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Original poster

erudio student loans

999 replies

mrsbug · 17/03/2014 17:37

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 Smile)

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?

OP posts:
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mandakl · 12/04/2014 11:54

If you are not sure what your agreements said you can request copies from erudio with this. www.nationaldebtline.org/EW/sampleletters/sole-letters/Pages/Information-about-your-agreement-under-the-Consumer-Credit-Act-%28sole-name%29.aspx

ThoughtsPlease · 12/04/2014 12:02

Thanks mandakl

LittleMissGreen · 12/04/2014 12:04

Been having a think about the Hansard Committee report, especially around Q63 answer
"This is the oldest part of the debt, so in effect this will include a lot of people who are lost in the system and never going to pay....This is the rump of the student loans book"
Does anyone else feel uneasy and actually slightly affronted at being called the rump of anything just because we aren't massively high earners? It seems that have sold our loans on just because they can't be bothered with us anymore and don't really give a care to how we are really going to be treated afterwards as we are 'lost in the system and never going to pay'.

It has also occurred to me that people who are paying back these loans (of which there was a percentage of those sold) will now have to pay for their loan twice - paying back to Erudio, and also having to pay more in taxes at some point to cover the fact that the government made a loss on their loan when they didn't actually need to and that short fall is going to need to be covered.

mandakl · 12/04/2014 12:19

Yes, in other words we are filthy non payers who deserve to be thrown to the dogs.

Free123 · 12/04/2014 15:24

@mandaki

Thanks for the links to the T&C's. All is clear.

mandakl · 12/04/2014 16:15

twitter.com/paullewismoney/statuses/454951772038381568

Paul Lewis "I'll be doing something on this on You & Yours @BBCRadio4 on Monday."

Actingforson · 12/04/2014 20:55

Thank goodness I came across this site.

My son has had a student loan since 1998, never had any problems with deferrals before, now this so called debt collector is refusing to defer his loan.

Had a letter today stating that they will not accept his three months wage slips unless it is supported by his P60 and a letter from his employer confirming his wage (he only works part time & is way way below the threshold to start paying this loan.

I am going to deal with this on his behalf, so would be grateful for any advice.

LittleMissGreen · 12/04/2014 21:03

Acting for son
The first thing I would say is - complain to Erudio - that should put his account on hold whilst they look into it. At the same time complain to BIS and SLC - state that you have sent in the information required in the T&Cs and that they have refused to defer.
At the same time, if you use twitter contact Paul Lewis or you can email him address further up this page - he is doing regular articles on the BBC about this at the moment and any ammo that Erudio are making up as they go along would be useful for the cause.

sleepdeprivedmadwoman · 12/04/2014 21:08

Had email response from BIS which is the standard word for word response others have received.
It started along the lines of "I am sure you can appreciate whoever receives much correspondence, so can't respond to everything received" Essentially sod off, you are of little importance, and we have just put your name at the top of the attached letter we have sent everybody which actually doesn't address the concerns you raised.

mandakl · 13/04/2014 00:24

Complain and tell Erudio that they are fusing a valid deferment without goof cause as he meets the legal conditions entitling him to defer. Tell that you will complain to the FOS and report them to the FCA.

mandakl · 13/04/2014 00:24

*refusing

Actingforson · 13/04/2014 06:30

Thanks for the good advice.

Am I correct in thinking they cannot insist on anything more then three months payslips (under the terms of his loan agreement).

LittleMissGreen · 13/04/2014 08:00

The T&Cs say in number 6 - you can show your gross income for the relevant month is not more than deferment level and if you are asked that the average income in the next 3 months is unlikely to be over deferement level.
So there is absolutely no need for P60s etc and technically even one payslip fulfils the above.

mandakl · 13/04/2014 08:18

The P60 thing is just them being deliberately obstructive. They hope that if they demand evidence that some don't have, or they are not entitled to, then some people who ARE entitled to defer will instead give up trying or or be fooled into thinking they can't.

This is a debt collector. They don't make any money if you defer. They lose it.

So they will try everything in their power to put you off or con you out of deferment,

Powerpooh · 13/04/2014 08:55

I had given up worrying about this however I've come back on this thread and read all that I have missed since Friday. Now I'm in panic mode again. My head is filled with what if's. I've gone back to worrying about it.

My application for deferment has only been with them for 1 week but no acknowledgement that thwybhave received it. I didn't send their forms I just wrote a letter, but I provided 6 payslips (I get paid fortnightly) and my P60 and I am below the threshold. I've kept the DD in place that they have set up in case that hampers the deferment but Im so worried that they will take money from my account that I can ill afford.

I am deliberately staying away from calling them as I know they will lie. But we all need answers. . What to do??

Powerpooh · 13/04/2014 09:18

Re. Applting for copies of our credit agreement. Maybe we should all do that. By the time they sift through them all there is no way they will be able to reply to everyone within 12 days. Tie them up in their own mess!! Would be interesting to see how many have been "lost".

snoopy789 · 13/04/2014 09:32

Spent ages phoning them the other week and as soon as that happened the doubts crept into my mind. Have already put together the different scenarios in my head of what they might do, re: my deferment forms. They are basically debt collection, and they will behave as such, it is in their interests to do so. I think though that all of us in the same boat should support one another via this thread and share what has happened once they have processed the forms, and show what is happening in a public forum.

Powerpooh · 13/04/2014 10:06

True snoopy. However I also believe that members of Erudio are probably following this thread too.

mandakl · 13/04/2014 10:19

Thesis were unable to provide an agreement for one of mine. It's deferred so I haven't pushed on it. I'm holding that card in case they start playing silly buggers like Erudio.

MariaJenny · 13/04/2014 10:20

If people want to supply a P60 they can. It is not that we are saying that is wrong or prejudicial. If you have a low income a P60 helps prove that is so, but it just seems there is no legal right for them to demand the P60.

The change to data protection consents is a bigger issue as credit reference agency notices damage people's credit rating and could stop them getting a mortgage. If the Government said terms will not change and now Erudio on the forms are asking people to sign to accept a change then that is bad and the Information Commissioner, who deals with data protection issues, should be looking into it. People may well be signing the new form without realising it is expanding the original data protection consents given when the loan was taken out.

If I were Erudio once I had information in from most people I would probably then offer those in deferment some deal - pay half what is owed up front and we will write off the balance. That might be attractive to mothers who are at home or working part time who expect to get back into high paid work for 20 more years in due course once they turn 45. It would also get Erudio money up front now. Commercially that would seem a good offer to make to people.

erudioed · 13/04/2014 11:05

How about 15% of the loan if they paid 5p on the pound, after all they are expecting very little from deferers according to BIS. 50% from defaulters maybe. But of course, it just depends how long Erudio wants to keep its business open for. Maybe they dont want to hoover the money up in the short term and want to keep people on their books for many more years.
I do agree though, they are doing blanket collection of info right now so they can have a look into our bank accounts and financial potential...way too much in fact, especially considering what they should be doing is only checking whether we meet the criteria for deferment! They have just combined 2 separate tasks and i feel, that is why everything seems overboard in what they want/want us to sign over.

MariaJenny · 13/04/2014 12:09

Yes, entirely up to them what they seek to negotiate. Also I cannot remember if there is an age limit or time period on these loans. If you are never free of them and might work full time from 40 - 70 (very likely with many people these days even mothers now at home) then you might well want to pay them off as soon as you can. If women are about 42 at home with children and no earnings and the loan is written off at age 50 then it may not be worth paying them off early as you'd soon be free of them. I am assuming here that some of those deferring might have cash sums to pay them off or a richer partner who could do so. There will of course be many who will never earn enough or have enough to pay anything of it off.

LittleMissGreen · 13/04/2014 12:22

Not sure if this link has already been posted higher up on the thread.

Worrying turn as BIS is actively backing Erudio that they can change deferment!

MariaJenny · 13/04/2014 12:27

Thanks. That link is worth reading for anyone interested in the topic. It reports in effect as we discussed above that many of the older loans DO say your information can be passed to credit reference agencies as they included a very very broad data protection consent. Therefore for those with that clause (clause 16 above) it is a change of policy rather than a widening of terms.

mandakl · 13/04/2014 12:29

You are getting two things confused.

They cannot change the legal conditions for deferment. That your gross income is under the threshold for the specified months. That is fixed by law.

They can change the admin 'method' they use when doing the deferment, but the can't change those legal conditions no matter what.

If you don't want to use their 'method' but can prove your income then they have no right to refuse you.

They will try to con you into thinking they do, but they don't.