Personal Finance

Offer to settle debt with collection agency

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Sep 9, 2007
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Offer to settle debt with collection agency

I have 10 year old collections account that I want to settle. There was no communication on the file for the past 8 years and the balance as of last communication is around ~$1,500 CAD. Is there a rule of thumb on how much the agencies are willing to accept in order to close the account?
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koleso wrote: I have 10 year old collections account that I want to settle. There was no communication on the file for the past 8 years and the balance as of last communication is around ~$1,500 CAD. Is there a rule of thumb on how much the agencies are willing to accept in order to close the account?
What type of debt? Different rules for different types of debt.
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shwab wrote: What type of debt? Different rules for different types of debt.
Tuition fees
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Apr 16, 2007
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koleso wrote: Tuition fees
Was it from an OSAP loan?
Aged student loans in collections will rarely settle for less than what's owed.
Note if this is indeed OSAP or NSL the agency that's doing the collection is doing just that, collecting. This is not a creditor acct where they will accept reductions on what's owing.
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mikeymike1 wrote: Was it from an OSAP loan?
Aged student loans in collections will rarely settle for less than what's owed.
Note if this is indeed OSAP or NSL the agency that's doing the collection is doing just that, collecting. This is not a creditor acct where they will accept reductions on what's owing.
No no, OSAP was a priority to pay. This is for additional classes I took at one of the educational institutions.
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koleso wrote: No no, OSAP was a priority to pay. This is for additional classes I took at one of the educational institutions.
Institutions never lend out their own money.
While most if not all have Financial Aid Programs for students they mainly farm out the student financing paper to a 3rd party financial institution.
Some schools that fall under the CAIS (Canadian Accredited Ind School) offer financial aid where they mirror some policies similar to osap for repayment as well as reporting rules.
You should find out who they are first.
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If there hasn't been any communication for 10 years, the statute of limitations have already passed. There is no action they can take on you now.

If you contact them and acknowledge the debt, it will start the clock over again.
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mikeymike1 wrote: Institutions never lend out their own money.
While most if not all have Financial Aid Programs for students they mainly farm out the student financing paper to a 3rd party financial institution.
Some schools that fall under the CAIS (Canadian Accredited Ind School) offer financial aid where they mirror some policies similar to osap for repayment as well as reporting rules.
You should find out who they are first.
They are Chang School of Continuing Education. This is where the file sits as "On hold" and CSCE sent the file to a collection agency.
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WetCoastGuy wrote: If there hasn't been any communication for 10 years, the statute of limitations have already passed. There is no action they can take on you now.

If you contact them and acknowledge the debt, it will start the clock over again.
I want to pay out the debt by offering the collection agency a lump sum payment.
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WetCoastGuy wrote: If there hasn't been any communication for 10 years, the statute of limitations have already passed. There is no action they can take on you now.

If you contact them and acknowledge the debt, it will start the clock over again.
That is not necessarily true.
People constantly seem to think student loans fall under the category of consumer retail loans when they do not. This is not a credit card account!

No limitation period 16(1) (k)
In the province of Ontario there is no limitation period for the recovery of student loans, medical loans, medical resident loans, awards or grants made under the Ministry of Training, Colleges and Universities Act including the Canada Student Financial Assistance Act and Canada Student Loan Act.
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koleso wrote: They are Chang School of Continuing Education. This is where the file sits as "On hold" and CSCE sent the file to a collection agency.
So they operate under the arm of Ryerson which means the financial assistance was granted through the parent institution Ryerson University.
This would definitely fall under the student loan category and provisions.

Call them and toss them an offer and see what they say.
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mikeymike1 wrote: So they operate under the arm of Ryerson which means the financial assistance was granted through the parent institution Ryerson University.
This would definitely fall under the student loan category and provisions.

Call them and toss them an offer and see what they say.
Ryerson asks to clear it with the collection agency. Will offer .60 on a dollar as someone here suggested. Thanks for the input
hvwozq wrote: You want to pay a debt that nobody talked about for 8 years. You deserve to get it back on your credit report as a (paid) R9.
Back? It was never there to begin with.

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