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Student loans STOLE my tax refund!!

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Sunflower View Drop Down
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    Posted: 28/March/2009 at 9:05pm
WOW!!  I thought I was the only one with problems like this!

About 6 years ago I finally was making enough money not only to support me and my two kids, but to pay off my student loans.
I contacted the two banks and tried to make arrangements.  One accepted my $100 a month but the other (CIBC) wanted over $250 a month and there was just no way for me to afford that! 
They refused my offer of $100 a month as way too low! (I was earning $30000/year which translates to about $1700 a month take home)
After trying to reason with these unreasonable people, I simply put the $100 on the other student loan.  I even ended up paying the first loan off with a tax refund I got.
I then tried to contact the other people as they hadn't contacted me in a couple years....WHAT A MESS!
I got the same runaround as the previous posters.
Then the Student loans were taken over by some NB government department.  I tried to get info from them to no avail.  I haven't moved, I haven't changed my telephone nothing.  I haven't had even a letter from this department about this student loan.
This year I was to get a $5000 tax refund (I really need it too...my job is finished the end of April)
but THEY took it for the loan!!

I thought they had to have really TRIED to contact you before they are allowed to just take your refund!!
Help!  I was really relying on that refund (I would part with some to them but not all)


As they haven't contacted me for well over 2 years AND I haven't move nor changed my phone number, don't I have any recourse???
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Sunflower View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Sunflower Quote  Post ReplyReply Direct Link To This Post Posted: 01/April/2009 at 6:50am
Please!!  SOMEONE tell me what / if anything I can do!!  I have called the NB Student loan # 4 Times and they keep saying they will call me back, however I never get a call.
 
PLEASE!
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Johnny View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Johnny Quote  Post ReplyReply Direct Link To This Post Posted: 01/April/2009 at 7:17am
You have to contact the party that has the lien anchored.
The Canadian Financial Wellness Group (CFWG)



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Sunflower View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Sunflower Quote  Post ReplyReply Direct Link To This Post Posted: 01/April/2009 at 7:26am
I Have!  I have been calling them for OVER a week!  (since I got the letter)
 
I havent' heard from them in like 5 or so years and poof all of a sudden they are taking my tax refund!
I havent' moved, I didn't know where to reach them 'cause it was at CIBC, but then NB student loans went to some government department and I tried to find them to no avail!!
 
They KNEW where to reach me and didn't bother....
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Johnny Quote  Post ReplyReply Direct Link To This Post Posted: 01/April/2009 at 7:47am
They will simply tell you that the onus in on you to contact them. I feel your pain, but this system is what it is.
The Canadian Financial Wellness Group (CFWG)



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Sunflower View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Sunflower Quote  Post ReplyReply Direct Link To This Post Posted: 01/April/2009 at 8:06am
Well that stinks considering I had no idea WHERE to find them !!!
 
All I knew was that the student loans were being moved from the individual institutions to some place in the government.  I called the general inquiries # and no one had any clue what I was looking for....
 
I thought that the only way they could seize my tax refund was if they proved they had tried to collect to no avail.  Cripes, it's been like 5 or more years.  My job is ending, my house is falling apart and I have kids to feed and clothe!
 
 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote sweetnsmarttoo Quote  Post ReplyReply Direct Link To This Post Posted: 20/April/2009 at 1:04pm
Hi
 
They did the same thing to me last year, and will probably do it again this year- it seems like they are a law unto themselves. Every question and answer is different when it comes to the government policy and proceedures: Student loans told me to contact revenue canada and revenue canada told me to contact student loans. One of the websites states they can take up to 25 percent, when I called to confirm this I was told up to 100 percent.
 
What really really irks me is that they preach about helping out low income families yet they have roadblocks in place so no one can get out of the cycle of poverty. I have contaced my MPP not sure what good it will do, and revenue canada also has an appeals process you may want to look into. Good luck to you.
Sweetnsmarttoo
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Madmorrigan Quote  Post ReplyReply Direct Link To This Post Posted: 21/April/2009 at 10:32am
I think it would be highly unlikely that the government would be able to garnishee 100% of one's pay....

...but I agree the misinformation that continues is absolutely disgusting and has screwed more people than the program, itself.
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Sunflower View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Sunflower Quote  Post ReplyReply Direct Link To This Post Posted: 22/April/2009 at 3:33am
Madmorrigan, I don't think sweetnsmarttoo was saying 100% of wages.

They CAN take 100% of any tax refund you are to get and 100% of any GST cheques you are to receive. 

Personally, I think the way they conduct business is horrendous.  I could understand if they had been contacting me and were even able to be found; but the way they just dropped from sight, never contacted me and I could never find them....then ALL OF A SUDDEN, when I have a decent sized refund coming my way (that I had planned on as I had extra taken off each pay)  the swoop in and take it....

THAT SUCKS
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Madmorrigan Quote  Post ReplyReply Direct Link To This Post Posted: 23/April/2009 at 10:48am
Originally posted by Sunflower Sunflower wrote:

Madmorrigan, I don't think sweetnsmarttoo was saying 100% of wages.

They CAN take 100% of any tax refund you are to get and 100% of any GST cheques you are to receive. 



I must have misunderstood--if we're talking a lien, then yes you're right--they can absolutely take 100% of refunds and GST because they've been taking 100% of mine for the last few years. I try to make sure I don't get too big of a refund because of it--dirty ****. Angry

If we're talking about garnisheement, then I'm almost positive they cap out at about 50% because I asked them (the government, not the lackey collection agencies) how much they could theoretically take if I was non compliant (never hurts to know what you're up against, eh?).

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Post Options Post Options   Thanks (0) Thanks(0)   Quote Sunflower Quote  Post ReplyReply Direct Link To This Post Posted: 24/April/2009 at 12:39pm
They'd better not take 50% of my income otherwise me and my kids will be on the street! 
 
I have done like you, Madmorrigan, I have now made my refunds the smallest possible because I get the tax savings on the pay cheque.  That won't matter in a couple of weeks though, as I have been laid off.  That tax refund that I was SUPPOSED to get would have helped me keep afloat for a couple months, but I didn't get it....
 
GRRRRRRRRRRRRRRAngry
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Post Options Post Options   Thanks (0) Thanks(0)   Quote sweetnsmarttoo Quote  Post ReplyReply Direct Link To This Post Posted: 27/April/2009 at 2:04pm
Hi
 
Yes it was income tax I was referring to, sorry if you misunderstood. And guess what they just took all of mine again this year. This time I called revenue canada who in turn told me to contact student loans, and so the story goes again this year. But I did however write to my MPP, the newspaper article that I sent out was attached. I plan on sending all of these letters again to EVERY PERSON IN THE MEDIA, AND GOVERNMENT. Maybe just maybe someone will actually give a darn. I will keep you posted.
 
Oh and I also recommened this site to media so they can see I am not the only one.
 
Here's a little bit of what I wrote.....
 

I am so sick and tired of hearing of yet another bailout from our "generous" government when they are still taking from the poor. Having lost my job and being a single mom is tough, but what really gets me is how my income tax is just taken away and given to student loans for a debt I cannot afford to pay. But if I had a 30 million dollar company I'm given grace and told no worries heres some more money till you get back on your feet. What really sucks is I see this happening OVER AND OVER again. Revenue Canada says. Can’t help money already gone, call Student Loans. Student  loans says. Sorry can't help. And my MPP never returned my calls, and funny thing is I am behind in everything and no way out. Why ? because my issues are not important to our government. Here is a website that is telling story after story about Revenue Canada, Canada Student Loans, and guess what no one helped them either. If I ever do come into money I would leave this country so fast, and I was born and raised here as was my parents and grand parents. It makes me sick how people are being treated. In my opinion there needs to be a full investigation as to how Canada Student loans can come up with there own rules as to how much they can take from a person living in poverty.

You want real HUMAN INTEREST go to canadastudentdebt.ca.

Sweetnsmarttoo
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Post Options Post Options   Thanks (0) Thanks(0)   Quote MmeSaulsa Quote  Post ReplyReply Direct Link To This Post Posted: 30/April/2009 at 2:05pm
Sunflower:

The SAME thing happened to my husband this year...CIBC stopped taking payments back in '05, and no one could figure out who to contact...he got the run around big time! Now, this year, they come out of nowhere and took his tax return$$$$$ and we sooooo needed it!!! 
I am in the process of writing to Mr.. Bernard Richard, the NB ombudsman about it, and about this lady who, after 3+ weeks, finally called my husband back(NB student loans office-f'ton)...he wasn't home, so she proceeded to tell me all my husbands business.....she had no idea who I was, asked no security questions, and my husband most cerrtainly did not give her permission to share with me, his personal info.  I feel that she may have trampled on the Privacy Act, and am going to call them on it!!!! It's a long process, but I want something done! My husband may be underemployed/underpaid, but he is most certainly entitled to all rights that other well paid Canadian's have!!! I worked at a bank for a few years, and man, did they ever grill you on your knowledge of the Privacy Act....so the same should go for civil servants and collection agency workers(had the same problem with NCO sharing his info).  
We have a long and steep mountain to climb, but we're determined and if they want our $$, they are gonna darned well work for it.....time to send emails and lots of phone calls.....I say give em a dose of their own medicine!
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Post Options Post Options   Thanks (0) Thanks(0)   Quote allennathan Quote  Post ReplyReply Direct Link To This Post Posted: 24/January/2010 at 2:29pm
They have been taking my student loan as well. I don't mind that they do because it is my debt.  But i am concerned that when I file with my spouse this year as common law they will take her tax return as well.  Does anyone know if they do or not?
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Post Options Post Options   Thanks (0) Thanks(0)   Quote kadowswe Quote  Post ReplyReply Direct Link To This Post Posted: 11/February/2010 at 6:19am
Hello
No they wont take her's too.  I was worried about that when my husband and I first started filing jointly after we got married but they have never taken mine, just his.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote pantulr Quote  Post ReplyReply Direct Link To This Post Posted: 12/February/2010 at 7:17pm
My income tax refund will also be taken to cover my student loans. Will they keep all of the income tax refund even though a part of it is due to my dependent (child)? Does it also matter if I am in the low income bracket? How about the GST refund? Thanks.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Johnny Quote  Post ReplyReply Direct Link To This Post Posted: 13/February/2010 at 5:43am
If you are int he low income bracket you can appeal to the government to have the lien lifted temporarily. You may have to demonstrate hardship every so often but as long as you are experiencing it, it should be demonstrated. If you want help you can pop over onto my site and I will put something together for you.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Fed-Up Quote  Post ReplyReply Direct Link To This Post Posted: 18/February/2010 at 10:14am
To answer pantulr:
 
They take your income tax cheque and your G.S.T. cheques no matter your income bracket. As far as I know they won't take your Supplement for Working families (if you qualify), your baby bonus and/or the Canada Child Tax benefit if you have dependents under 6 and receive this. They never took mine.
 
The way I see it I can't miss money I never really had in the first place. They have been taking my income tax cheques and G.S.T. cheques for a number of years. I am happy to say though that those payments are helping my loan go down a bit faster above what I pay them monthly.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote dh calgary Quote  Post ReplyReply Direct Link To This Post Posted: 07/January/2011 at 12:21pm

Interesting concept. I think everyone is missing the point.

It is Party A who did not pay back a debt to Party B as agreed

Party B then has a debt to Party A. (tax refund)

Party B uses the debt to party A towards the amount owing

Party B is accused of stealing by Party A?

OK Party B is Canada Revenue Agency, but isn't the principal the same.

If someone owed me money & did not pay & I then later found I owed them some money, I wouldn't pay them the amount I owed them only to be left with the bad debt from them. That would be crazy. I don't think any of the writers would either.

Surely it is Party A who is in the wrong initially & if anything they are be more likely to be accused of "stealing" by not repaying the initial debt.

We all pay taxes too & none of us are owed a living, we should pay our way &  pay our debts, we cannot always expect to be baled out by the rest of society.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote Johnny Quote  Post ReplyReply Direct Link To This Post Posted: 10/January/2011 at 9:08pm

If party A's intention is to frustrate the system then your argument makes sense. However, if Party A is financially unable to manage and repay the debt in the now and longer-term, and Party B insists on opressing Party A then your argument and opinion is no different than that of a CRA teamleader or collector who does not particularly like student loan borrowers.

Johnny
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