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Query whether lending institutions need to inform borrower they are sending loan to collections

I declared bankruptcy Jan. 05. I was discharged Nov. 05.
I was told by my trustee, my student loans would not likely be `cleared`, even though I had been in and out of school from Aug. 93 through to May 05.
2 loans were held by RBC; My loans were an Ontario Student Loan and the other was a Canada Student Loan. RBC contacted me with a repayment schedule for the Ontario Loan which I continue to honour. The other loan is what I have a grievance with. RBC informed me, upon my phone call inquiry, my Canada Loan was in bankruptcy status. Shortly after I received a document from Social Development Canada that `$0.00` was owing for my `CSL`. This letter along with the RBCs yearly annual statement for 06, 07, stated both the risk portion and guaranteed portion of my loan had `$0.00` owing, and a phone call to the RBC Student Loans Division stated my account had been `Paid in Full`, I thought I had been cleared of some of my old loans. Thus, when I received a letter from a collection agency threatening me that I had to start paying $1000.00 a month or I could be arrested, never own a home, have my car seized, my Registered Nursing and Ontario Teaching licence revoked, face up to 3 years in prison, and/or have my wages garnisheed upto 20%, I was astonished!
My question, as I prepare my own civil suit against this banking institution, is whether the bank had the responsibility to let me go back into repayment (as I did with my other 3 loans – 2 of which, have been paid off), and whether they had a legal responsibility to me (the borrower) that they were sending my loan to the government?

Posted from: Ontario

Posted from: Ontario

One Response to “Query whether lending institutions need to inform borrower they are sending loan to collections”

Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...

This is a legal issue that you would be best to discuss directly with a solicitor. This isn’t an area where a trustee would have any real involvement.