Harassed Over Student Loans? This Man Sued - and Won!


If you know anyone dealing with defaulted student loans, show them this story.

In this BC small claims case, one 'little guy' fought back against his abusive credit collectors -- and he won more than he had owed on his student loans. The grounds for his lawsuit was harassment leading to mental distress.

 While not news (the case was 2001) the judgement on Stephen Tobin versus Total Credit Recovery (BC) Limited should still remind people not to take abuse over their debt problems. But first, a quick explanation:

Canadians who don't keep up with their student loan payments are eventually declared in 'default.' Then they have to deal with collection agencies, who try to get those loans paid. The collection agencies are authorized by federal and provincial governments, but don't always follow the law in their zeal to collect that money.

 Some collectors use abusive, excessive or harassing calls to try and push people into coming up with some money. Threats and lies are not uncommon. However, this tactic often backfires, make people avoid contact or resist payment. Of course, the pressure of abuse and harassment also drives some people into depression or other illness. 

Mr. Tobin told the court that this is what happened to him. He had owed about $7,000, then paid through another party to settle that debt. However, after consideration of what he went through, he later used small claims court to sue Total Credit Recovery. And he won the maximum allowed in that court, which is $10,000.

Here are the reasons for judgement given by Judge P.R. Meyers in supporting Mr. Tobin's claim.


© Jeannine Mitchell 2009 - 2012