Collection Agencies - collection agency taking money out of my bank account - Canada

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RE: Darn Student Loans & Bankruptcy

Postby Raymond » Fri Dec 12, 2008 07:07:26 AM

Sure; any bank (not just CIBC) will offset one account which becomes delinquent with any other type of account you have with them; Visa, loan, line of credit etc. Why wouldn't they? The right of offset should be common sense. You'd have to be naive to expect any financial institution not to cover themselves in this way,

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RE: Darn Student Loans & Bankruptcy

Postby nameuser » Thu Dec 11, 2008 09:35:28 PM

CIBC Student loans will "off-set" a bank account (with CIBC) if you are in default of your student loan. They just take all of the money out at randon times if you don't have recent payments.

Alot of people would probably refer to it as a garnishee but it is different as there isn't a court order or anything, it's an agreement you make with them when you get a loan.

There is more info on that at www.canadastudentdebt.ca
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RE: Darn Student Loans & Bankruptcy

Postby Raymond » Thu Dec 11, 2008 08:38:02 PM

I assume most ex-students having financial problems will be aware of the new 7 year eligibility rule concerning bankruptcy. But here's a gloss on the blog below just in case they haven't.

http://www.student-loan-bankruptcy.ca/

I guess Raquel, bless her good heart, was trying to get in on the action.

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RE: collection agency taking money out of my bank account

Postby Raymond » Thu Dec 11, 2008 08:14:35 PM

Good point. You gotta pay attention to stuff like ADR's etc. or your ex-health club might end up emptying out your bank account or credit card.If you had a payment plan with a company paid through a certain bank account, make sure you change accounts.

Government departments don't always use the courts; they can go right in and seize money you owe them via seach and seizure certificates which have the same effect as a court writ.

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RE: collection agency taking money out of my bank account

Postby Raquelw » Thu Dec 11, 2008 08:13:10 PM

I see. My first time on this type of internet discussion.

Thank you.
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RE: collection agency taking money out of my bank account

Postby montyloree » Thu Dec 11, 2008 08:07:59 PM

hey raquelw...
no problem... our radar usually goes on when people get on the site and start pitching their service with their first post.

it's best to hang out and visit before you start putting your phone number on the site.... otherwise we're not sure who you are or if you have any credibility... that's the internet for you.
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RE: collection agency taking money out of my bank account

Postby Raymond » Thu Dec 11, 2008 08:33:27 PM

She's with David Sklar & Associates, a bankruptcy, insolvency and debt settlement outfit with 4 branches in the GTA. Her office is next to the Fairview Mall in North York, close to where Total Credit Recovery's head office is located.

http://www.davidsklar.com/pdf/David%20Sklar%20&%20Associates%20Application.pdf

Many debt settlers are ex-collection agents and Raquel sounds like she would fit in well at TCR, Deanna Natale's old alma mater.

Anyhow, the information she gives is alarmist. Wage garnishment procedures are similar in all the provinces but here's the one for Ontario; (See pages 11-13.)

http://www.attorneygeneral.jus.gov.on.ca/english/courts/guides/AfterJudgmentJan08EN.pdf

Wages can only be garnished after a debtor defaults on a court payment order obtained through a judgment. The Wages Act limit is 50% in Ontario, but I doubt many people get that. Even then, certain payments are exempt and the debtor can always ask for a garnishment hearing to lower the percentage in the event of difficult circumstances. Judges would tend to lower it to 10% or less if someone was having a hard time.

The provincial portion of certain student loans don't have an SOL if they went into default (after Jan.1, 1998, in Ont. for example) but they are eligible to be included in bankruptcy discharges 7 years after the student stops being a student (in Ontario). The federal portion is also dischargable

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RE: collection agency taking money out of my bank account

Postby Raquelw » Thu Dec 11, 2008 07:57:56 PM

My apology. I should not have said garnish. They must go to court to get the permision to garnish wages. However, Collection Agency will and will not hesitate to take money out of their account as long as they have the banking information from who ever they owe originally. When people get a loan or what ever it may be, they sign a contract that if they do not comply with their payment agreement, collection agency may collect on behalf of who ever they owe.

I am replying to help not to have any disagreement with anyone.
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RE: collection agency taking money out of my bank account

Postby Raquelw » Thu Dec 11, 2008 07:46:13 PM

BIA stands for Bankruptcy and Insolvency Act. I work for a Trustee in Bankruptcy for 8 years.
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RE: collection agency taking money out of my bank account

Postby montyloree » Thu Dec 11, 2008 07:44:24 PM

Oh yeah...
How can a collection agency garnish wages out of your account?
You don't have any legal contract with them.

I'm curious how you can tell people that?
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