Thank you Tptplayer for supplying the additional information that I was seeking. I now have the complete picture of your situation and can explain to you exactly what is happening.

Back in 1997 and 1998, you applied for and received a Guaranteed Provincial Student loan. Although this student loan was issued by the CIBC, it was "guaranteed" by the Province of Ontario should you default on the repayment of this student loan. This student loan was issued pursuant to the Ministry of Training, Colleges and Universities Act and falls under the Ontario Student Assistance Program more commonly referred to as OSAP.

When you defaulted on the repayment of this student loan in 2002, the Province of Ontario reimbursed the CIBC for the unpaid portion of this student loan and now becomes the creditor of your student loan.

The implications of this defaulted student loan can be serious as now this student loan falls under the provisions of Paragraph 16(1)(k) of the Ontario Limitations Act, 2002 which clearly states that there is NO LIMITATION PERIOD for the collection of a student loan issued under the Ministry of Training, Colleges and Universities Act. That means, that the Province of Ontario can follow you to your grave unless you take steps to resolve this outstanding student loan. It also means that the Province of Ontario can commence a legal action against you at any time to obtain a judgment and therefore seek an enforcement order in which to garnish your bank accounts and your wages. They can also seek a Writ of Seizure and Sale of your assets. Any judgment issued in any Ontario court is valid for life and does not require to be renewed.

Up until now, the Province of Ontario through the facilities of OSAP have attempted to collect on this defaulted student loan with limited success. Now, they have started to "tighten the screws".

First, they have referred this defaulted student loan to the Canada Revenue Agency for collection. The CRA has been authorized by OSAP to withhold all income tax refunds that relate to your provincial tax liability. As you may also know, starting in July 2011, the Province of Ontario is no longer paying the Ontario Tax Credits to the CRA which, in turn, in previous years, flowed these credits through to the taxpayer. And starting in July 2012, the Province of Ontario will start paying these Ontario Tax Credits on a monthly basis to those who qualify. Don't be too surprised if your monthly cheque somehow doesn't arrive at your residence. Guess what? The Province of Ontario will exercise their "right of set-off".

However, under subsection 164(2) of the Income Tax Act ( Canada ), the Canada Revenue Agency (CRA ) is permitted to without any monies payable to a taxpayer through the "right of set-off" for debts owing to Her Majesty in right of Canada or in right of a province and apply those monies against any outstanding liability. That would include not only income tax refunds but also the quarterly GST refund.

Second, OSAP has now referred your defaulted student loan to TCR for collection. And while you have adamantly stated that you refuse to talk to them, unfortunately, OSAP will not deal with your defaulted student loan except through TCR. Why? Because no collection agency will accept an assignment to collect on a student debt if the student is permitted to negotiate with OSAP. Collection agencies work strickly on commission. If they don't collect, they don't get paid. It's just that simple.

And while you may wish to contact the Canada Revenue Agency in Belleville, Ontario, they will only tell you that they have received a "Directive" from OSAP to seize any Provincial income taxes owing to you through the "right of set-off" and remit these monies to OSAP until further notice.

And if you are served with a Statement of Claim issued by the Attorney General of Ontario, well, you have just been served with a lawsuit for the recovery of your defaulted student loan. Obtaining a judgment now becomes "a piece of cake" and from this judgment, you can expect an enforcement order to follow such as garnishment of your bank accounts and wages.

If you are serious about rehabilitating your defaulted student loan out of collection with both TCR and the CRA, I would advise you to contact the Ministry of Government Services, Collection Management Unit, Non-Tax Revenue Management Branch, 40 Elm Street, Suite 41A, Sudbury, ON P3C 1S8. 1-800-387-5604.

Do not be surprised if you are referred back to TCR but as long as you are in collections, you are always subject to litigation. If you are able to rehabilitate this student loan, then your payments will be made each month to the Ministry in Sudbury, ON and all collection efforts will be terminated. The choice is up to you.

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Educating one Consumer at a time

Yes, call them at the number Footloose mentioned below. Alan Baggett may not think much of them, but they gotta be more pleasant than George Krieser's troop.

Assuming I am within my rights to do so, I will simply refuse to talk with tcr, and will deal with Revenue Canada in regards to anything I may owe to Revenue Canada. I am here wondering if anyone has any solid advice on how best to deal with them. I am not sure they have my phone number at this point.

Not much you can do, I guess. These guys are nasty. At least, watch they don't try to cheat you for more than you owe.

I haven't called, and don't plan to at this point. Not sure what the best thing is to do just yet.

TCR! Deanna Natale's old stomping ground. Say hello to George Krieser
next time you call.

Them is total credit recovery. I said them as I thought I was posting in a forum dedicated to this company. My apologies if I was mistaken.

Total credit recovery have been retained by the ministry of government services on behalf of the government of ontario. It would be an Ontario student loan. I don't know any more specifics than that.

The tax return withholdings were approximately 50% of my tax return, with the exception of this year they kept my entire return, which was around 400. This was to be put against my student loans, as was my understanding from a letter I received from the Government 8 or 9 years ago.

While the additional information that you supplied is very helpful, there is still some information that you have not supplied.

In your original post, you stated "Received a letter from them today regarding student loans...". Who is them?

In your following post, you stated "They claim that I owe the amount of 14,000 and it is from 12-14 years ago". Who are they collecting on behalf of and what specific debt or student loan are they collecting?

In your third post in response to a series of questions that I raised, you stated "...I receive my GST rebates but revenue Canada has been withholding between 300 and 400 annually from my tax returns." Why are they withholding these amounts and do these amounts represent your total tax refund or does it represent only a portion of your available tax refund?

You can contact the Canada Revenue Agency Non-Tax Collections in Belleville, Ontario at 1-855-340-2786 and enquire as to why you are having your tax refunds withheld. It may take some "fishing around" to find an answer, but if you are having your tax refunds withheld, they should be able to give you some informaion.

When you have some more answers to my questions, report your findings back on this forum.

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Educating one Consumer at a time

It does not specify, nor do I recall if it is federal or provincial. They were issued in the fall of 1997, and 1998. CIBC issued the funds. I defaulted in 2002, and have never made any arrangements with anyone regarding payments, nor have I signed anything. I receive my GST rebates, but revenue Canada has been withholding between 300 and 400 annually from my tax returns. My bank accounts are fine, and they have not garnished any wages. I have never had my accounts seized or had my wages garnished.

Thanks for any advice or help you can offer.

Your questions and comments are far too vague for a reply. That's like going to your doctor and saying that you have a pain in your stomach and how can he make it go away.

I need far more details including whether these loans are Federal or Provincial, exactly when they were issued, by whom, when you defaulted on them, any payments made or written signed acknowledgment of the loans since default, who is contacting you for repayment and what you have done up until now to repay any portion of these loans.

Also, has the Canada Revenue Agency withheld any tax refunds or GST rebates or garnished your wages or seized your bank accounts?

Have you had your wages garnished or bank accounts seized by a bank or other lending institution?

If you can provide answers to these questions, I can shed some light on your student loans and where you stand. I am assuming that all loans were received in Ontario.

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Educating one Consumer at a time