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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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8
LittleMissGreen · 13/04/2014 12:38

@mandakl - I was referring to this line in the article

"When the Government sold the loans to Erudio, it promised the existing terms and conditions would "not be affected". Both the Government and Erudio say passing information about deferrals to credit reference agencies isn't a change in the terms and conditions.

Erudio calls it an "operation practice change", while the Department for Business, Innovation and Skills says: "The terms and conditions of fixed term student loans, which are regulated under the Consumer Credit Act 1974, have not changed as a result of their sale to Erudio.
"

MariaJenny · 13/04/2014 12:38

man, I agree with all that. I was just thinking about the data protection condition, that's all.

mandakl · 13/04/2014 12:38

There are some example copies of the old agreements here

forums.moneysavingexpert.com/showthread.php?t=4945901

mandakl · 13/04/2014 12:42

Fair enough. They are trying to twist deferment on several different angles, so we need to be clear which bit we are referring to. Is hard on a thread like this though.

tigerbay201 · 13/04/2014 12:55

What I find particularly pernicious though is that the deferment form appears to make applying for deferment conditional upon accepting the proposed changes in terms and conditions. If you don't like the changes in the t&c then we're not going to let you apply for deferment (let alone actually defer).
Surely this cannot be legal?

erudioed · 13/04/2014 12:57

@littlemissgreen.
Yes, but the phrase quoted by ministers BIS and even erudio would surely bring into play the phrase "treating borrowers fairly at all times". Bis told me weeks ago that it was within the SLC to do that for some of the loans but chose not to...presumably because it was deemed too harsh for deferers.

mandakl · 13/04/2014 13:14

They can only legally turn you down for deferment if your income is over the threshold. End of.

No other reason.

They are trying to make you think they can with the forms, but they can't.

caroldecker · 13/04/2014 14:50

"treating borrowers fairly at all times" is common finance lingo and applies to all lenders. Putting data on CRA is standard practice now, may not have been many years ago - if the T&C allow it, I do not see Erudio doing it as "unfair" just because the previous lender did not.

erudioed · 13/04/2014 15:49

it may be common finance lingo but this deal was sold as being such because it is a special case...see the previous press releases.

erudioed · 13/04/2014 22:02

i think everyone will be interested to know that there has been a shift i the force and that all the questions we have been asking on this very site virtually all appear now on Erudio's webpage in the FAQs.
Here are 2 bits about CRAs...notice how the 'may' once again does not provide a definitive answer as they well now:

Q. Are you going to pass details of my loan to credit reference agencies?

A. We may pass details of your loan to credit reference agencies where your account was opened before 1998 in accordance with the terms and conditions of the loan. Where your account was opened in or after 1998 then we may pass details of your loan to credit reference agencies where (i) your account is in arrears or (ii) your account is in default or (iii) you have agreed that we may do this.
Where your account is shared and is in deferral it will be treated in the same way as any other form of loan which is in a payment holiday and will not be treated as a default.

Q. Is this a change in my agreement, I didn’t think the Student Loans Company did this previously?

A. No, your agreement is not changing. The owner of the loans has always been permitted to use credit reference agencies (CRAs) for the purposes of data validation. The Student Loans Company has registered defaults with CRAs and the terms and conditions have always permitted the Student Loans Company to share data in the way detailed above. Erudio Student Loans will be processing and managing student loans on a system which will use and register the data in a manner which facilitates data validation and supports responsible lending and borrowing.

They even note who carval investors and arrow global are in all this but again decide not to mention their close relationship to The Wilmington Trust or Honours Student Loans...thats interesting to me.

Another thing that is interesting is that the only thing they seem to have given a slight inch on is the 'may' in reference to CRAs, and that is so non-committal it could be irrelevant. All who were told handwriting a form was ok by Erudio, the way their FAQs read, will be getting a mail asking for the deferment form.
So basically, they were right all along and they have been combing this site to best come up with additional FAQs to quell any kind of uprising and continual questioning of their call center staff. Basically, they have become uniform now and have all the answers we have been asking for. However, i am not happy with many of those answers, especially the additional info. The even say it is info handed out by SLC and that it is for identification purposes. I thought loan numbers, DoB, and name should cover that. And it cant be for fraud purposes, who is going to commit a fraud on stealing my info...will they ring Erudio up and threaten to pay for me?

tigerbay201 · 13/04/2014 22:52

Some of those q & a's are gobsmackingly stoopid!

Why are you asking for homeowner / tenant / other status when I am applying for deferment?

This is a typical question to understand customer circumstances so that lenders can exercise their responsible lending obligations, including the requirement to show forbearance where appropriate.

What does this mean, in plain English?

Why do I need to disclose my address status when I am applying for deferment?

This information will allow us to better understand your current situation and contact you more effectively in case we need to ask you for further details whilst assessing your deferment application. Your address status does not impact your deferment application, but it is helpful if you do tick the box that applies to you.

In other words, you don't have to answer this question

Why do you need my address for the last 3 years when I am applying for deferment?

This information enables us to match the records that the Student Loans Company has provided to us. This helps us to verify that we are speaking to the correct person.

Just how many verifications do they need? They've sent me the form - it's got my name on it. No-one else is going to pay the loan for me.

These are certainly FAQ's but the answers are utter tripe, and about as clear as the deferment pack. Smoke and mirrors, pish and tush.

tigerbay201 · 13/04/2014 23:06

Why has the deferment form changed and why is it asking for more information?

The new information requested provides us with a better understanding of your current situation and enables us to process your deferment application accordingly. Also, even though the deferment form is now a bit more detailed, the vast majority of the information we are asking for was already covered previously, and is intended to enable us to help you go through this process as efficiently as possible.

What therefore, is the minority of information that was not covered previously, why do you require that information, and for what purpose? Also, if the vast majority of the information you are asking for was already covered previously, why are you asking for it again?

erudioed · 13/04/2014 23:20

i think the stupidity and lack of real logic in the answers its for one of or for two reasons.

  1. As we have to sign the form, it somehow authorises Erudio to pass on this specific info to CRAs and probably get paid somehow for it, or
  2. Because Erudio dont want to redesign the deferment form, start the process again and admit that they have asked for too much pointless info, which would be very newsworthy.
iwillwin123 · 13/04/2014 23:24

hello
here is a question for simonpipernel,could you please tell me which bank and branch gave you the advice not to set up a direct debt with erudio, because I would like to call them and try to get something in writing to confirm this
cheers

MariaJenny · 14/04/2014 07:07

Thanks for posting the FAQ extract which accords with what we thought - pre 1998 terms allow disclosure to CRAs so eruodio say they may do that disclosure - post only if you agree or in default etc. So the FAQ extra on data protection seems right. However they don't make it clear to post 1998 people on the form that they are giving a wider data protection consent than under their current terms at all clearly or at all.

Secondly the identification issue is a difficult one. I accept there is no need they need to know if you own a house or not. However it may be wise that they can have a few more identifying details as sometimes you get two Jane Smiths who graduated in the same year and data inherited from another body often is in a bit of a mess. Having some additional ways to check this is the right Jane Smith is a good idea. A date of birth however should be enough. NI number is probably not risky to give them although I suppose they could use that to double check things with HMRC so people might be reluctant to hand it over. Past addresses is probably wise from erudio's point of view as in 300,000 names and addresses you may well get a few who are similar or identical to each other and you need to distinguish them.

Powerpooh · 14/04/2014 07:37

Oh dear. I've just read their updates FAQ's.

Do I have to use Erudios form to defer?.... Yes.

Oopsy I haven't. What to do now? Contact them and ask for new forms or wait and see what happens?

Whole thing is a bloody debacle!!!

erudioed · 14/04/2014 08:00

mariajenny: if the deferment forms had our loan numbers typed on them or our customer reference number it would be hard to confuse them. Oh, wait a minute, the box in the top corner does have our customer reference number on it. Its hard to confuse that.

mandakl · 14/04/2014 08:24

If you can prove your income is below the threshold you are legally entitled to have your loan deferred.

There is nothing in law or the agreements saying you have to apply for deferment or do this on their form.

Erudio can write what bollox they like on their website but it doesn't change that fact one bit.

erudioed · 14/04/2014 08:41

mandakl: it looks like Erudio have drawn the battle lines on that one, they are going to take it through to the ombudsman i guess.

mandakl · 14/04/2014 08:45

The reason they want to know if you are in a mortgaged or rented home is that if they can get you out of deferment and you fail to pay, then if they know you are a property owner they can think about going to court for a charging order on the house.

All the extra the info they ask for above what SLC used to want is so they can work out who are the best people to target and who isn't worth the bother. They are debt collectors first and foremost.

Powerpooh · 14/04/2014 08:51

I was going to contact them to check the status of my application if they say its declined ask why I haven't been informed etc. I also want to know why they have my 1999 loan when its only affecting loans up to 1998.

My partner is determined for me not to phone them. As he put it the monkeys on they phone have a script to stick to to scare you in to thinking that you have to pay.

@ mandakl I was sure this was the case as I wrote to slc one year to defer and they allowed it.. its just a mess.

Another thing re DD. The DD mandate that erudio have submitted to my bank was signed by me over 17 years ago and its in my maiden name. How is this allowed? I know we're all at a loss with these people, but if anyone has any idea please chip in.
Thanks again folks.

Powerpooh · 14/04/2014 08:51

I was going to contact them to check the status of my application if they say its declined ask why I haven't been informed etc. I also want to know why they have my 1999 loan when its only affecting loans up to 1998.

My partner is determined for me not to phone them. As he put it the monkeys on they phone have a script to stick to to scare you in to thinking that you have to pay.

@ mandakl I was sure this was the case as I wrote to slc one year to defer and they allowed it.. its just a mess.

Another thing re DD. The DD mandate that erudio have submitted to my bank was signed by me over 17 years ago and its in my maiden name. How is this allowed? I know we're all at a loss with these people, but if anyone has any idea please chip in.
Thanks again folks.

Powerpooh · 14/04/2014 08:53

They WILL NOT be taking or putting anything on my house from a loan I got when I was 18!!! They can away and sh!te... sorry.. I had reached a state of calm. Now im annoyed again!!

mandakl · 14/04/2014 08:58

If you don't use their form then they don't get to phish for all that extra info, and they don't get people who can't have their loans reported to the credit reference agencies to sign their rights away.

So they will try their best to make people believe they have to use the forms, or if they do use them have to fill it all in and agree to it all.

Legally you don't, but they really want to hide that fact if they can get away with it.

mandakl · 14/04/2014 09:03

@Powerpooh Didn't mean to panic you. Sorry.

In the end they could do that with people who have property, which is why they are fishing for that info. It would be the end of a long process though, and you would have plenty of time to get it stopped in the unlikely event it got there. Realistically the want to know who has property so they know what threats and tactics short of legal action will be best to use. Legal action is expensive. Threats are cheap. That is how debt collectors think.

Still though...... www.google.co.uk/#q=arrow+global+ccj