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Deductions from earnings order

(12 Posts)
Creole Mon 25-Jun-07 10:22:23

When is a creditor likely to use this? I pay the Student’s loan company £30 a month, which is way short of what I am suppose to pay (I’m well below the threshold).

Can they apply the DEO given that I pay £30 each month regularly?

Creole Mon 25-Jun-07 10:23:22

Sorry I meant to say, I'm way above the threshold - so I can't apply for a deferment.

joash Mon 25-Jun-07 10:26:34

The student loans company will no think twice about using an attachment of earnings.

Creole Mon 25-Jun-07 11:15:04

Even though I pay them regularly albeit on a reduced amount?

joash Mon 25-Jun-07 12:42:12

Yup - the point it they base your payment on what you earn, not what you think you should pay them, and you did sign an agreement for this payment. They really don't care what your outgoings are. sorry

Creole Mon 25-Jun-07 21:29:08

I am based on the old style loan and have been paying them a reduced amount for about 2 years now. Every time a review is due, I simply send them an income and expediture form with an offer of payment. This time the guy seem to think i should be paying regardless of circumstances, which I am arguing I can't afford.
Surely this can't be right??

BetsyBoop Mon 25-Jun-07 23:02:48

does [http://www.direct.gov.uk/en/EducationAndLearning/UniversityAndHigherEducation/StudentFinance/Repayi ngStudentLoansCoursesStartingBefore1998/DG_10034849 this]] help?

BetsyBoop Mon 25-Jun-07 23:03:13

missed a bracket...

this

joash Mon 25-Jun-07 23:10:22

Mine is the old style and I had such a performance with them last year. DH and I had seperated and I was living on my student income (from a more recent course) plus my tax credits and housing benefit 9in total about £90 a week (not including HB) and two kids to keep. I completed and sent in my review - they would not believe that I had no other income. they started taking money from my bank account, which left me struggling to pay bills etc so I cancelled th Direct debit. They kept sending me letters saying that it was impossible for one woman and two children to live on that amount and I must have some undeclared income. It took three months before they finally conceeded and stopped harrassing me for money - but they never returned what they had taken by mistake. Their reasoning was that they still did not believe me, but felt that they couldn't get any money from me, but would be (and I quote) keeping an eye on my NI number to see what my earnings were.

Creole Tue 26-Jun-07 08:52:43

Ahh!

Many thanks Betsyboop, so they can't apply a deductions from earnings order unless they've taken you to court.

Joash, your case sounds soo familiar to mine. I believe as long as you keep paying them what you can afford, they can't take legal action. As I've said I've been doing it for years. Infact, I told them to go ahead and take me to court, that way I will only pay £1 a month - this has been 2 years now.

They are all talk, so its best to know your rights!

Creole

joash Tue 26-Jun-07 10:50:32

Creole - I am fully aware of my rights (I worked as, and trained other debt workers for an advice agency). Believe me - it is not a legal requirement for them to take you to court in order to have the money taken dircectly from your wages.
An organisation can also take legal action anytime - regardless of whether or not you pay them a nominal amount.
People are so unknowleadgeable about debt and such in this country. Even man of those who opt for bankruptcy, in the beleif that it all ends once they are discharged - may have a nasty shock in the future.

joash Tue 26-Jun-07 10:51:01

man??? - many

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