See my July 21, 2007 post to blogger "Optingout" who was having a similar problem.

/threadview/685/3446/2.html

Ray

What the heck is the Jackson method?

Did you make payments covering both portions during the last 6 years or to just one of them? Making a payment within that period of time will reset the clock for that portion only.

Paying it off is not an option, so all that remains is to

1) Ignore it until another 6 years passes

or

2) Arrange a payment schedule you can afford. That might be moot because, if you can afford hardly anything, it's not going to help much. Once a collection agency gets a whiff of even a small payment, like a seagull smelling a piece of KFC chicken, it drives them into a frenzy of harassing calls yearning for more blood. The histrionics are worthy of an Oscar - or should I say a "Condie?"

I'm not familiar with the particulars of student loan negotiations; I've been out of university for a long time. There's a lot of people in your position sharing their experience over on the Canadian Financial Wellness Student Loan Forum. You might even want to hire the moderator, John Leblanc for a nominal fee to help you negotiate if you decide to settle. Mark Silverthorn, the former collection lawyer, would be way better but those guys want lots of money. Whatever, you shouldn't try to go it alone against those sharks if you try to settle; most of them are mentally unstable pathological liars.

If you want to get rid of harassing phone calls, now that's something I really, really really know a lot about. It's duck soup. See the "Jackson Method (patent pending). My only regret is that I couldn't have everyone's calls directed to my place. That would be a great way of making a living - providing a call forwarding service to my number for people being hassled by collection agents.

But then, maybe it wouldn't be right charging people for something that was so darn enjoyable; i.e., telling collection agents what miserable no good low-lifes they are. Still, it sounds like the perfect job!

Ray

Thank you for sharing the information about stats barred. I researched it myself this morning and found that that condition does not apply if I have made payments to the collector...I have. So, I think stats barred is no longer applicable to me.

So now, what am I left with for options? Do I have to pay this in full ( which I don't see how I can) or do they HAVE to accept what I offer them for monthly payments?

I can't handle the rude calls anymore, and if I change my number they will only harass my mom until she gives them my number.... I want to pay it off, but when they are adding dailing interest to the principle, it seems rediculous to pay them anything as I can't afford to pay the interest they add on to get the principle down at all. Just flushing money down the toilet it seems to try and give them anything.

I wish I had never taken out that loan.

Stephanie

Stats barred means the government can't take any legal action against you to recover money owing except those involving the right of offset, such as witholding your GST and income tax refunds. However, they can hire a collection agent to nag and scream bloody murder at you about it forever. Ask Mark Silverthorn, if you don't belive me.

Your loan was originally divided into at least a federal and a provincial portion. The collection of those 2 may have been further subdivided since then but, irregardless, those 2 Acts will ultimately govern what collection efforts will be allowed.

The federal student loan program has been replaced by the Canada Financial Student Assistance Act, which has been updated in 2000 and 2001 by Bill C28, Part 3. You should read all of Sections 16.1 and 16.2 so as to know what applies to your individual loan.

http://laws.justice.gc.ca/en/ShowFullDoc/cs/S-22.7///en

The Federal Portion has a Limitation of Actions of 6 years, subject to revivals and renewals via signed written acknowledgements. Also, as you surmized, as per Sections 16.1(6) and 16.2 (8) of the Act, the running of the limitation period may be suspended by interest relief periods.

The wording is that a suspension occurs during any period which no legal action may be commenced. That would seeem to indicate an interest relief period. (I was unable to find any rulings on to confirm that though, and so you should check it out with someone qualified in that area.)

That's important because, due to the age of your loan and the fact that you had interest relief periods for up to 30 months, your case may be on the verge of being stats barred. That may be why you are now getting those collection calls. Collectors often do that as a loan nears its stats barred date as a last gasp attempt at recovery. Or, at least, they try to trick you into providing a written acknowledgment of the loan to renew the limitation period.

Similarly, Section 14 of the Student Financial Assisitance Act of 2002 of Alberta gives a 6 year limitation period for the start of legal action for student loans. Notably, no mention is made of any provision for the suspension of the running of a limitation period by interest relief periods.

http://www.canlii.org/ab/laws/sta/s-20.5/20030217/whole.html

HI,
I do not know what stats barred means?My loans are VERy old, like I got them out 8 or 9 years ago. I had them in interest relief status as long as I could, it went to collection last year I think.

How do you know if the load went stats barred? Also, can they insist that we sell our house or van to pay this? I think my loan from them was about $10,000? Also, with payments, do they have to take what you offer per month? We have no savings at all, so I jsut don't understand how they think they'll get blood from a stone?

Thanks, Stpehanie

Settle if you can, but perhaps they can't do anything more than hold your GST and income tax refunds back. But if you don't work, then your husband files a joint return anyway. If the federal and provincial portions are older than 6 years, they may be stats barred. Student loans can be revived even if they are stats barred by providing written acknowledgments even if those written acknowledgments contain a REFUSAL to pay so watch what you do. It's best to keep negotiations to the telephone; otherwise, collection agencies can sucker people into reviving loans by filling out those income forms they are forever sending out to trap people.

RBC would probably do 80% settlement. Most likely 80% of the principle balance but the collection agency will not tell you that.

If you can show 0 income 0 assets, they'd probably go lower.

If you have one of the statements from just before they wrote the account off, it should give you an idea of the principle balance though.

HI, i AM WONDERING ONCE A STUDENT LOAN GOES TO COLLECTION- ALLIANCE ONE LTD from toronto- will the royal bank accept less than the amount I borrowed initially as payment in full? What is generally the amount accepted, I mean, what percentage of the total oweing are they usually likely to accept. Or is it now up to the collection agency? They are changing insane amounts of interest, and I would like to settle this if it's possible.

He told me today (Alliance one) that they don't want to accept payments, they want it IN FULL , NOW. I am not working, am a stay at home mom. My husband works, my name is not on our home title, nothign is really mine. I have no savings or anything. What can they do?