Scotia Bank Horror Stories... - ARC Judegement threat

ARC Judegement threat

Printed From: CanadaStudentDebt.ca
Category: Dealing with the Banks!
Forum Name: Scotia Bank Horror Stories...
Forum Description: Describe your dealings with Scotia
URL: https://www.canadastudentdebt.ca/forum_posts.asp?TID=5807
Printed Date: 27/March/2026 at 5:54am
Software Version: Web Wiz Forums 12.07 - https://www.webwizforums.com

Topic: ARC Judegement threat

Posted By: euland21
Subject: ARC Judegement threat
Date Posted: 08/June/2010 at 10:17am

Hi,

I had a student loan in 2000 thru OSAP but was cashed in at Scotia bank. I have had low paying jobs since leaving school and i've only made over $30000 once since then. i am currently a single mother of two, unemployed and on e.i for another 2 mths. I have tried making payments through credit counselling over the years and then I couldn't anymore. I received a call from ARC and spoke to two very unpleasant representatives. They hve threatened to file a judgement against my possible future employment? I have decided to file for bankruptcy because I have no other option at this time. what happens if they file a judgement before my bankruptcy? What should i do now? I can't afford any form of payment.

Replies:

Posted By: SolveStudentDebt
Date Posted: 08/June/2010 at 11:54am

What did credit counselling do to help you when you couldn't pay them any more??????

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

http://www.solvestudentdebt.com" rel="nofollow - solvestudentdebt.com

Posted By: euland21
Date Posted: 09/June/2010 at 4:16pm

nothing

Posted By: SolveStudentDebt
Date Posted: 10/June/2010 at 3:49pm

I figured. THey don't counsel anyone. They use "counselling" as a measure to make you feel like you are receiving something that protects your best interest. It is SO far from the truth. I sympathize with you, mate.

Johnny

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

http://www.solvestudentdebt.com" rel="nofollow - solvestudentdebt.com

Posted By: blackcat
Date Posted: 10/June/2010 at 4:43pm

Ugh, same thing happened to me with ARC collecting for Scotiabank. I was unfortunately scared into bankruptcy. :( You have time to file, first ARC must send something to you and you have like 2 or 3 weeks to respond (I think 3....) so you ignore it and use that time to file bankruptcy before it can go to court. The day the trustee files for you they can't proceed anymore.

Posted By: MtCurrie
Date Posted: 13/January/2013 at 4:17am

However, I have one question for you Johnny that I have not seen in this forum. If a risk-sharing loan is sold to a third party (ARC), is the protection from bankruptcy, given by the Act legislating the loan, transferred with it? Since the 3rd party is not a bank (I was told so by one of the many ARC's employee), hence cannot or would not fulfill the obligations set by the Act in terms of collection of the loan (income testing, can't ask for full payment, must work with the debtor, etc.), how could the 3rd party receive the benefit (i.e. prrotection) without meeting the obligations set by the Act? I'm sure SB sold this loans at a premium because of the protection these had.

The way my debt was handled by Scotia Bank's student loan immediately centre after I filed bankruptcy, indicated early on to me that my loan had been sold to ARC (I had an up to date account with the Scotia Bank, I still do though is now dormant, ARC doesn't have my correct contact details even today). While I paid the federal and provincial portion of my loan in full, I couldn't, though I was willing and able if given the ten years I was entitled according to the Act, do the same with risk-sharing portion held by the SB because it and its agencies refused to work with me. I gave up trying and now my loan can't be recovered, so I just ignore ARC when it pops up once in a while.

Posted By: SolveStudentDebt
Date Posted: 13/January/2013 at 6:14am

Student loans are not "sold" to third-party collection agencies. They are simply assigned to them for collection. They are then paid a percentage of what you pay as a commission. Their commission rate depends on the student loan provider, and of course the age of the account. Rates range from 15% to 40- sometimes 50%.

Now, the government of Canada can purchase a federal risk loan if the bank submits it for "put back", which is a CSL2 initiative. However, they can;t buy them ALL back, only a very small percentage of the bank's losses in any given year.

Student loans have their place and conditions set out int he BIA. The legislation applies to it no matter where the loan be go. The fact remains that your loan was not "purchased" by ARC. Only assigned for collection.

One thing to consider - the legislations describe the law. The problem is that the banks, collection agencies, and even the government does not abide by it a lot of the time. They find ways to manipulate it to their advantage because of the easy access to powerful lawyers they use to protect their best interests. That is the real power they have over you and I. It is an unfair system.