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Radagast
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Joined: 11/August/2005
Location: Canada
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Topic: Interest on ancient loan? Posted: 24/November/2009 at 4:27pm |
My wife got OSAP 9-10 years ago and ended up with three loans in total.
She made some payments and they've been taking her tax refunds every year. We noticed last year one of the usual names dropped off the tax lien list and only one loan now shows up applying for a mortgage so we're *guessing* that the other ones are now paid off. Unfortunately it seems to be impossible to confirm.
Anyway my question about this other loan. Are they allowed to be still charging interest even when it's to the point that they don't bother calling to collect anymore? What's the maximum amount? The only info I could find online was all for the US Student Loans (There they can charge the agreed-to interest on the loan only, and only until such time as the loan is put into written off status).
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Iknowalotofstuff
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Joined: 29/September/2008
Location: Chatham, ON
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Posted: 25/November/2009 at 5:39pm |
Yes, interest will continue to accrue. If your wife has three loans, they are likely to be a Guaranteed Federal loan, a non guaranteed loan held by the bank, and a provincial loan. All of the loans were granted under provincial or federal legislation. HRSDC / CRA has the federal loan, a collection agency will have the provincial loan and the bank risk loan.
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SolveStudentDebt
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Joined: 05/November/2003
Location: Canada
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Posted: 02/December/2009 at 10:33am |
Not if there is a limitation or unsolved discrepency, depending on the type of loan.
They can charge the interest rate that was agreed upon, which is outlined on the loan application and agreement. How long have these loans gone without activity on your part?
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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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Radagast
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Posted: 03/December/2009 at 2:51am |
The last payment other than the income tax was in late 2002 or early 2003.
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SolveStudentDebt
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Posted: 03/December/2009 at 3:33am |
Contrary to what many at Ministry of Government Services reps say, I believe there is a limitation issue pertaining to Ontario student loans. In my opinion, any loan that became due and payable before the coming into force of Ontario's new limitation ruling would still be bound by the limitations. A member here named Paulaffleck is someone I certainly would entrust if he or she has any knowledge about that. Paul's opinion would be something that I would also consider extremely valuable as well given the strength of his/her knowledge.
One thing I do know though is that the Ontario government had issued a load of those overpayment accounts to CBCL whenb they were still operational, and they were aged, quite jurassic actually. The collectors were required to advise the indebted that they were required to pay it but they were not at risk of any legal action. THese debts were owed to the Ontario government, and that campaign, I believe, took place back in 2005 and 2006. The Ontario limitation of actions anbd proceedings changes came into force in 2004. April if I recall. So, based on the above example, and in the way manner in which these debts and individuals were treated by the collection agency, it would appear that a limitation does bind the Crown, given those timelines and circumstances. It is quite clear though that the financial community will deny or object at least anyone who questions a limitation issue in the province of Ontario.
The best thing to do here in respect of anything allegedly owed to the Ontario government would be to contact their federal set-off program and see if there are any liens anchored. Be careful though because you are virtually walking through a minefield whereas your action will dictate the outcome of each step you take.
If you want this addressed and solved without controvery, call me, make an appointment and I will help you if need be.
Johnny
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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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Iknowalotofstuff
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Joined: 29/September/2008
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Posted: 03/December/2009 at 7:07am |
Prior to the enactment of the Limitations act on Jan 1, 2004, the old act was subject to an act called the Interpretations Act. As I recall, that act prevented student loans from being subject to the old Limitations act. The Ontario student loan legislation does not have limitation clauses like the federal acts do.
Why is it OK to get out of debt using the Statute of Limitations ( a statutory provision) but not a court application (a statutory provision)? By the way, the SOL does not discharge a debt it merely gives the defendant an affirmative defense if sued.
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SolveStudentDebt
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Posted: 03/December/2009 at 10:58am |
Why is it OK to get out of debt using the Statute of Limitations ( a statutory provision) but not a court application (a statutory provision)?
If an individual is experiencing hardship with extenuating circumstances, and there is a limitation issue, it is the surest method of resolution. It is a crucial benefit. However, if an individual is able to repay, then a limitation should not matter. I have taken that position since the very beginning.
By the way, the SOL does not discharge a debt it merely gives the defendant an affirmative defense if sued.
Everything is subject to interpretation.
The limitation of actions or proceedings can be interpreted as just as it reads. "No action or proceedings". This is not limited to "legal action or proceedings". You can call a white cow a brown cow all you want. Creditors and student loan providers pay attention when an individual confronts a situation like this. We have successfully determined loans that are to barred MUST to be closed in a number of circumstances.
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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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Iknowalotofstuff
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Posted: 03/December/2009 at 3:51pm |
An individual experiencing hardship with extenuating circumstances with regard to student loans who has previously been bankrupt, can make a s. 178. It too is a crucial benefit. However if the debtor is able to repay he will not be granted relief and I would not make the application for them. I have taken that position from the very beginning.
RE: SOL I had a case where a debtor had not paid on a credit card for 10 years. It was a chartered bank credit card. The bad debt was purchased by a factoring company for pennies on the dollar. The newly married debtor's wife had an account at the chartered bank. Without thinking, the debtor opened a joint account with his wife at that bank. The factoring company became aware of the joint account when the bank did a credit check for an overdraft on the joint account. The factoring company got the bank under the right to set-off to take money from the account and restart the limitation clock. The debt was otherwise statute barred. The court held that the set-off did not contravene the statute of limitations and the judgment was granted. The action or proceeding at least in Ontario refers to a court action or proceeding. I remember this case from many years ago.
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administrator
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Posted: 03/December/2009 at 6:41pm |
and you will find on these forums, people who had their loans discharged under the 10 year rule, but the collectors still come after them, ignoring the bankruptcy laws....
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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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Iknowalotofstuff
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Posted: 04/December/2009 at 1:07am |
Only because of their ignorance .... I would be happy to educate them.
I had a client who went bankrupt under the ten year rule but they were out of school for seven years when they filed. They were discharged after July 7, 2008. As soon as the they received their discharge the collection agency started after them again claiming they were still subject to a 10 year rule. Wrong ... bankrupt's student loans subject to discharge ... collection agent poorly trained ...fixed problem in 15 minutes.
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SolveStudentDebt
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Posted: 04/December/2009 at 1:09am |
Iknowalotofstuff wrote:
An individual experiencing hardship with extenuating circumstances with regard to student loans who has previously been bankrupt, can make a s. 178. It too is a crucial benefit. |
I don't disagree with that.
Iknowalotofstuff wrote:
The factoring company got the bank under the right to set-off to take money from the account and restart the limitation clock. The debt was otherwise statute barred. The court held that the set-off did not contravene the statute of limitations and the judgment was granted. The action or proceeding at least in Ontario refers to a court action or proceeding. I remember this case from many years ago. |
An involuntary action cannot be construed as an acknowledgement. Set-off is not a voluntary act employed by the indebted. That is an arbitrary action. Arbs and involuntaries do not disrupt any current limitation issues. What you are citing does not mnake any sense. Show me this case so I can see it for myself. If the judge overruled limitations then there had to have been other circumstances to warrant that. If a creditor can demonstrate that the defendant had not acted in good faith to some unlawful degree, or something along them lines. The new limitation act of 2002 allows for the extension of a limitation period, but in cases that involve traditional creditor-debtor relationships, it is not all that common. If a consumer and a business were duking it out in court regarding a warranty matter, and a limitation issue were present, then the extension of the limitation period in effect would be extended upon examination of the merit of dispute.
The limitation act in Ontario cites a two-year period. THere is also the ultimate limitation period, which would apply in such a case as i described above should the plaintiff be successful.
What I have learned this morning is that the limitation act of 2002 (Ontario) does not apply to agreements entered into before January 1, 2004. This means that student loans agreements written before January 1, 2004 should be bound by the previous limitation act. Everyone should take note of this.
Johnny
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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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Radagast
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Joined: 11/August/2005
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Posted: 04/December/2009 at 2:15pm |
Johnny wrote:
Contrary to what many at Ministry of Government Services reps say, I believe there is a limitation issue pertaining to Ontario student loans. In my opinion, any loan that became due and payable before the coming into force of Ontario's new limitation ruling would still be bound by the limitations. A member here named Paulaffleck is someone I certainly would entrust if he or she has any knowledge about that. Paul's opinion would be something that I would also consider extremely valuable as well given the strength of his/her knowledge.
One thing I do know though is that the Ontario government had issued a load of those overpayment accounts to CBCL whenb they were still operational, and they were aged, quite jurassic actually. The collectors were required to advise the indebted that they were required to pay it but they were not at risk of any legal action. THese debts were owed to the Ontario government, and that campaign, I believe, took place back in 2005 and 2006. The Ontario limitation of actions anbd proceedings changes came into force in 2004. April if I recall. So, based on the above example, and in the way manner in which these debts and individuals were treated by the collection agency, it would appear that a limitation does bind the Crown, given those timelines and circumstances. It is quite clear though that the financial community will deny or object at least anyone who questions a limitation issue in the province of Ontario.
The best thing to do here in respect of anything allegedly owed to the Ontario government would be to contact their federal set-off program and see if there are any liens anchored. Be careful though because you are virtually walking through a minefield whereas your action will dictate the outcome of each step you take.
If you want this addressed and solved without controvery, call me, make an appointment and I will help you if need be.
Johnny |
Sorta back on-topic here.. We are planning to start seriously paying off this old loan with monthly payments as soon as I get a full time job (currently part time). My own loan payments are almost $500 a month, and we have other debts also, plus my wife is still in school so we decided in the meantime that it's probably not worth the hassle to set up what we could currently afford (probably $100 a month). Nordon called a few times about a year ago but nothing since. We'll most likely get in touch with you when we can afford some more serious payments.
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Iknowalotofstuff
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Joined: 29/September/2008
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Posted: 05/December/2009 at 8:56am |
Is there anyone in this forum who went bankrupt prior to the expiration of the 10 year limitation period, whose student loans were revived, who is being hounded by CRA / collecition agencies, and who has now been out of school for at least five years? I need just one response. I will work with you at no charge to make an motion to the bankruptcy court to see if what I say is true.
If you are in these circumstances AND feel you have acted in good faith to the best of your ability to repay your liabilities under the loans AND are experiencing and are likely to continue experiencing financial difficulty with your liabilities under the loan, I will tell you how to proceed.
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Radagast
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Posted: 05/December/2009 at 12:56pm |
Iknowalotofstuff, why do you keep talking about bankruptcies in my thread? Go start your own, my thread has nothing to do with bankcruptcy, neither I nor my wife has ever been bankrupt nor do we ever intend to be.
Thanks.
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administrator
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Posted: 05/December/2009 at 4:22pm |
Iknowalot does not understand the concept of 'hijacking' a thread. IIts a common mistake of people who are new to online communities. Lets get back to helping Radagast and read the original posts and provide some answers...
Only posts in this thread that deal with the original post will be approved.
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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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Iknowalotofstuff
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Posted: 06/December/2009 at 2:02pm |
My apologies. No intent to hijack anyone's thread. New to this process.
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