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    Posted: 04/July/2018 at 7:57am
Originally posted by jjunket jjunket wrote:


After the 60-day mark, I followed up with the agency by phone again, and they were kind enough to expedite the removal process, which removed the collection line from both Equifax and TransUnion (which I verified by requesting my reports).


I just finished the rehabilitation process myself. When I rehabilitated the federal portion, a new account for the NSLSC showed up just for the federal portion on my credit report, with the old remaining with all of it's awful payment history, in addition to the collections account for the Ontario portion. 

When you had the collection item removed from your credit report, did the old NSLSC account with the bad payment history get removed as well, since that's the one the collection account was tied to? Or did it remain? I'm still in the 30-60 day period after rehab has finished with the province, so my credit report hasn't been updated yet, but I'm just curious to know what I can expect to see. 

If you're still paying attention to this thread, thanks in advance.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 27/March/2018 at 10:29pm
Thanks for the detailed process. It will help others....
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Post Options Post Options   Thanks (1) Thanks(1)   Quote jjunket Quote  Post ReplyReply Direct Link To This Post Posted: 27/March/2018 at 1:02pm
Hi All,

Since my last post, I have successfully completed the rehabilitation of the Ontario portion of my defaulted student loan - for those that are curious, here is my experience, and results:

I called the collection agency who held my account directly and requested the rehabilitation program.  The agent confirmed my details and then mailed out a package which outlined the amounts of the 6 monthly payments I needed to make. I was given the option to pay the total of the 6 amounts in a lump sum and just wait out the 6 month period, or, to pay monthly.  I elected to pay the 6 amounts monthly as it was easier on my budget.  I opted to do this by sending in 6 post dated cheques which were all made payable to the Minister of Finance (I also had the option to do pre-authorized debit but this made me uncomfortable so I did cheques instead).  I sent in the cheques along with my signed and returned the rehabilitation agreement.

Shortly after the conclusion of the 6 month period I was mailed a notice from the NSLSC which confirmed that my loan had gone back to them.  The balance was simply added to my existing federal loan account.  A second package also arrived in the mail from the collection agency which confirmed the same.

The only thing outstanding at this point was the collection item on my credit report, which I had been assured would drop off after rehabilitation, but was honestly the one thing I doubted they would come through on.

I called the collection agency to inquire about the credit reporting after I received the final letters and they stated that it takes between 30 - 60 days for all of the information to get updated to the bureaus after the matter is closed.  

After the 60-day mark, I followed up with the agency by phone again, and they were kind enough to expedite the removal process, which removed the collection line from both Equifax and TransUnion (which I verified by requesting my reports).

So, it turns out that the agency held true to their word in my case.

If anyone else is looking to go down this road, some tips that helped me:

- I downloaded an app on my phone that allowed me to record all of my calls about the matter so that I could easily reference our conversations and retain proof of everything stated.  This made it easier to review details and dates of the calls.  I never needed to confront anyone with the recordings but it made me feel better to have them.

- I took detailed notes on every call and made a plan and todo reminders so that I didn't get behind on any essential steps I needed to complete.

- I followed up with everyone I spoke to at every deadline - this sucked and kind of felt like I was chasing people but with these systems, even the smallest hiccup can cause consequences so I made triple sure that I understood everything and that everything was moving along between the organizations as planned.

So that's a wrap for me - both my federal and provincial parts are back in good standing and treated just like any other loan.  One other thing I did after everything was done was request receipts for interest paid for my taxes - the federal parts (NSLSC and EDSC/CRA) mailed this out automatically but I had to mail out a request to a government office for receipts for the provincial part (I also requested prior years).  The collection agency had this address on file and gave me instructions about it when I asked.

I'll try to swing by this board periodically if anyone ever has questions - but I tried to be detailed enough to help anyone that might be searching.

Thanks again to the community here for giving me the confidence to tackle these loans!  There is a light at the end of the tunnel!
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Post Options Post Options   Thanks (0) Thanks(0)   Quote jjunket Quote  Post ReplyReply Direct Link To This Post Posted: 13/June/2017 at 12:01pm
Hi all, I said I'd post back with an update as I had more information - so here I am:

Since my last post, the federal portion of my loan was successfully rehabilitated and transferred back to the NSLSC.  There are now 2 entries for Canada Student Loans on both credit reports:

1. The old, defaulted loan, notated Account Paid, Transferred, $0 balance;
2. The new, rehabilitated loan for the federal portion that I'll be paying on from here out.

The old loan has some late payment history associated with it, I imagine these marks will age off as time passes.

Regarding the provincial portion, I let things cool down for a bit while I was paying back the federal stuff and since I couldn't get anyone on the phone anyway.  Last week I decided to try again - I bit the bullet and called the collection agency directly.

The agent I spoke with confirmed the details of the program - they would apply for approval to rehabilitate with the provincial government, then I would enter a 6-month rehabilitation period in which I will make payments to the collection agency or pay a lump sum.  Once satisfied, after the 6-month period, my loan will transfer back to NSLSC.  The agent also confirmed that the collection item listed on my credit report would be removed once the loan transfers back.

I'm holding out hope that this information is accurate and complete, but either way, I'd like to get it transferred back and as much time and distance from the item as I can.

I am awaiting a call back from the agency to confirm my approval, and then a letter that will detail out the amount to be paid.  I'll come back and let everyone know how it went once I hear more.

Just wanted to once again thank the administrators and regular contributors to this site.  These are difficult waters to navigate, and this is truly the only place I've found that fosters productive conversation about these issues.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Msavs Quote  Post ReplyReply Direct Link To This Post Posted: 09/May/2017 at 9:07pm
Originally posted by jjunket jjunket wrote:

I recently found a job in a related field, so yes, it is benefiting me now.

Don't get me wrong - I'm definitely not looking to reduce minimize my responsibility here - the loan is mine, I want to repay it - it was my poor decision to allow it to default in the first place and also my circumstances that prevented completion of my education.

I just want to make sure I'm repaying it in the smartest way.  I know it sounds trivial to be so concerned about the credit report - but a negative item sticking around for another 6 years could potentially cost me thousands of dollars of extra interest over the term of a future mortgage or other loan.

As an update - I called the provincial collections number (same as the one on the page Royal-NCO provided) again at lunch today and sat on hold until I had to go back to work.  Looks like I'll need to make arrangements to call at a different time, since the lunch hour doesn't seem to be working.  Or maybe I'll just get in touch with the collection agency directly.

As before, I will update with my experience for the benefit of others.


I'm curious if you have an update yet regarding this or if you received any further information? I'm considering going this route as I'm in a similar situation.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Johnny Quote  Post ReplyReply Direct Link To This Post Posted: 03/March/2017 at 2:40pm
What you should do is contact the Ontario collection management unit in Toronto and open a ticket. That way they come to you. 
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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I recently found a job in a related field, so yes, it is benefiting me now.

Don't get me wrong - I'm definitely not looking to reduce minimize my responsibility here - the loan is mine, I want to repay it - it was my poor decision to allow it to default in the first place and also my circumstances that prevented completion of my education.

I just want to make sure I'm repaying it in the smartest way.  I know it sounds trivial to be so concerned about the credit report - but a negative item sticking around for another 6 years could potentially cost me thousands of dollars of extra interest over the term of a future mortgage or other loan.

As an update - I called the provincial collections number (same as the one on the page Royal-NCO provided) again at lunch today and sat on hold until I had to go back to work.  Looks like I'll need to make arrangements to call at a different time, since the lunch hour doesn't seem to be working.  Or maybe I'll just get in touch with the collection agency directly.

As before, I will update with my experience for the benefit of others.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Johnny Quote  Post ReplyReply Direct Link To This Post Posted: 03/March/2017 at 1:26pm
Are you working and benefiting from the education (financially and professionally) that you did receive although incomplete? 
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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Post Options Post Options   Thanks (0) Thanks(0)   Quote jjunket Quote  Post ReplyReply Direct Link To This Post Posted: 03/March/2017 at 1:21pm
Unfortunately not - I was a little over a semester or so from completion when I discontinued studies due to some family/personal issues.


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Post Options Post Options   Thanks (0) Thanks(0)   Quote Johnny Quote  Post ReplyReply Direct Link To This Post Posted: 03/March/2017 at 9:45am
Question: did you complete studies that apply to these student loans? 
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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Post Options Post Options   Thanks (0) Thanks(0)   Quote jjunket Quote  Post ReplyReply Direct Link To This Post Posted: 03/March/2017 at 6:27am
Johnny - based on my calculations the loan has been in default for just over 5 years.  Amount owning is less than $5,000, including accumulated interest.  At this point, I'm no longer being actively contacted by the collection agency - though I'm not sure if this is due to a lack of effort or them not having updated contact information, maybe both.  The only real reminder I get is an occasional letter from the CRA reminding me that they will apply any tax refunds or credits to the loan via right of set off.

Royal - thanks so much for the update - it gives a clearer picture;  I definitely understand your frustration with the system.  The Ministry number at the bottom of that page is the one I've yet to get through to, even though I've sat on hold for a couple of lunch breaks trying.  I'll give them a try again, hopefully with some luck this time.  After I get some reassurances/confirm amounts from the Ministry I'll get in touch with the collection agency to start the rehab process.  If I can't get through today at lunch I might need to take a half day off to sort all of this next week.

Thanks guys for the replies!
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Royal-NCO Quote  Post ReplyReply Direct Link To This Post Posted: 02/March/2017 at 3:10pm
Actually, they have all the numbers published now.  It was a lady at the Ministry of Finance that I was speaking with.  Scroll to the bottom of this page.


If you don't have the name of the collection agency dealing with your provincial loan, you can ask at the Ministry of Finance number.  This is also a good opportunity to ensure that the collection agency contacting you is in fact dealing with your provincial loan.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Royal-NCO Quote  Post ReplyReply Direct Link To This Post Posted: 02/March/2017 at 3:05pm
JJ,  I guess I need to level about something.  Studentmess and Royal-nco, ME, are the same person.  I was having issues with the password recovery which wasn't working, so a few years ago, I opened a new profile.  Then the password recovery started working, so I return to my original profile, Royal-NCO.  

Please, forgive the double profile, Administrator.  I hope this won't get me banned.

So, everything you're quoting JJ, is from my own experience.

If you read the experience of studentmess carefully, you'll realize that I am basically just expressing my frustration out loud.  I did in the end receive an offer to rehabilitate the loan, however I chose instead to pay in full.  In my frustration, at the time, I expressed that I would never pay the collection agency, but in the end I was forced to and everything worked out ok.  I received a letter of clearance stating the provincial loan had been repaid in full.

Because of my past issues, with their mistakes dealing with my loan,  I directly challenged both the collection agency and a lady I spoke with directly at the ministry.  I informed them that I had made such a great effort to rebuild my credit that if they DARED to put a new collection on my report, I would outright refuse to pay anything ever, and they would have to take me to court.  In fact, at the time I was so frustrated that I was actually wanting them to take me to court.  I was begging them to so I could challenge their behaviour with me and express my issues with the mistakes that had been made.  I planned to counter sue for damages.

Anyhow, I calmed down, came to my senses, and decided to simply settle the loan so I could move on with my life.  When I spoke to the lady directly at the ministry, she informed me that they would not put a new collection on my report if I paid in full or rehabilitated.  She also told me that the loan would be sent back to the NSLSC after rehabilitation and a brand new trade would be opened showing only the new new payment record.  HOWEVER, there is some uncertainty about what happens with an old collection.  It is SUPPOSED to be removed once rehabilitation has been completed.

I'll see if I can find the direct number at the ministry.  Perhaps, Johnny has its. Its neither NSLSC or Collection agency.  It was a direct number to the ministry.  However, you still need to call the collection agency to initiate the process.  

Its very important to realize that the collection agency does not touch your credit report.  This is entirely handled by the ministry.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote Johnny Quote  Post ReplyReply Direct Link To This Post Posted: 02/March/2017 at 1:32pm
How long has the loan been in default for, and how much is it that you owe? 
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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Hi Royal,

Thanks for the reply, it was my better half you were speaking with a couple weeks back - we've both been reaching out and trying to tackle this together, trying to put together as much info as we can before we start dealing with the agency.

You're right, I haven't phoned the collection agency yet.  I have emailed them, but they refused to communicate unless I called in (which makes sense from their standpoint, since they'll want to collect from me).  I was just hoping there might be someone out there who is on the other side of the Ontario rehab program, that might be willing to share how their credit report looks now.

It sounds like your experience was a little bit different since the mark had already aged off your report, so you were able to settle up in full without them potentially updating the Last Activity date.

I saw a thread here where the poster had suggested he was able to send a lump sum in to the ministry directly, effectively bypassing the collection agency altogether.  I'm wondering if this is a better approach - as you said, it's debatable, and luck of the draw whether or not the collection item slips through and ages off on its own.  Plus, I can't seem to figure out how someone would actually go about doing this, since no one but the collection agency really seems to be able to accept any money.  My preference would be to rehab and begin payments immediately since it will take me some time to save up for a lump sum and I want to resolve this sooner than later.

I also saw a thread where you stated that the collection item is supposed to be removed after the rehab is completed, with a clean tradeline added.  Do you mind sharing the source of this info?

I suppose I'll have to bite the bullet and call in.  I understand I don't have the moral high ground here, being that I allowed the loan to default in the first place.  However, now that I'm able, I want to get this sorted, and I really do think it's ridiculous that multiple government agencies can't be bothered to help out when at the end of the day what I'm trying to accomplish is to repay them.

You'll have to forgive me if I sound like I'm beating a dead horse - I just don't really trust the collection agency to give me accurate or truthful information.

The credit reporting is of course secondary to the resolution - but it would be stupid of me to not look for a way to act to satisfy both interests.

---

To Johnny - thank you for the reply - these loans would be from after that time period and so I doubt a limitation issue applies.  I'm more so interested in resolving them by repayment - I'm just looking to do so in a way that minimizes further credit damage.  Though, as I continue to research, that's looking like it may not be possible.

---

I'll likely reach out to the agency this week, hopefully they can provide some answers.  I will update here with any new info for the benefit of others visiting the site.

I'd just like to say again that I appreciate this community - Admin, Royal, Johnny - the insight and advice you provide here is very helpful and I'm sure it relieves a lot of stress for lots of people.

JJ
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Johnny Quote  Post ReplyReply Direct Link To This Post Posted: 01/March/2017 at 10:19pm
Ontario gov has the wool pulled over a lot of eyes.  

You should see the case I am working that involves CIBC douchbaggery in the US right now.  It amazes me how far CIBC collection management will go, and how much money they will spend to do the stupidest things. This case is going to open a can of WA on them. 


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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Post Options Post Options   Thanks (0) Thanks(0)   Quote Royal-NCO Quote  Post ReplyReply Direct Link To This Post Posted: 01/March/2017 at 5:21pm
Originally posted by Johnny Johnny wrote:

Loans taken out before April 1, 2004 may be statute barred under the old limitation act providing nothing has been done that would interrupt the limitation period running. If a debt is not legally recoverable then it is not permitted to be reported on any credit bureau report. 

Ontario loans taken out after April 1, 2004 will show on a credit history until they are paid and the timeline in which the report must purge thereafter. 

If there are no limitations that are binding, then that debt can be reported indefinitely as long as it is outstanding, as Royal NCO says. 

So, if the loan originated before April 1 2004, and no activity on your part was actioned to disrupt the limitation period running on it, then limitations are likely there and should be called out first Unless this is not an issue for you and you want to acknowledge and renew the loan.  



Unfortunately, the OP does not fall into the pre-2004 category.  However, this is information I have from him that he posted on another forum, so I'll wait for the OP to return and comment on this, as its not appropriate for me to directly link an external source without his permission.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Johnny Quote  Post ReplyReply Direct Link To This Post Posted: 01/March/2017 at 1:16pm
Loans taken out before April 1, 2004 may be statute barred under the old limitation act providing nothing has been done that would interrupt the limitation period running. If a debt is not legally recoverable then it is not permitted to be reported on any credit bureau report. 

Ontario loans taken out after April 1, 2004 will show on a credit history until they are paid and the timeline in which the report must purge thereafter. 

If there are no limitations that are binding, then that debt can be reported indefinitely as long as it is outstanding, as Royal NCO says. 

So, if the loan originated before April 1 2004, and no activity on your part was actioned to disrupt the limitation period running on it, then limitations are likely there and should be called out first Unless this is not an issue for you and you want to acknowledge and renew the loan.  


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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Post Options Post Options   Thanks (0) Thanks(0)   Quote Royal-NCO Quote  Post ReplyReply Direct Link To This Post Posted: 25/February/2017 at 5:50am
jjunket, 

You PM'd me on another forum.  We talked about this a couple of weeks ago.  I'll answer you here instead of replying to your other PM.

Based on your explanation, it sounds to me like you have yet to actually pick up the phone and call the collection agency that is dealing with your Ontario loan.  You MUST do this.  There is no other way around it.  You have to call them, give them your information, and then allow them to submit the application for approval from the ministry.

Whether or not it is a good idea to let your tax refunds cover the loans over a period of a few years because you want to avoid the potential damage to your credit report, is really debatable.  There is a chance that the collection/trade will age off, and this will go unnoticed by them for a number of years while you clear the debt, however as we discussed, because this debt has no statute of limitation, nothing stops them from reviving it on your credit report. 

Johnny and I have debated this before on Canadastudentdebt, but OP, I showed you the legislation that allows them to revive an old collection on a debt that has no statute of limitation.  This specifically applies to Equifax because they base the 6 year limit on date of last activity, contrasted with Transunion who bases it on date of first delinquency. 

If you have the means to do so, and there are no other extenuating circumstances ( errors by them, for example.), you really are best off to rehabilitate the loan.  

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Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 24/February/2017 at 6:43pm
The rehab program is popular and many people here have posted about it.....  you are experiencing a bureaucratic nightmare.  That is why I suggest you talk to your MP.  They can sometimes act on your behalf to get you in touch with the right people.
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