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studentmess
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Topic: Credit reporting rules - Ontario Posted: 21/April/2015 at 3:18am |
I fear my Ontario student loan may have been transferred to TCR based on a soft enquiry on my credit report.
Due to my issues with these student loans, I have made no payment ever since 2006 when my studies ended. The only payments made have been involuntary through the CRA (tax refunds etc. ) most recently this past October 2014.
Back in September of 2013, there was both a collection item and a trade item reporting on both Equifax and Transunion. Both trade and collection items aged off the report in October of that year 2013.
Given the involuntary payments from CRA tax refunds has the trade/collection been re-aged, allowing TCR to repost the collection and trade item? I know the rules are a little different for Equifax and Transunion. If you can be clear what can happen on each report that would be great. Thanks!
I am saving money and plan to pay this debt in one lump sum.
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SolveStudentDebt
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Posted: 22/April/2015 at 4:00am |
Credit reporting by provincial code (Credit reporting law) is 7 years. However, 6 years is the private bureau's (Equifax Canada) policy. I am unsure if Trans Union has that same policy, but they should to keep things aligned and respectable. If an item "has" been reported for the prescribed period of time in which it is allowed to be reported, then it has to be removed. It doesn't mean it is statute barred. However, there are limitation periods that apply to a lot of other matters other than the ability to recover debt through legal proceedings. If the Ontario government had your OSAP loan reported to the bureaus as a collection item longer than the prescribed period of time in which it is allowed to report it (Provincial reporting law = 7 years), then it is not permitted to report it again after purge. That is a common interpretation given. Now, to take this a step further, for example, Equifax Canada will purge items reported longer than 6 years in Ontario. However, the creditor's who are reporting those items are said to be legally entitled to report it for an additional year (7-year) as outlined in the provincial credit reporting law, should any make that argument. Equifax's internal policy does not supersede legislation that applies to the reporting government or creditor. Something to consider about Canadian law and their writing. They either don't make sense, or they bring prejudice or undermining to another applicable law, as a condition called "overlapping".
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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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studentmess
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Posted: 22/April/2015 at 11:23am |
Thanks for your reply, Johnny .
Sure enough I received a letter from TCR demanding full payment on my Ontario student loan.
I am very interested in this new Rehab program, but I am very concerned about the potential damage to my credit report. I am going to assume that the original trade line and collection item have properly aged off my report based on your description above. However, does new payments to the loan reage the trade and collection item allowing it to be reposted to the credit report?
I'd love to get this under control once and for all. I can afford reasonable payments now. However, destroying my credit again will destroy my capacity to pay the debt and will put me right back where I started.
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studentmess
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Posted: 23/April/2015 at 2:50am |
I called TCR today, informed them of my past unwillingness to cooperate due to errors within the system, and requested the rehab program. No application procedure, yet, just a directive sent to the government. I'll be receiving notice of the terms of the rehab agreement in the next week or so.
Apparently, this collection agency doesn't have the authority to directly mark my credit report on this particular loan..
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studentmess
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Posted: 28/April/2015 at 2:37am |
Apparently, there is no limitation period for credit reporting of crown debt where no statute of limitation applies.
In other words, because the ontario provincial debt has no statute of limitations for legal action, it also has no limitation for reporting to the credit bureau. It can sit there forever until it's paid in full.
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SolveStudentDebt
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Posted: 28/April/2015 at 6:25am |
That is not true. Credit reporting law cites 7 years in Ontario. That is a provincial law. Limitation law does not apply to credit reporting law. If this is an interpretation or opinion by a government official, it is irrelevant. A ruling on the matter would be required. You can't just mesh one law into another and call it "fact". Who told you this? It is important for ANYONE dealing with government agents and civil service to get the details of who they are talking to, and note what is being said. Many deceitful and egregious practices originate from those levels, especially the private sector who is hired or contracted by them.
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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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studentmess
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Posted: 28/April/2015 at 7:09am |
Johnny wrote:
That is not true. Credit reporting law cites 7 years in Ontario. That is a provincial law. Limitation law does not apply to credit reporting law. If this is an interpretation or opinion by a government official, it is irrelevant. A ruling on the matter would be required. You can't just mesh one law into another and call it "fact".
Who told you this? It is important for ANYONE dealing with government agents and civil service to get the details of who they are talking to, and note what is being said. Many deceitful and egregious practices originate from those levels, especially the private sector who is hired or contracted by them.
| Do you have good legal sources for credit reporting rules that I can reference and throw back in their face. 1). I called collections at the ministry level: 1-800-387-5604. 2) I was alerted by the collection agent 3) I called credit counselling - credit counselling society 4). A high profile individual on redflagdeals.com who deals with car financing at the bank level. I need a good legal source to throw back in their face. No new collection has yet been reported, but all claim it will be and that its absence is a mistake. It has already been reported since 2006 and fell off my report in October of 2013. Since then I've made MASSIVE progress, raising limits on my credit cards from 1/12th the value of my Ontario student loan to the point where I can pay my student loan six times on my credit cards which I obviously won't do due to the high interest! In my effort to rehab this loan, not only will I pay the 6 months IN ADVANCE, I will give you 18 'months in advance. I can now and I will honour my debt, despite your stupid errors NSLSC. I was freed the moment my credit was cleared and this has enabled me to now easily pay the debt. Don't shut me down now!!!!!
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studentmess
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Posted: 28/April/2015 at 7:50am |
Also Johnny, if you revive the activity date by making payments, can't they repost the collection particularly on Equifax?
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bobsmyuncle
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Posted: 30/April/2015 at 4:34am |
Johnny wrote:
That is not true. Credit reporting law cites 7 years in Ontario. That is a provincial law. Limitation law does not apply to credit reporting law. If this is an interpretation or opinion by a government official, it is irrelevant. A ruling on the matter would be required. You can't just mesh one law into another and call it "fact". Who told you this? It is important for ANYONE dealing with government agents and civil service to get the details of who they are talking to, and note what is being said. Many deceitful and egregious practices originate from those levels, especially the private sector who is hired or contracted by them.
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The Ontario Consumer Reporting Act (http://www.ontario.ca/laws/statute/90c33#BK34): Idem (3) A consumer reporting agency shall not include in a consumer report, (f) information regarding any debt or collection if, (i) more than seven years have elapsed since the date of last payment on the debt or collection, or (ii) where no payment has been made, more than seven years have elapsed since the date on which the default in payment or the matter giving rise to the collection occurred, unless the creditor or the creditor’s agent confirms that the debt or collection is not barred by statute and the confirmation appears in the file; ------------------------------------------------------------------------------------------------------------- The Ontario Limitations Act (http://www.ontario.ca/laws/statute/02l24) No limitation period 16. (1) There is no limitation period in respect of, (k) a proceeding to recover money owing in respect of student loans, medical resident loans, awards or grants made under the Ministry of Training, Colleges and Universities Act, the Canada Student Financial Assistance Act or the Canada Student Loans Act. 2002, c. 24, Sched. B, s. 16 (1); 2007, c. 13, s. 44 (1); 2010, c. 1, Sched. 14, s. 1.
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studentmess
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Posted: 01/May/2015 at 4:44am |
So the only real "opportunity", Johnny, with Ontario loans, is to pay up or declare bankruptcy. This debt will otherwise haunt you and your credit report for life!!
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studentmess
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Posted: 02/May/2015 at 4:00am |
Oh this is priceless. The ministry approved the rehab option for me. However, despite sending the collection letter to the CORRECT address, the collection agency sent the rehab approval letter to an old address. And the dumb errors begin all over again.
Screw this idea!!
Thanks to my hard work rebuilding my credit, I have been approved for a personal loan at a reasonable interest rate ( slightly higher than what I would be charged if rehabbed, but a fixed rate). Enough to clear credit cards and student loan. So, if they re-report my paid debt to the credit bureau with the ugly past history and kill my credit, the resulting lowered credit card limits won't kill me.
Good buy Ontario Student Loan!!!
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SolveStudentDebt
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Posted: 05/May/2015 at 4:41am |
The Ontario Consumer Reporting Act (http://www.ontario.ca/laws/statute/90c33#BK34): Idem (3) A consumer reporting agency shall not include in a consumer report, (f) information regarding any debt or collection if, (i) more than seven years have elapsed since the date of last payment on the debt or collection, or (ii) where no payment has been made, more than seven years have elapsed since the date on which the default in payment or the matter giving rise to the collection occurred, unless the creditor or the creditor’s agent confirms that the debt or collection is not barred by statute and the confirmation appears in the file; The reporting of a debt as derogatory is not allowed after the prescribed limitation period for reporting. The bolded text that bob put up there simply means that it can still reflect as a debt owed. That's all. All it will show is that there is a secured amount owed to the MTCU or Ontario government, just like a public record. The visual "impact" of it being in default and collection is removed after the prescribed period, thus leaving it as nothing more than public record remark. So, it is NOT reported as a default or collection item as it was the first period of years reporting as a default,
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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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bobsmyuncle
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Posted: 05/May/2015 at 6:49am |
Johnny wrote:
The reporting of a debt as derogatory is not allowed after the prescribed limitation period for reporting. The bolded text that bob put up there simply means that it can still reflect as a debt owed. That's all. All it will show is that there is a secured amount owed to the MTCU or Ontario government, just like a public record. The visual "impact" of it being in default and collection is removed after the prescribed period, thus leaving it as nothing more than public record remark. So, it is NOT reported as a default or collection item as it was the first period of years reporting as a default, |
Yes, it will reflect as a debt owed; an unpaid collection item with all relevant information including balance, collection agency if applicable, and original creditor. It is true that collection items are contained within the public records section on the credit report. However, even after the 7 years the item can be reported just like any other collection item. There is no change in "visual impact" and the actual financial impact is the same. The only real difference is that the DLA will typically represent the validation date. The credit bureau reporting act does not stipulate that these accounts must be handled differently.
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studentmess
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Posted: 05/May/2015 at 7:58am |
Johnny, i still wonder what they'd do with reporting partial payments or full payment after the prescribed period has elapsed. Anyhow, as I said , I got the loan. I'd rather pay it off and add a positive trade, instalment loan, on my credit report.
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studentmess
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Posted: 05/May/2015 at 8:00am |
The trouble also with the presence of that public record you mention is that it does stop you from major debt purchase, house, car etc., until cleared. Therefore, whether or not you've been screwed by the system, you're screwing yourself if you don't find a way to pay off your provincial debt.
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studentmess
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Posted: 05/May/2015 at 1:45pm |
studentmess wrote:
Johnny, i still wonder what they'd do with reporting partial payments or full payment after the prescribed period has elapsed. Anyhow, as I said , I got the loan. I'd rather pay it off and add a positive trade, instalment loan, on my credit report. | I guess I answered my own question: once purged it can't be posted again. Therefore, by paying debt in full, no damage will occur to my credit report. http://www.canadastudentdebt.ca/forum_posts.asp?TID=6533&title=if-i-settle-will-my-loan-show-up-on-my-credit-repo Is this correct?
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studentmess
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Posted: 07/May/2015 at 8:24am |
And the fun continues:
Just got off the phone with TCR. I was about to send them the full balance owed. However, I paused because I had not yet received the letter for the rehab. As I said earlier, they sent the first letter to the wrong address despite sending the collection letter to the correct address. Apparently, the second attempt to send the rehab letter never happened. Why? The file is "closed". Why? It had been recalled. Administrative issues. System updates. How long? Two weeks or more.
Hmmmm.... Problem! That. means I can't satisfy the deadline for the rehab. Conclusion. The rehab offer was bogus! Are they dangling bait to see who has money? Was it just unfortunate timing? The collection agent is looking into it for me.
Good thing I didn't send them the full amount owed. The money would have disappeared into thin air! Given this, I refuse to pay the collection agency. I will pay the ministry directly, however.
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studentmess
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Posted: 10/June/2015 at 8:29am |
Ontario student loan paid in full - one lump sum. Waiting now and hoping that they don't put the purged trade back onto my credit report with a $0 balance and all the old ugly history!!
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RobertRuse
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Posted: 10/June/2015 at 2:19pm |
Glad you got everything paid off
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