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How do I know if my loan has been written off?

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Justang View Drop Down
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    Posted: 10/May/2017 at 2:10pm
I had a federal student loan(Canada Student Loan) come due at the end of 2006. I didn't make payments, I avoided the student loan collectors phone calls and letters.

Now, being 10years later, I would assume my loan would fall under the Statute of Limitations on loan collection. I contacted the NSLSC and they informed me I only have a Provincial student loan outstanding which I was aware of and have been paying off. Nothing about the federal loan I once had.

Assuming my loan was written off, I filled my taxes this year and the CRA took my refund to put towards my federal student loan debt...
Is it not illegal for the to collect on that loan now that I have not acknowledged it for over 6 years? And now does the CRA putting my refund towards my loan now constitute as a payment and therefor reset the limitation period?

I read about the government writing off hundreds of millions in student loan debt every year... why is mine still on the books after 10 years??

P.S. - I requested my credit report from Exuifax and it showed no federal student loan information
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Royal-NCO Quote  Post ReplyReply Direct Link To This Post Posted: 10/May/2017 at 6:54pm
Unless you revived the debt somehow, so that it isn't statute barred, there is a high probability that the CRA is in fact collecting on behalf of the province.   What exactly does it say on your notice of assessment about where the debt is being transferred?  In the past, once the debt was statute barred, the CRA seized exploiting their right of set off.  Technically, a limitation issue doesn't stop this right, however.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Royal-NCO Quote  Post ReplyReply Direct Link To This Post Posted: 10/May/2017 at 7:00pm
I should clarify that in Ontario there is no statute of limitation for the provincial portion of the student loan after 2004.  I don't know what the corresponding rule is for BC.  Perhaps, Johnny can answer that.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Johnny Quote  Post ReplyReply Direct Link To This Post Posted: 11/May/2017 at 8:48pm
A limitation issue on a Canada student loan does require liens to be removed for the purpose of collecting income and GST money. 

In a case of an Ontario loan, the lien is supposed to be removed as well when  limitation issue is discovered to be in place. However, loan agreements taken out on or after April 1, 2004 with the Ontario government are not subject to a limitation period at all. Only those that were negotiated before April 1, 2004. 


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Post Options Post Options   Thanks (0) Thanks(0)   Quote Johnny Quote  Post ReplyReply Direct Link To This Post Posted: 11/May/2017 at 8:53pm
The BC government has a unique way of looking at things. The BC limitation law has changed as of recently, but there is still a limitation period. 

Laws are used - and misused as we all know. If a loan is statute barred in BC, it seems as though the government (BC) is still required to extinguish the loan. However, they have, in recent times, been able to use the set-off of income tax money from you as an admission of liability when it is not disputed. You would have to dispute it fairly quickly and not wait though. There is jurisprudence floating around and I have it in my office somewhere. I will look around for it and post it when I am in. 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Justang Quote  Post ReplyReply Direct Link To This Post Posted: 11/May/2017 at 10:08pm
Thank you so much for the responses.

Allow me to clarify that I have accepted 2 loans in my past. One calls itself a BC Provincial student loan(which I am, and always have been, paying off). The other calls itself a Canada Student Loan which I assume is federal. They are two separate loans from two separate schools.

The loan in question does not show up under my CSLSC account online, nor when called them to inquire about my loans. ***however they did say that one of my loans was -restructured-?? Something along those lines. I assumed it meant written off. They have no record of it anymore***

My concern now is that the CRA has taken my tax refund and stated "We transferred $****.** of your refund because you owe a debt under the Canada Student Loans program (Employment and Social Development Canada)"

Do I have any rights here to argue this? My loan is well past the time limit of collection. Anymore advice would be greatly appreciated.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Royal-NCO Quote  Post ReplyReply Direct Link To This Post Posted: 12/May/2017 at 4:58am
By the way, OP, you made the point about your Equifax report.   There should be no trade remaining on your credit report, unless you made a payment more recently before it fell off.  There MIGHT be a collection for the provincial loan, however that too should have aged off if a limitation issue applies to the provincial portion of your loan.   You might want to look at your Transunion report as well.  There WILL be an entry for your Canada Student Loan.  It will show a 0 balance and show that it has been transferred. This will persist for 20 years because of how the rules work for Transunion.  All negatives have been deleted and therefore it is reflected as a positive trade which persists for 20 years.  However, its annoying because every experienced credit underwriter know what "transferred" actually means.  

 You can get a free online disclosure for Transunion here:

Here are a some other free sources for credit report and credit score:
Ratehub : Equifax. Score and credit report provided. I have yet to see it update. It seems to be a one shot wonder.
CreditKarma: Transunion. Credit report and score provided. Updates weekly.
Mogo: Equifax. No credit report. Score only. Updates monthly.
Borrowell: Equifax. No credit report. Score only. Updates every three months. Mogo renders Borrowell redundant in my opinion since Mogo is more regular and same scoring model is used.





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Post Options Post Options   Thanks (0) Thanks(0)   Quote Justang Quote  Post ReplyReply Direct Link To This Post Posted: 12/May/2017 at 5:34pm
I checked my Transunion report. Royal-NCO, you are exactly right that the balance is 0 and the account has been transferred. I would then assume that the loan does not affect my credit score...

So what does this mean? The report states that there has been no payments since Mar 1, 2009.

This is longer than the statute of limitations, so why has the CRA recently collectied my refund to pay towards this debt? Should I be arguing this? What course of action should I take at this point in case time is a factor?

Thanks
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Royal-NCO Quote  Post ReplyReply Direct Link To This Post Posted: 14/May/2017 at 2:04pm
In theory, it isn't supposed to be negatively impacting your score anymore.  It may even have a positive impact depending on the age of your other credit accounts, by adding to the average age of your credit products.

It certainly looks to me like it should be statute barred unless you've done something else to revive it by writing to them, applying for interest relief, bankruptcy proceeding etc.  However, as Johnny sais, you have no way to be certain unless you have a professional go through the process of confirming that it is statute barred.

I asked you in an earlier post to read your last tax return and find out exactly what it sais about transferring your tax refund to your student loan debt.  What is the exact wording?  I would bet that the refund is actually being transferred to the provincial portion of your loan.  The provincial portion may not be statute barred.  As Johnny said, the BC portion is being revived every year by having the refund applied to that debt.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Justang Quote  Post ReplyReply Direct Link To This Post Posted: 15/May/2017 at 2:23pm
The exact wording on my tax assessment is:

"We transferred $****.** of your refund because you owe a debt under the Canada Student Loans program (Employment and Social Development Canada)"

That is all it mentions on the matter. I checked my CRA account and it shows the amount transferred to a debt named "Canada Student Loans". The debt is of the full amount of my student loan from 2007 plus some interest.

I do not recall applying for interest relief. I remember looking into the program...

Can you reccomend a professional I can consult on this matter?
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Royal-NCO Quote  Post ReplyReply Direct Link To This Post Posted: 17/May/2017 at 5:46pm
That does look like your Canada Student Loan.  Therefore, you've either done something to reactivate it in the last 6 years plus 270 days, or the policy about debt setoff when statute barred has been modified.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Justang Quote  Post ReplyReply Direct Link To This Post Posted: 19/May/2017 at 12:24pm
How can I be sure? I don't believe I have acknowledged the loan in that amount of time.

Who can I consult with about the statute barred policy?

With the amount of loans they write off every year, I don't see why mine wouldn't be one of them...
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Justang Quote  Post ReplyReply Direct Link To This Post Posted: 31/May/2017 at 10:45pm
Can anyone recommend who I might be able to contact about this matter?tbcyyyyfy
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Royal-NCO Quote  Post ReplyReply Direct Link To This Post Posted: 01/June/2017 at 9:00am
Hopefully Johnny will step in with an opinion, but my suspicion is that you're in BC where the tax refund setoff reactivates your loan unless you dispute it.  I would have thought this would only apply to the provincial portion, but ...
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Royal-NCO Quote  Post ReplyReply Direct Link To This Post Posted: 01/June/2017 at 9:09am
Johnny is the only one I know that can perhaps help you with this if he isn't already overwhelmed.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Johnny Quote  Post ReplyReply Direct Link To This Post Posted: 02/June/2017 at 9:44am
Right now my crew is not taking any new clients for a few weeks at least. Right now we are jammed up to the eyeballs. I can post here from time to time to help out in any way I can, if it helps. I always allot time to post here now and then to help out. 

I would like to hire more people but it is a challenge because a lot of people cannot afford even the smallest amount. The system has people pigeon-holed. 


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Post Options Post Options   Thanks (0) Thanks(0)   Quote Justang Quote  Post ReplyReply Direct Link To This Post Posted: 02/June/2017 at 2:15pm
It's strange how a tax refund would reactivate my loan. I did not authorize the funds to be allocated to that debt.
Also, the loan had been addressed in over 6 years.
This seems like a disputable matter. I have not acknowledged this loan in 10 years.

Here is an excerpt from global news this February:

"OTTAWA – The federal government for the second year in a row is writing off millions in student loans it will never collect, this time to the tune of $178.4 million.
The money represents 32,554 loans that federal officials believe they will never be able to collect, either because a debtor may have filed for bankruptcy, the debt itself has passed a six-year legal limit on collection, or the debtor can’t be found."

Six year legal limit on collection. Why would I not fall under this category?
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Johnny Quote  Post ReplyReply Direct Link To This Post Posted: 02/June/2017 at 6:51pm
With the feds, a tax return confiscation doesn't reset a clock. The BC government takes that position however, and the only way to combat that would be to file a dispute in such a way that it would not otherwise cause an admission of liability.  Governments have extraordinary powers to do what they want ot do without impunity. It is historic throughout our seemingly scandalous history in this country. 


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Post Options Post Options   Thanks (0) Thanks(0)   Quote bladerunner12 Quote  Post ReplyReply Direct Link To This Post Posted: 27/June/2017 at 10:55pm
Hi John, Have two questions, I seen a soft inquiry into my credit report by Canada Revenue Agency, what are they looking for as I did not give them permission to do so, What information can they get from it current address and job or do they snoop into my whole report.  Secondly what are the new powers the liberals granted them to look into tax information if anyone here knows. Thanks



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Post Options Post Options   Thanks (0) Thanks(0)   Quote Johnny Quote  Post ReplyReply Direct Link To This Post Posted: 28/June/2017 at 8:49am
The only reason they would be looking at your credit history is if you owe them money for something, and it is not written off or barred. If it is a student loan then you do not have to give them permission to access. It is written in the fine print of the loan agreement you signed. The power of access includes all of whom is responsible (CSLP and their government recovery agent). 

This gives them access to see all of your information that is reported, up to and including address, employer, and who is getting paid and who is not, etc. 

The non-tax office and agency does not have right of access to the tax office and agency data on people. If there is a new bill or law passed I am unaware of it. 
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