This website is a testimony to the problems Canadian Student Loan borrowers experienced from approximately 1996 to 2008 and until their loans were paid off.

The privatization of the Student Loans system by the Chretien and Martin Liberal governments broke the system and defaulted thousands of borrowers who were trying to pay their loans. There were even stories of suicide due to the harassment of borrowers.

Read the report that I prepared back in 2007 here. Canada Student Loans-The Need for Change Fortunately the new Conservative government at the time revamped the program and fixed the system for new borrowers, but borrowers under the previous program were left with ruined credit and continued harassment from debt collectors.

I call on the Canadian Government to apologize to the borrowers affected by this fiasco and make amends.

Unfortunately the Liberal government is again clobbering the Education system with their upcoming changes to International Student Visas. Yes, there's a problem, but instead of a well thought out plan, they have pulled the emergency brake on the train causing a derailment. This has introduced unprecedented instability for both private and public education institutions who serve both international and local students.

Universities can't plan. I've heard of courses being cut because the government has no process in place for universities to send the newly required acceptance letters to the government.

This means that students who have been accepted can not attend courses that start in the summer 2024 semester. With cut sections, current Canadian students will have trouble getting courses, and may have to switch to part-time which changes their enrollment status and might trigger repayment of their loans or ineligibility for funding. I've seen this before. It wreaks havoc on the student loan borrowers.

Again, the Liberal government has messed up the education environment. Will the new system needed in a rush for the acceptance letters be the new Arrivecan scandal?

I call on the government to implement a slower phased in approach and delay the requirement of the acceptance letters until a process is in place to submit these letters.


  New Posts New Posts RSS Feed - Being sued by federal government
  FAQ FAQ  Forum Search   Register Register  Login Login


Forum LockedBeing sued by federal government

 Post Reply Post Reply
Author
warren_g View Drop Down
Newbie
Newbie
Avatar

Joined: 04/October/2016
Location: Toronto
Points: 2
Post Options Post Options   Thanks (0) Thanks(0)   Quote warren_g Quote  Post ReplyReply Direct Link To This Post Topic: Being sued by federal government
    Posted: 06/October/2016 at 6:09am
I am being sued by the federal government for outstanding student loans and I was recently served with court papers. I have been out of work for some time and was unable to make payments. I am unsure as to what to do.

Basically, what are my options once I have been served?
I do owe the amount stated but am presently unable to make any payments do to my employment situation. If I file a statement of defence stating that, does the court not just rule against me either way? In that case is there even a point in filing the statement of defence, since the outcome will be the same regardless?
Also, how long does this whole court process usually take?

Any advice on any of this is welcome.
Thanks

Back to Top
Sponsored Links


Back to Top
SolveStudentDebt View Drop Down
Moderator Group
Moderator Group
Avatar

Joined: 05/November/2003
Location: Canada
Points: 5996
Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 08/October/2016 at 5:11am
The government is seeking judgment to secure their best interest. Obviously there is a limitation issue approaching if your loan was taken out on or before 2008. 

They want you to acknowledge the debt of course, which is done so involuntarily because of the service of that SOC on you. Unless of course it is already statute barred and perhaps they are trying to trick you into an admission of liability. If you think there is a limitation issue then you can defend on that basis and then you have to quickly prove it. Not an easy task for just anyone and anyone. 

At the end of the day, they government will acquire judgment unless of course you can prove that there is no merit or ground in their case, or a limitation issue, or valid dispute showing the claim to be erroneous or incorrect.  

We provide mediation services to student loan borrowers in your predicament and the the outcomes are generally opportunistic in the opening of relief benefits. Your case though depends on a number of factors based on history and current. Being as you are unemployed certainly gives your case in this regard some strength. 

If you were a client of ours the approach would be as follows: 

1. Take the litigation by justice department and cool it down through mediation. By cooling it down it means seed and incubate a working relationship with the office of the attorney general and the office that is responsible for doing this - CRA Legal Services. Once that is established then you are in much better shape. 

2. Seek out opportunities and benefits of relief based on the facts of whichever case you have for them. 

If you want to be back on their "good side" it takes a lot of work. This is what we do for you as cited above. 

The process of litigation depends on the type of court action, and what the government's intention is in your case. The government of Canada works towards obtaining judgments with the help of their private law partners in every province. You have anywhere from 20 or more days depending on the case to file a defense, otherwise default judgment will be applied for by the government and obtained. With what I cited above, the goal would be to negotiate hold or stay of proceedings so that a plan and solution can be built. 

When it gets to this point you really should have professional help. 

Hole this helps. We can help you if you need. 

Best!  


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

solvestudentdebt.com
Back to Top
Syne View Drop Down
Groupie
Groupie


Joined: 19/February/2009
Points: 57
Post Options Post Options   Thanks (0) Thanks(0)   Quote Syne Quote  Post ReplyReply Direct Link To This Post Posted: 20/October/2016 at 2:10am
So I can sue someone for a loan that's stats barred and if they don't defend, I automatically get a judgment?

That's pretty sweet. What's stopping companies from just doing this randomly to see what sticks?
Back to Top
Corven View Drop Down
Newbie
Newbie
Avatar

Joined: 02/January/2017
Location: Saint John
Points: 1
Post Options Post Options   Thanks (0) Thanks(0)   Quote Corven Quote  Post ReplyReply Direct Link To This Post Posted: 02/January/2017 at 5:49am
 I wish they would sue me! LOL! Seriously! I have been dealing with this nightmare for over 15 years, and it just gets worse and worse... I will never allow my children to deal with these loan sharks and ALWAYS warn people about the risks of Canada student loans. 
  My loan went into collections while I was still attending school Full Time,and the provincial loans are the only ones to not make amends for this careless mistake. The bank part of my loan and federal part have acknowledged this, but the provincial will not, and continue to take my Income Tax returns... I have requested they sue me several times, but they will not as I have letters from collection agencies, financial institutions as well as Training and Development support workers, acknowledging that these loans were mishandled negligently and carelessly...To make matters worse, I never seem to be able to talk to the same person twice, and the information is constantly changing. I went from owing a principal balance of 3500$ to almost 7000$...and this is not including interest.
   They say that onus is on us to call, but according to anyone I have sopken to in relation to legal proceedings, the government is bound by the SAME RULES AND REGULATIONS AS ANY OTHER LENDER... If they change anything in regards to the contract or send your info to other parties, I WAS TO INFORMED PRIOR TO THIS CHANGE, and never was...For years I was told I owed nothing, and the Credit Bureau shows this...Then out of the blue,6 years later,  my tax return is gone, and NOBODY knows why!! After weeks of playing phone tag, They narrow it down to Provincial Student loans...After speaking with them, i's clear that the gentlemen on the phone has absolutely no understanding of the rules or regulations in place for these loans, and is uncertain himself how the matter has gotten this out of hand...But I can easily pay to clear up this mistake if I would like to forward money to his department!!! LOL!! 
   The collection agencies and financial institutions that I have dealt with, indicated this would simply be washed out, as this IS NOT the contract I had entered into with the government. They broke their contract and its just a matter of time before someone brings this to the media's attention...Sure, you have the odd clown that's gonna say we owe the money and should just pay it...Sure! I do owe the money, just not nearly as much as they claim, and if you want to really see how bad it it, just google "Canada Student Loan Nightmares"....When there's over 40 000 problems and climbing, you kinda have to wonder how they gotten this far...In a court room, their information is unreliable, confusing to follow and judges frown upon poor lending practices....Especially from government facilites who lack the means, know how and resources to secure any of its numbers...
You can probably beat this, with some simple searching and they're just hoping you wont show up or cave like traffic court...Once they see that you are going to cost them money to put effort into a case they know will cost more money to win, theyll probably drop it altogether....
   I wish they would sue me....

Back to Top
Royal-NCO View Drop Down
Groupie
Groupie


Joined: 17/March/2010
Points: 244
Post Options Post Options   Thanks (0) Thanks(0)   Quote Royal-NCO Quote  Post ReplyReply Direct Link To This Post Posted: 02/January/2017 at 6:58am
I wish you luck getting them to admit their mistake.  I never succeeded.  In the end, I paid up on the provincial loan so that I wouldn't have to deal with the damage to my credit report for the rest of my life on a provincial loan that can never be statute barred and loves to reappear indefinitely on your credit report.   This is the game they play.  This is what they count on - people like me who end up taking it up the butt for no other reason than because I wanted to move on with my life for the sake of my kids.

Simply stated, it is a screwed up system and I am now very carefully saving into the RESPs for my kids so that they can enjoy all the grants without the hell of borrowing and repaying the money.
Back to Top
SolveStudentDebt View Drop Down
Moderator Group
Moderator Group
Avatar

Joined: 05/November/2003
Location: Canada
Points: 5996
Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 02/January/2017 at 7:33am
Royal, do you still have any risk-shared or federal guaranteed you need a limitation issue confirmed on? I believe you werr seriously duped by the provincial gov as if I recall. Did you enter into the provincial contract before or after April 1, 2004? 
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

solvestudentdebt.com
Back to Top
Royal-NCO View Drop Down
Groupie
Groupie


Joined: 17/March/2010
Points: 244
Post Options Post Options   Thanks (0) Thanks(0)   Quote Royal-NCO Quote  Post ReplyReply Direct Link To This Post Posted: 02/January/2017 at 8:21am
When the SHTF, back in 2006, realizing that my credit had been destroyed and I couldn't get a job in my field with bad credit, correctly or not I said screw it to the whole damn thing.  I had two sets of loans, and you'll have to forgive me for my lack of precision on the dates because I am really starting to lose track in my memory on the first loan.

1) Federal and Provincial loans borrowed from BCSAP via a bank.  ( 1995 ??)
2) Federal and Provincial loans borrowed from OSAP ( 2001 to 2005).

Ontario ( provincial portion) loan repaid in full.  There is no longer any holds with CRA on either the provincial or the federal portion.  I am receiving all refunds and credits.   

I continue to debate whether or not I want to acknowledge the likely statute barred federal loan through OSAP.  My understanding is that the BC loans are extinguished.  However, the statute barred/extinguished state is simply assumed and not proven.

Realistically, enough years of silence have gone by that it is very unlikely that they could have kept any of these loans alive, but ....

Back to Top
Royal-NCO View Drop Down
Groupie
Groupie


Joined: 17/March/2010
Points: 244
Post Options Post Options   Thanks (0) Thanks(0)   Quote Royal-NCO Quote  Post ReplyReply Direct Link To This Post Posted: 02/January/2017 at 8:24am
To be clear, I wasn't so much duped on the provincial portion of the OSAP loans.  I made an active choice to clear up the one portion of the loan that I am certain can nail me for the rest of my life due to its lack of limitation period.
Back to Top
SolveStudentDebt View Drop Down
Moderator Group
Moderator Group
Avatar

Joined: 05/November/2003
Location: Canada
Points: 5996
Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 02/January/2017 at 9:23am
Just know this - if the loan contract was made beforer April 1 2004 then ther prior limitation law may apply in cases pof Ontario loans. Since you paid it, it would be a difficult argument to bring to the table of course. 

If you want me to get you some confirmation of barring and limitation issue on the two I can do that for you. Text me or email me. I owe you one. :) 
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

solvestudentdebt.com
Back to Top
Royal-NCO View Drop Down
Groupie
Groupie


Joined: 17/March/2010
Points: 244
Post Options Post Options   Thanks (0) Thanks(0)   Quote Royal-NCO Quote  Post ReplyReply Direct Link To This Post Posted: 02/January/2017 at 9:47am
Approximately 18 months ago when I used my credit card to clear the provincial debt, I approached the Canada Student debt issue as well, by phone, not in writing.  I received a statement of account from them together with a letter that acknowledges that the debt has been removed from active recovery.  Given that they are not withholding tax refunds or credits, I choose to now let sleeping dogs lie.

I appreciate your offer to confirm this, and no, you don't owe me anything.  We both misunderstood each other, and both made mistakes.  So, let forgive and forget.

As for the Ontario portion of the loan, I realized at the time this 2004 issue.  However, I rationalized that because I had enough money to deal with it, it simply wasn't worth the risk to my greatly improving financial situation.  I wish you could understand how much I have improved my life simply by improving my credit. This is something that I will do everything to protect, and didn't want to risk it with the Ontario loan.

Think of it like this:  if at one time you had only $750 secured credit card, and now you had 100 times that in available unsecured credit, would you risk it by clinging to your pride and sense of self-righteousness?  Better to just clean up the one piece that has a high probability of biting me so that I could move on with my life, and maybe buy a house etc.  Last year, I bought a new car at 0.5%.  Only four years ago, the best I could do was 25% for a 10 year old used car and a 5K loan.

Yes, I could have likely fought the Ontario portion up to at least 2004, but was it worth the risk?  I don't think so.

Back to Top
SolveStudentDebt View Drop Down
Moderator Group
Moderator Group
Avatar

Joined: 05/November/2003
Location: Canada
Points: 5996
Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 02/January/2017 at 10:38am
This is a good rationale and way of safeguarding yourself. The financial community frowns up on it because it limits them. 


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

solvestudentdebt.com
Back to Top
Royal-NCO View Drop Down
Groupie
Groupie


Joined: 17/March/2010
Points: 244
Post Options Post Options   Thanks (0) Thanks(0)   Quote Royal-NCO Quote  Post ReplyReply Direct Link To This Post Posted: 02/January/2017 at 11:45am
Originally posted by Johnny Johnny wrote:

This is a good rationale and way of safeguarding yourself. The financial community frowns up on it because it limits them. 


It isn't a licence to avoid the debt altogether.  I feel morally obligated to the purchasing power of the money I originally borrowed.  I am willing to repay the original amount owed adjusted for inflation.  However, because I was denied interest relief programs etc., I refuse to pay back any amount of interest that would otherwise allow them to profit.

So, having greatly improved my credit so that I have credit available to me that is twice my annual income, the next goal is to gradually increase my income and savings.  My first obligation is to my wife and kids.  Once I have increased savings and income, I can approach Canada Loans again and offer to repay the principle adjusted for inflation.  They can take it or leave it.  Its up to them.
Back to Top
SolveStudentDebt View Drop Down
Moderator Group
Moderator Group
Avatar

Joined: 05/November/2003
Location: Canada
Points: 5996
Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 03/January/2017 at 5:46am
Oh I know.  In your case the opportunity to participate effectively was snatched away from you. This happened to so many people in the risk-shared years. as an advocate for the people (as you are) we do see things the same. 

The financial industry and consumer population have both mutual interests  - but they turn after a problem occurs for a consumer.  The old method of business takes over, of which is counter productive and antisocial. 

Approaching CRA and Justice Canada after a limitation issue occurs is a dangerous move though. If it is barred - it is actually written off and archived. Bringing it out and breathing life back into it is your danger.  I can help you get past all that though whenever you are ready. Just give me a few days' notice. I got your back. 
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

solvestudentdebt.com
Back to Top
 Post Reply Post Reply

Forum Jump Forum Permissions View Drop Down

Forum Software by Web Wiz Forums® version 12.07
Copyright ©2001-2024 Web Wiz Ltd.