As Jaimiedude said before, "It's sneeky and I love it."

There's no way I'd ever put a heavy student loan balance on a credit card, especially a heavy delinquent one. Yes, the return of those $100 checks was only posturing and bluffing but that's only part of the truth. Think of all the worse things that would happen if he were short paying off the huge amount shunted off on to the credit cards. Whenever, a collector starts off a phrase by "Honestly," watch out!

Basically, our resident collector is recommending the client do what CBV wanted him to do all along - put the student loan on his credit card(s). That way, CBV gets their snack and the client is stuck with $17,000 of debt on his high interest credit cards. And remember, these are not low interest revolving lines of credit.

Naturally, CBV, while they postured they wouldn't accept 100 bucks a month, nonetheless would have been quite happy to accept $17K or something significantly less. Clearly, that's as much (or more) than CBV expected to recover all along and so whose side is our practicing collection agent on?

Birds of a feather stick together.

Ray

It's been a while since I've collected student loans (CIBC) but from what I can remember, if the provincial government has made a claim on their portion, you won't be able to settle (and they'll also garnish your GST returns, garnish wages etc).

Quite simply, each agency has a set amount they are allowed to settle for, without getting the bank's approval. Depending how old the loan is, the settlement amount can be as much as 50%.

Giving that they are only wiping out $8,000, it's probably safe to say, they are not getting Scotia Bank's approval on the settlement, and are refusing anything less, knowing you have capability to pay the debt with available credit.

Scotia Bank isn't a bank that will usually sue. That I know, which is why I bank with them. They are a safe bank, as far as I'm concerned.

As far as returning your payments, I think you might be better off to stay focused on settling the account. Eventually once they realize you will not be paying the full balance, a payout of even $17k, they won't pass up (trust me!).

And, depending on your interest rate with Scotia Bank, it might actually be cheaper to do a balance transfer to one or more of your credit cards (especially if you have $25k available credit, I'm sure you have a decent interest rate... and if not, jesus.. ask for one!).

Honestly George, just play the game. Don't take them returning your cheques as a sign of intimidation. I don't know what the settlement criteria is with ScotiaBank student loans, but take the least they (can) offer without Bank approval and keep jamming them. Because honestly, it doesn't matter what collector you're dealing with, a settlement is better than nothing (argument or you sending in $100 cheques). :)

Student loans are commonly not reported to the credit bureaus.

Under Section 16(K) of Ontario's new Limitations Act of 2002, there is no limitation period on the provincial portion of student loans that were not stats barred by Jan.1, 2004. Since it took 6 years back then, any Ontario loan that was active or acknowledged before Jan. 1, 1998 would automatically fail the exemption. So unfortunately, your loan has no limitation period and will not be eligible to be included in bankruptcy proceedings until 10 years have elapsed since you were a student.

However, it seems that student loans are not taken to court very often. Perhaps the Government feels if someone couldn't pay it before being sued, they would be less able to after being sued when their credit was ruined.

CBV are absolute pathological liars. You would be absolutely insane to put $25,000 of student loans on credit cards @19% where, if you did default, unlike the Government, they would almost certainly take you to court and your credit score would be ruined.

As I said, I doubt they will take you to court. If you want to settle, offer a more reasonable payment schedule if you afford it and get it in writing before you make any payments. If they still balk, threaten them with bankruptcy and tell them to see how much they will get then.

I'm not sure what settlements rates are being accepted. Check some of the Canada Student Loan forums and see.

Ray

I had student loan from Scotia bank for $25000 (Ontario government portion) that I took from 1997 to 2000. It was sent to iQor, Inc formerly CBCL - Canadian Bonded Credit Limited - Now Iqor Collection Agency collection agency and I was making monthly payment of $100 for 3 years. It was all fine. Few months ago, the loan was handed over to CBV collection agency. I explained my financial difficulty and he asked me to write a hardship letter and will settle the amount for $17000. Scotia bank did not accept my offer reason given was that I have $35000 credit limit (from multiple credit cards) and I need to make $25000 to settle the amount using all the available credits. In the mean time collection agency had returned the cheques to me saying they will not accept my monthly $100 payment.

Again today, I received a call from collection agency stressing me to pay the $250000 using my credit cards. And I am giving the deadline of end of this month. If I fail to make the payment, they are threatening me that they will precede with the legal action (taking it to court).

My questions:

1. Collection agency threatened me that if they take the matter to court, I will be also responsible for the legal fee. Is it true and what’s the average legal fee?

2. I have offered to settle the total amount in four payments over four year period. But they are not accepting it. What can I do with it?
3. Neither Scotia Bank nor the collection agency has reported the dept to credit bureau. Why it has not been done and would they do in the future? (It’s student loan from 1997). I am wondering they can’t report to credit bureau because of any limitation in the agreement I signed with Scotia bank? Am I right here?

I would like to pay off the student loan but I do not have full $25000 on my hand to do it right now. How can I approach the collection agency or Scotia Bank to settle the loan? What are my options here? I need help please.