an official complaint stating that this practice of making an inquiry on a "statute-barred" debt was in contravention of the B.C. Business Practices and Consumer Protection Act ( BPCPA ). Consumer Protection BC then examined the provisions of this Act in conjunction with the provisions of the B.C. Personal Information Protection Act ( PIPA ) and found that there was a conflict between the two Acts. PIPA provided for the inquiry but BPCPA did not. PIPA also provided in its legislation that if there is a conflict between PIPA and any other Provincial legislation that the provisions of PIPA would apply.

After much deliberation and examination of these 2 statutes, it was determined that collection agencies and debt buyers could comply with both BPCPA and PIPA ( i.e. make an inquiry on a "statute-barred" debt or a debt that had been "purged" ) providing the inquiry was a "soft" inquiry which only appears on a Consumer Disclosure Report and not on a Credit Report. Both Equifax and TransUnion along with the 3 collection agencies were notified of the decision of the Consumer Protection BC findings and were ordered to change their reporting practices. Equifax complied with the Order but TransUnion did not.

On April 24, 2012, a COMPLIANCE ORDER was issued to TransUnion and also filed in the B.C. Supreme Court thereby giving it the same effect as an Order issued by a Supreme Court Judge. TransUnion was given 30 days to comply with the Order. TransUnion did not comply nor did they file an objection to the Order. Instead, TransUnion filed for a Judicial Review in the B.C. Supreme Court. No date has been set for the Judicial Review

A Judicial Review is an application to a senior court such as a Superior or Supreme Court for a review of the particular legislation to determine if its provisions can be legally enforced.

In the meantime, Equifax shows all inquiries from collection agencies and debt buyers as "soft" inquiries and they will only be reported on a Consumer Disclosure Report. A Credit Report issued by Equifax and available to third parties will NEVER show an inquiry from a collection agency or a debt buyer.

On the other hand, TransUnion will continue to report inquiries from collection agencies and debt buyers as "hard" inquiries on both the Consumer Disclosure Report as well as the Credit Report even if the inquiry pertains to a "statute-barred" or "purged" debt. These "hard" inquiries shown on a Credit Report will be available to third parties.

　

I believe that the inquiry that was on my credit report last year was a Transunion report, but I'm not 100% sure. I'm so glad this site is available to us. If not I'd be believing everything the collection agencies are telling me!

Can the collection agency actually "force" me to come up with a lump some payment, or is this just a way for them to make more money. I know the payments I've been making on the account are small, but it is really all I can afford. Can they take further action against me like they threaten to do, or am I okay as long as I continue to make the monthly payments?

I asked ARC to send me a letter with the settlement on it. She asked me if she could fax it to me, but I don't have access to a fax machine. She said she will mail it out, but I probably won't get it in time as she says this offer from Scotiabank expires on Oct. 15th. I told her that I don't think I will be able to come up with the $4000 which they are offering as a settlement, and she gave me the phone # to Citifinancial and told be to apply for a loan there. I told her I couldn't afford to pay them $200 a month and 28% interest on a loan. She told me it would be in "my best interest" to find the money, and she expects a call back from me in a day or two. I read somewhere that you don't even have to return calls from a collection agency, that you can demand all correspondence be done through the mail. Is that true?