Hi John,   

I have quick question regarding student loans and mortgage applications. We are currently applying for a mortgage, however my gf has a student loan, she is still a full time student and will have 6 months after before repayment has to start. If we apply now does the student loan count against our qualify amount if it is not in repayment yet? One bank mentioned it didn't the other said since it was on the credit report it would count against could you help clarify?

Lending institutions grade people in various ways with respect to granting loans of any sort. Total debt service ratio (TDSR) is a big issue. However, mortgages are the prime target that lending institutions adjust their sights on, so they tend to be much more flexible with people. So, as long as there is no derogatory narrative associated with the student loan, you have the capacity to make the payments, and the lending institution is secure in their investment, things should work out well.

If you need a more in-depth assessment, please contact me privately. John LeBlanc - CFWG

Help!

I have been in school since 2000, attempting to complete my Bachelor's degree. In 2003, I declared bankruptcy, and was discharged. I am STILL attending university, while repaying my student loans through a credit counselling agency. I had to use the agency because the collection agents did not care for my situation, and harassed me constantly.   

The problem is that I am paying the CC agency 15% of my payments, and the Collection agency is still charging me interest. Is there any way to continue going to school, and prevent this gauging from continuing?

Dear Help Seeker,

You are paying 15% of your entire debt to a non-profit credit counseling firm? You do not have to pay a debt pooling organization 15% of your entire debt. You can contact us privately and we will get you set up on a comfortable monthly payment and avoid having to pay out 15% of your debt for nothing.

If you want some help, let us know.

John LeBlanc - CFWG

Hi, 
 
Simply asking a collection agency to send you 'proof' in writting (ie: copy of a contract etc) that you owe the debt...is that considered 'acknowledging the debt, for the purpose of re-setting the statute clock? 
 
Thanks in advanced! 
Lady in trouble!

Hi Lady,

Asking them to provide you with proof that the claim is real does not constitute as an acknowledgment of the debt. However, if you issue anything in writing to your creditor, or its third-party recovery or legal agent, then that would be risky in that sense. Simply talking to someone about a debt cannot be used to revive a debt that is statute barred. There has to be actual written and signed documentation or payment sent by the borrower in order to cause a debt to survive any limitations that are in place.

Lastly, if you do owe a debt, and it is statute barred, you still owe the money. The debt does not up and vanish.

John LeBlanc - CFWG

Hi John, 
 
I've just recently received a credit report from Equifax, as I was trying to determine if an outstanding CSL, which was guaranteed and paid by the government 14 years ago, would show on it. It did not. 
I am now being harassed by a CA.I do believe that this guaranteed CSL is stats barred. 
 
My question(s) is: 
 
Would a guaranteed CSL that is delinquent have to show up on a credit report if there was no activity within the past 6 years? 
What if there was activity with in the past 6 years, should it be on a credit report? 
 
John Paul

Hi John Paul,

Each case is unique. When a debt is statute barred, it does not mean that the debt is no longer due payable. So, if a creditor (or student loan provider) wants to pursue you for the debt, they are entitled to do this. The one thing that a creditor or moneylender cannot do to you is commence legal proceedings due to the limitation of actions that would be in force. They can continue effort to recover the debt.

A debt doesn’t necessarily have to show up on a credit report after it has been previously removed under the limitations that apply to credit reporting. If a collection agency is assigned to collect a debt that is statute barred, then there will likely be credit bureau activity in that regard. Now, if a debt is not barred, it is hard to say if it will be reported to the bureau. Again, each case is unique. Sometimes, student loans do not get reported.

The first thing you want to establish is if the student loan is actually statute barred. Then, you can start to piece things together for yourself.

John LeBlanc - CFWG

John,
 
I opened a letter from a lawyer (Mark Silverthorn) earlier today announcing to me that "I am scheduled to be sued by CAPITOL ONE for outstanding monies of $896.17...I immediately became suspicious, as the letter was in a P.O. Box which belongs to a my fathers business, in the town I haven't lived in for 12-15 years, so I contacted Capitol One, where I was asked to supply them with my account number...that's the other interesting point, to the best of my knowledge I have never had a Capitol One card, therefore I do not have an account # and nor is it referenced in the letter. The next request was for my SIN #, which I refused to give out. Call me paranoid, but I do not give this out often. Capitol One was no help at this point. But on a second call to them I got a more understanding rep who explained they have nothing on record, but also without an account # or SIN # she is limited in what she can look up, it was suggested I contact Equifax or Trans Union for a credit report. I contacted Equifax and had a credit report prepared online. At the same time I began "googling" Mark Silverthorn and got back a number of hits about a notorious collections agent/lawyer and this was how I found your site. 
The credit report came back clear, but there was an inquiry from CBCL ONT back in 2002 (I was able to link Silverthorn to this company through google and your posted 

 So here is the question:

The letter has my name mis-spelled, the address is not existent other than to a post office (without the appropriate box number on it) I am tempted to treat it as junk mail and just forget about it. Or should I contact this gentleman? My instinct tells me if I contact this person, I open myself up to harassing telephone calls, etc. Your advice?
 
S

Dear S,

If you have never applied for this line of credit, then you should not let it go unattended, as there is a lot of identity theft happening in the world today. If this is the case, then all you really have to do is deny owing the debt, and demand to see the original credit application and look at the signature. If it is not yours, then this is something you should take very seriously. If it is your debt, then you should pay it if you are able to.

This lawyer you are talking about used to represent CBCL, and also Collectcorp. He now represents a company called Global Collection Agency in Ontario. This letter you received was likely issued out from Global because he has an office right on site there. I very much doubt that this will ever escalate into an actual small claims court proceeding based on what you are describing.

Best of luck!

John LeBlanc – CFWG

 Dear CFW Group, 

 How often are people successful with CSL disability applications?

Dear Visitor, 

If a person is disabled, and he/she is seeking relief from the Canadian Government by having the account removed from active recovery, the success of this depends on the disability, and the disabled person’s financial situation. If the government is convinced that the disability will prevent him/her from paying the student loan over the longer-term, and the student loan presents more hardship with extenuating circumstances to the borrower’s table upon examination, then the government will likely remove the loan from active recovery. 

It is important to remember that the government does not just forgive the debt. They will remove it from active recovery and suspend the account pending future ability to repay. Loan forgiveness is not something that the government is known to grant, unless the borrower is incarcerated for a very long time, deceased, or institutionalized in some manner that prevents the borrower from ever becoming employed or in a  position to pay.  

Best of luck! 

John LeBlanc – CFWG

 Dear CFW Group, 

Can a collections agency garnish my wages? They say that they can but is it true? 

Dear visitor, 

If you are employed and earning enough to warrant a wage assignment, then a creditor who has anchored a judgment can request that an execution order be put into place to attach a percentage of your wages. The amount of attachment varies from province to province, however. 

If a collection agency proceeds with legal action on behalf of their client (your creditor), then the same applies. 

If you require our help, please contact us toll free 866-239-7889.