erudio student loans

[mrsbug]

Hi, I have an old student loan from 1998 which I have been deferring since then as I have never earned enough to pay it back (there are some advantages to being poor )

I recently had a letter from a company called erudio student loans saying they have bought my student loan from the government. All very reassuring about how the t and cs of my loan won't change, etc.

Now I've had the regular deferral letter from them and it's much more detailed than before. They want my bank details which I'm not really happy to give, and they say my details will be checked with a credit reference agency, which I don't think they used to do - my loan has never shown on my credit file.

Has anyone else had this? Do I have to give them this info?

I called Erudio on 31st and lodged a complaint with them about the passing of info to CRAs - i queried the legality of it. I received notification of this in the post today. It also confirmed that no payments would be collected until they had issued a response to my complaint (up to 8 weeks)

I just want to clarify something about my phonecall to Erudio the other day. The supervisor I spoke to said in no uncertain terms that Erudio has the right to send my info to credit rating agencies regardless of whether or not I qualify for deferment. He claims this is standard industry practice now and that Erudio are just doing what everyone else is obliged to do. Clearly this contradicts what others have been told by Erudio.

I am also a bit concerned about this comment from earlier in the thread...

"Erudio have adopted a different approach to the deferment application process which does not constitute a change to terms and conditions. The method of the deferment process is not part of the terms and conditions of the loan. Any decision about whether or not to offer short settlement is a matter for Erudio.”

As it seems to fit with what I was told by the supervisor I spoke to... in other words that Erudio haven't changed the LOAN T&Cs but they have changed the DEFERMENT T&Cs... I think the wording he was using was a bit misleading and what he probably meant was that Erudio has changed the CRITERIA for deferment... which of course is really worrying. I think this is something that needs looking into.

Basically we need to see in clear black and white what Erudio considers to be our terms and conditions, what THEIR actual criteria for deferment is, and what information they are actually entitled to... but instead we are getting a lot of misleading BS about what they WANT and what they would LIKE to have from us... I would like a rocket scooter and to have Scarlett Johansson as my girlfriend but i'm not entitled to those things.

Also I tried formulating a Plan B today.

It's a long story but I have a second bank account that I was supposed to shut down but never got around to... it is empty and I figured that if Erudio INSIST on having a direct debit set up they are welcome to one with this empty account.

HOWEVER when I went in to set up the direct debit the woman from the bank told me she would rather I didn't set up a direct debit with these guys as she didn't think they were legit, didn't think they could be trusted, and didn't think I should sign a single thing from them! She stopped just short of flat out refusing but made it clear she didn't think I should do it!

Powerpooh I have emailed my MP and BIZ, I will write to Erudio a I don't want them to have my email address. They have already phoned me - refused to tell me how they got my phone number, just deflected the question by saying it wasn't a marketing call.

The criteria to entitle you to deferment are set down in stone in legislation. Erudio cannot change them, no matter what they might say.

www.legislation.gov.uk/uksi/1998/211/made

1. Each year the lender will tell the borrower the new deferment level for the period between 1st September and the following 31st August. The borrower can defer making repayments of the loan if—

(a) the lender has not already asked him to repay the loan in full, and

(b) he can show—

(i) that his gross income for the relevant month is not more than the deferment level, and

(ii) if the lender asks, that his gross average monthly income during the 3 months immediately following the relevant month will not or is unlikely to be more than the deferment level.

"relevant month" means the month before the month in which the borrower asks for deferment

They can mess about all they like, but they can't override your right to defer if you meet those conditions.

They can't change the rules/law. End of.

I figured that... but that is what Erudio are claiming y'know?

And when I tried pointing out that no matter how they tried to word it or get around it with "clever" semantics a change was a change, they just refused to accept that.

Gotta give 'em points for trying.

hi there, i live in canada and let the slc know of my address 7 years ago when i moved here. i am under the threshold for earnings so have always had to defer. just got the erudio form. my issue is that i closed my english bank account in october. will they check to see if the account is active? i have no other english account. would probably have given them my canadian bank account dd details but read on their site they dont accept them?. should i just fill out the forms with the data i always give them and ignore the rest? or just draft a letter and attach my photocopied payslips to prove my gross income . i know a lot of this is already covered here but just mostly unsure about whether i default on the agreement if they see the bank account is closed. thanks for any advice in advance!

Erudio have made it into the National Press. There is an article in Tbe Independent today. Hope this helps move things along and get some clarity over this sticky change of terms and conditions in relation to deferrals. As far as I am concerned, the original agreement DID cover deferrals and did not state that people in deferrment would have this sensitive data registered with CRAs. Therefore I should not be suffering detriment just because the government chose to sell these loans on. I only earn £24300 for 40 hours a week and have had no pay rises since April 2012 (two years). My job requires me to have a degree - it was an essential part of the recruitment process. Unfortunately salaries for people with degrees have been eroded in recent years and I don't see why I should be punished by having a black mark added to my credit file just because the government has sold my loan to a debt collection agency even though I am perfectly entitled to defer. The stuff on this thread about the dept of BSI is not reassuring. They may not be aware what exactly Erudio are doing with the deferment, but hopefully more article in the national press will begin to get people who can make a differenxe look closely at this issue. Here is The Independent article. www.independent.co.uk/money/loans-credit/former-students-in-uproar-over-debt-collector-9240014.html WINE THEN BED I THINK. Good luck, champs :)

Shame the writer of that article completely missed the fact that Erudio are trying to put extra conditions on deferment that are not legal.

Erudio/Arrow lying through teeth about treating people fairly.

Also rubbish that it won't do any harm to your credit reports. Creditors seeing a loan that is not being paid back if deferred will NOT see that as a positive. A resulting higher amount of credit outstanding will also be a big negative as seen by lenders.

Lots of people are mentioning Direct Debits appearing on their bank accounts since Erudio took over the loans.

I've been in deferral ever since I had the loans and had the same bank account the whole time.

From the point where I could use a statement machine to check my DDs in branch I've been able to see that there has been a valid DD from SLC on my account - that must be at least 10 years so I don't think Erudio are doing anything that SLC didn't do there.

mandakl, read the comments on the article and maybe add one yourself, you know exactly whats going on!

Article in the Indy today. I'm on my phone so can't post the link. Simon Read says more to come next week.

Mandaki - which conditions other than deferral are you referring to?

@littlemissgreen,
i would imagine BIS passed on your telephone number if you left it with them. You wont be the first if that is the case.

Concerning CRAs and Erudio registering loans. I am still waiting for written confirmation this wont happen, and if it wont, then they need to make this uniform and design new forms, and tell us all about it!
One rule for one and another for everyone else and all that.

Great news about the Independent article! The first of many hopefully.
Concerning Experian though, who are quoted about how this info will be used that Erudio passes onto them, it is important to remember this press release about Arrow Global:

Arrow Global extends relationship with Experian

Nottingham, UK, 9th December – Experian, the global information services company, today announced that Arrow Global, a leading provider of debt purchase and receivables management solutions, has extended its long-term contract with Experian for the provision of specialist data and analytical services in the UK and Ireland.

Experian will continue to provide Arrow Global with data and analytical services until 2018. These services enable Arrow Global to more efficiently manage accounts, better understand specific circumstances of individual customers and to determine the recovery strategies across its diverse services book whilst ensuring customers are treated sensitively throughout the lifecycle.

Simon Waller, Head of Collections and Customer Management at Experian, commented: “This is an important partnership for Experian and we look forward to providing Arrow Global with data and analytical services for many years to come. Having a crystal clear view of individual customers through comprehensive data is becoming more important than ever for those who operate within the debt collection industry. The extension of this contract means Arrow Global will have access to a wide range of data, helping it better understand the debt portfolios it manages.”

Zach Lewy, Founder and Executive Director of Arrow Global, commented: “We are delighted to be extending this partnership with Experian, which has proved hugely successful over the last 18 months. It is vital we use the most robust data and analytical tools in order to more effectively recover debt for our customers. Continuing work with Experian will ensure we are able to provide the most efficient service for the debt portfolios we manage which includes more than £6 billion of receivables across over 3 million customers in a range of sectors.”

@emptycoffers - yes that is correct, my SLC DD has been amended to Erudio, so it's not technically a new DD. Everyone should have one setup, I seem to remember it was required to do so when originally applying for the loan. And it is in the original t&c that you notify them about changing bank account, so the DD can be updated.

I think I'm going to go with a letter request to defer, rather than trying to work with their form. Also, my NI number is on my payslips (as I guess most people's are), so if I send them back they will have my NI number from there.

I think I also need to send proof of my working tax credits and self employed income (page from tax return?). Can't see any real alternative at present.

This has all made me rather worried. I wonder whether anyone can answer a couple of questions?

Does anyone know what will happen if the loan deferment deadline is passed while Erudio is still processing the deferment? Mine is up on 10th April but I only received the forms this week (even though they are dated 26th March).

Also I am a SAHM, I have access to a joint bank account which my husband puts money in to and our family expenses come out of, the money that is put in is not MY income but family money. What supporting documents can I provide? I effectively have no income?? Bank statements would not be useful as the money being paid in is not mine but for the whole family.

NB I couldn't sleep last night because of this and I am quite stressed this morning although I know I should not have reason to be this way as I am not working so should not have to pay my loans back.

zipitydooda, remember, you are not alone in this. If you are not earning above the threshold, you will never have to pay anything...and if you were, you would be able to complain to the ombudsman (after complaining to Erudio) and i am sure you will be reimbursed for their error financially, as well as Erudio being fined. I know it is a major hassle, and not the same as it was with SLC because of Erudio asking for additional info and to agree to us consenting to CRA things being added to our T@Cs, but dont over stress. YOu have done nothing wrong, and if erudio are making it harder to defer, they will get in a lot of trouble when complaints start going to bodies that can impose sanctions! They have to allow for individual circumstances and cant expect everyone to be in the same position, or have the only proofs they suggest in their shambles of a deferment pack/letter, so they will make allowances, especially if you lodge an official compliant and get the right people who can make decisions looking at it.
Also, phone them and lodge an official complaint today...this means everything on your account will be suspended for up to 8 weeks whilst it is investigated. But your deferment will have already been suspended because of the change over. the new deferment covering letter should have a new date when you need to get everything back by.Hope it helps.

ekim are you sure about your direct debit just being.transferred. My one.from SLC was showing as cancelled and the one from Erudio was a brand new one. That is why my bank weren't happy.

ekim are you sure about your direct debit just being.transferred. My one.from SLC was showing as cancelled and the one from Erudio was a brand new one. That is why my bank weren't happy.

People on the CAG thread still seem to not be able to read the old SLC deferment forms properly.

They are actually very clear in that they even give a list of the disability etc related benefits that are excluded for gross income.

Any benefits not in that list CAN be included.

@ mandakl -

• and I think the same people are arguing this is something new imposed by Erudio - when in fact, it was always the case, since the very introduction of student loans that ONLY 'disability related benefits' were disregarded in calculating gross income.

The Indy article goes on to report this in a manner that suggests neither the journalist or the forum posters quoted actually understand the terms and conditions of the loans - which fundamentally isn't very helpful at all.

A lot of people are directing their anxieties on what Erudio MIGHT do rather than what they have already done and what they haven't already done. And there's a lot we simply just don't know yet and the speculation is very, very confusing and just exacerbates the worry and anxiety.

So far, we 'know' they have want to change the data processing procedures and rules previously adhered to by SLC.

We 'know' they are demanding more data than they need to process the deferment applications.

We 'don't know' whether they are going to be twats about processing the deferments.

We 'don't know' whether they will attempt to register deferred loans on peoples credit records.

And until they do, until we actually, really know, then they haven't actually shown their hand and all the scattergunning may well just result in making us look a bit mental.

While all the while, people are getting so scared shitless they're offering to pay back loans they're fully entitled to defer!!!
I mean - fuck sake - with all this fricking PANIC!!! are we doing their work for them?

It's great that people are preparing for what may well happen.
It's great that people are using their contacts to get the media on board.

Because, on the balance of probabilities, Erudio will probably turn out to be bad bastards - but you can't be hanged for what you 'might' do - we have to let them do it first.

That's also why it's important not to peddle blatant untruths like they can't use normal non disability payments as income.

For example on that one someone could refuse to pay on a completely false basis, meaning the Erudio would be entitled to wreck their credit file with an actual default rather than a normal loan entry, would be entitled to demand the whole amount of the loan be paid immediately, and would be entitled to take you to court for the whole loan. The threads on certain forums are peddling dangerous nonsense that could land people in a significant amount of grief if it is believed and acted upon.

As you say, Erudio are playing fast and loose with some things, but the assumption that everything they are doing is wrong is highly dangerous.