by Raymond » Sat Mar 10, 2007 12:00:00 AM
In this thread, Julie Ashton, ostensibly (from her other 3 posts that day) an employee at iQor, Inc formerly CBCL - Canadian Bonded Credit Limited - Now Iqor Collection Agency , responded to an inquiry by a somewhat alarmed Beverly Corbett about how to avoid being sued over her student loan delinquency. It's not clear if she means she has one loan with 2 components (federal and provincial) or 2 separate loans. Irregardless, Julie Ashton advised her to send in post dated cheques for ANY amount whatever and that would end the collection agency harassment, and I assume any impending lawsuits.
Corbett didn't mention the details of her loan(s), so it's impossible to tell what, if any, SOL's may apply to them. Still, it's a good idea for borrowers to know the SOL's of their particular loans because the limitation periods can be renewed by acknowledging the debt, unlike that of general consumer loans.
Here's a copy of the Federal Student Loans Act. It's advisable to pay real close attention to sections 3,4 and 5 which deal with how a collection agency can trick you into acknowledging a debt and restarting the limitation period all over again both BEFORE and AFTER it has expired. I'm not privy to whether or not this applies to Corbett's case but it certainly does to many others. It's also probable from the absurdity of Ashton's response and her susbsequent silence when challenged on it that this is what was happening here.
Ray
Canada Student Loans Act
GENERAL
Limitation period
19.1 (1) Subject to this section and section 19.2, no action or proceedings shall be taken to recover money owing under a guaranteed student loan more than six years after the day on which the money becomes due and payable.
Deduction and set-off
(2) Money owing under a guaranteed student loan may be recovered at any time by way of deduction from or set-off against any sum of money that may be due or payable by Her Majesty in right of Canada to the borrower or the estate or succession of the borrower.
Acknowledgment of liability
(3) If a borrower?s liability for money owing under a guaranteed student loan is acknowledged in accordance with subsection (4), the time during which the limitation period has run before the acknowledgment does not count in the calculation of that period.
Types of acknowledgments
(4) An acknowledgment of liability means
(a) a written promise to pay the money owing, signed by the borrower or his or her agent or other representative;
(b) a written acknowledgment of the money owing, signed by the borrower or his or her agent or other representative, whether or not a promise to pay can be implied from it and whether or not it contains a refusal to pay;
(c) a part payment by the borrower or his or her agent or other representative of any money owing; or
(d) any acknowledgment of the money owing made by the borrower, his or her agent or other representative or the trustee or administrator in the course of proceedings under the Bankruptcy and Insolvency Act or any other legislation dealing with the payment of debts.
Acknowledgment after expiry of limitation period
(5) If a borrower?s liability for money owing under a guaranteed student loan is acknowledged in accordance with subsection (4) after the expiry of the limitation period in respect of the loan, an action or proceedings to recover the money may, subject to subsections (3) and (6), be brought within six years after the date of the acknowledgment.
Limitation period suspended
(6) The running of a limitation period in respect of a guaranteed student loan is suspended during any period in which it is prohibited to commence or continue an action or other proceedings against the borrower to recover money owing under the loan.
Enforcement proceedings
(7) This section does not apply in respect of an action or proceedings relating to the execution, renewal or enforcement of a judgment.
2003, c. 15, s. 13.
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