Erudio Student Loans Continued

[halfpricedebt]

Started a new thread following mrsbug's request.

I got an email from Erudio today telling me that an issue I raised with them on 27 March that was then completely ignored even though they asked for confirmation of my details to process the initial email. I gave them the details they requested and seven days later I still hadn't heard anything. So I wrote them a rather threatening complaint telling them if they didn't respond within 7 days I would report them to the relevant financial services. That was on 3 April and today they've told me that my complaint has been forwarded to their Customer Resolutions Team.

I wonder what they do?

Hello - after a bit of advice! I was a bit late sending my deferment form back- two weeks before deferment date, so predictably enough £170 has disappeared from my account today

I called them and they have my deferment - good news - but were unable to give any indication of how long it would take to process - bad but again predictable news.

However, £170 is more than I was expecting to repay. I owe £5,600 in total so was expecting it to be £93 + whatever for interest. The woman I spoke to said that my loan (from 1997 to 2000) had a maturity date of 2017 ie must be paid back by then...... ? So my payment have been allocated over the next two and a half years. Was this part of the SLC terms?

What happens when my salary goes back up over the threshold - say in 2016, or afterwards? Will they expect it back all at once? Help!!!

(Thanks )

@ LittleMissGreen

That's right - you have to contact Erudio

The Information Commissioner has a good guide here with sample letters:
ico.org.uk/for_the_public/personal_information

It's a legal requirement to comply.

I temped in the DPA department of a borough council and requests were taken very seriously ... can't guarantee that would be the case with Erudio - it might be best submitting any request to Capita or at least contacting them and seeing if they process requests for information they hold on you but under contacts they operate for different bodies ie. council/erudio/ etc

It may be that you can only get info via each separate business although that would seem odd as Capita may be able to share/access (all of) that information internally.

Probably wouldn't be good practice for them to do that which they may then not admit to... but worth a punt if you're worried

@HaveYouTried that doesn't sound right at all - I would have thought that any amount outstanding should just be cancelled when you reach 50 or after 25 years, even if you have only been paying back for a year. By their calculation you could end up paying it all back in a single payment if you went over the deferment limit a month before your 50th birthday - nonsensical.
I owe about £10K and have to pay back £175 a month. I took out loans over 4 years so have 5 years to pay them back. If you took loans over 5 years you have 7 years to pay them back. It doesn't say anywhere that you have to pay them back quicker if you are getting near to 'cancellation age'. That definitely sounds like a question to the financial conduct authority and BIS for clarification - as that would be a definite 'worsening of conditions' for borrowers if that becomes the case.

And thanks @emptycoffers I will write to Erudio :)

@ LittleMissGreen

That's right - you have to contact Erudio

The Information Commissioner has a good guide here with sample letters:
ico.org.uk/for_the_public/personal_information

It's a legal requirement to comply.

I temped in the DPA department of a borough council and requests were taken very seriously ... can't guarantee that would be the case with Erudio - it might be best submitting any request to Capita or at least contacting them and seeing if they process requests for information they hold on you but under contacts they operate for different bodies ie. council/erudio/ etc

It may be that you can only get info via each separate business although that would seem odd as Capita may be able to share/access (all of) that information internally.

Probably wouldn't be good practice for them to do that which they may then not admit to... but worth a punt if you're worried

@Haveyoutried this is the SLC repayment page for mortgage style loans it clearly details the 60 or 84 monthly instalments and subsequent cancellation if not paid back in time.

@HaveYouTriedARewardChart

That sounds very wrong. The terms of the loans are fixed at 60 monthly (or 84) payments depending on how many you had.

The agreement specifically say that the the monthly payment is calculated by diving the what is left to pay at the start of the year and dividing it by the number of remaining payments out of the 60.

In other words they can't increases the payments just because they are approaching the write off. The payments levels are fixed.

Don't think I explained that very well.

Basically your loan agreement gives details of how much your monthly payments are calculated.

Erudio can't just help themselves to more.

Complain and take Erudio to the FOS if needed.

@LittleMissGreen

That is very concerning. Any chance they could have picked up that info off social media or similar or perhaps got it sneakily from your employer?

Not that I think you are careless with that info, but some debt collectors like Arrow have been known to do that. Normally when trying to go after someone avoiding payment though, and not in cases like this.

Think I would certainly SAR them to find out where they go it, as picking it up from a not legitimate source is WAY out of order.

it seems that this forum has taken a bit of hammering in the guardian article's comments section...
Its a shame the article didnt pursue Zach Lewy's claim that they give info to CRAs to get info back from CRAs. Which i feel to be the true reason they havent folded on that one, not the efficiency argument they seem to roll out more when journalists come to town.

Thanks everyone. I have made payments in the past so I guess that means I was wrong to think they would split the remainder between 60 months. I'm some way off 50 or 25 years since graduation so no chance of cancellation any time soon!

I will call SLC in the morning and just check how many payments I've made - check erudio aren't trying to pull a fast one! The woman I spoke to obviously didn't understand the system properly and they clearly haven't got any information about the history of the loans..... not good!!

As soon as my deferment's processed I shall be complaining about everything that's wrong about this..... wish me luck for a speedy deferment - I can't afford any more of these payments.

No, they calculate each years payments by subtracting how many monthly payments you previously made off the 60, and dividing by that reduced number.

So if you made say 10 months of payment previously, the new monthly payment now would be what you owe in total divided by 50.

Still disgraceful that you were told such nonsense by Erudio staff, but we have come to expect errors and ignorance from them so not really surprised.

Hi all

I am a disabled man who is currently looking after my partner who has breast cancer. Erudio have taken payments from my bank account without permission. Erudio said they were investigating a complaint I raised about the Credit Reference Issue and that they would not take payments until they had issued their final response. Payments were taken about a week before the final response was sent - and I discovered these deductions whilst withdrawing money from the bank whilst my partner was undergoing emergency surgery for the breast cancer.

I have also not been given a copy of my loan agreements despite requesting them on at least three occasions over the past 8 and a half weeks. In my case, Erudio are failing to meet their obligations under the Credit Consumers Act.

I also requested that Erudio make reasonable adjustments in line with the Equality Act 2010 for a difficulty I am having - but this was rejected out of hand and I felt I was mocked for raising the request. This whole process of trying to legitimately defer is causing me grave concern.

I have always worked, and have never claimed benefits. My salary is £24,300 and I work in London (train pass is £4000 a year). I have never taken out any credit bar my mortgage and my student loans. I feel I am being treated very unfairly by Erudio, and I am not exaggerating when I claim that I will not be able to feed myself as a result of this huge mess that the Department of Business Innovation and Skills has created. Maybe I should turn up at the Department of Business Innovation and Skills offices at 1 Victoria Street, London every day to be fed for free in their staff canteen!

I was told when I took out these student loans that they would not be listed with Credit Reference Agencies. This has been the case for 20 years. Now I am being told something completely different and BIS look like they are trying to cover up their cock-up. Erudio have also put in writing that if I pay (even though I am perfectly entitled to defer) then they will not list my details with CRA's. However, if I exercise my right to defer then they will ensure that my credit rating is affected - and also my partners too!!!! My partner paid off her loan a few years ago - but as we live together then Erudio are claiming that her credit record will also be affected.

This is a nightmare. I avoid credit and only took out these student loans as they were from the government. If I knew 20 years ago that my loan would be passed on to an awful debt collection agency - even though my account is completely up to date - then I would simply not have done it.

I need a clean credit record more than ever at the moment as my partner and I face the challenges of dealing with her health issues.

David Willetts stated when the loans were sold on that “borrowers will remain protected.” That is clearly NOT the case and now both him and his dept are clearly trying to rid themselves of any responsibility for this atrocious mess.

Does anyone want to group together and speak with a solicitor? I think the past 8 weeks has been just the beginning, although I am pretty sure the last two days are the worst two days of my life.

If anyone else is having sleepless nights thanks to BIS and Erudio, then my heart goes out to you. By the way, I have never blogged before and was only inspired to do so after reading the Guardians article on Erudio. Thank god for good people like Emma Lunn - www.theguardian.com/money/2014/may/20/student-loan-erudio-under-fire

Sleep tight.

@lucky, I'm also disabled and have contacted them regarding equality act given the difficulties I faced filling in their 'application form' and been told it doesn't apply.

Have you filled in their form and included your pay slips for three months and other information requested? I'm asking as you didn't mention this in your post. Some had deferrment rejected on the grounds that things like overtime are included in the earnings figure, also earnings is earnings before tax and national insurance are taken and unfortunately costs like travel aren't taken into account either, nor is the London weighting.

My mp has taken up mine and others cases where I live. I'm not able to afford a solicitor to help unfortunately.

I wasn't well yesterday and couldn't check my bank account am going to check it today, they don't have my direct debit details anymore so I should be okay, they told me that the DD have nothing to do with erudio and can still be taken even when deferment is granted.

I hope you get it sorted okay.

I received an email today, stating they had received my letter of complaint, and that it was being passed onto their customer service department.

They also stated I was deferred and that in future they would enable overseas customers to receive a form via email and submit it.

I had complained in writing, as well as getting the FSA to complain for my that as an overseas customer, the letter had taken 6 weeks to arrive, and the responses had been so slow, they were deliberately putting me at a disadvantage.

I'm obviously happy with that, as well knowing that they are putting provisions in for overseas customers as well.

Thought you all would like to know.

I did complete the forms, sent some payslips, with a note on form saying no p60 available and a letter from my employer.

Hi Quirrel

Congratulations on your deferral.

I am overseas too, so it is good news that they say we can apply via email in future.

I sent in my form with the usual evidence (letter from wife) that the SLC used to ask for. Later, I mailed them some bank statements to support my request.

A week before my deferral was up, I called them and the person I spoke to was actually really helpful. At first she told me I had been sent a letter asking for more information. I asked her to check for my mail and she did so, and then she asked me if I wouldn't mind waiting while she spoke to somebody in the deferral dept. She was then able to confirm that my request has been accepted and I am to ignore the letter asking for more info when it arrives and wait for the one confirming deferral. I have since received an email confirming what I was told on the phone.

Not entirely sure why I am telling you all this, but it is good to know that some requests are successful without too much hassle.

Ok. I've only been intermittently following this thread so perhaps this has been covered already. I didn't fill out the form but sent a letter to Erudio and proof of benefits as I'm not working. I've now just received a letter off them saying 'The form was not signed and dated. Please complete the attached form again and return it to us as soon as possible. If you fail to return the form your monthly repayments will become due and if these repayments are not met your account will fall into arrears.'

I really don't want to sign their form in case it means I'm agreeing to something that differs to the original agreement. All of my loans are from 93-96.

What would be the best course of action to take now?

Thanks.

@LuckyEskimo4

I hope your partner makes a good recovery, already a stressful time for you without this as well, i am sure she is being looked after.

As far as affecting her credit rating because she lives with you, i would imagine if you have joint loans/mortgage that there is a possibility as her credit file will show associates, however if you have no joint loans it would not affect her credit rating.

For example, we had tenants in our house while hubby worked away, i have been getting debt collection letters for them, now i check my rating regularly and they do not show on my record in any way, i was also told by one of these agencies that it would not affect my credit rating in any way.

I am no expert though someone else here may have a better knowledge of these things than me.

I contacted my MP and he has been wonderful, its free and it might be worth you doing the same, its worth a try! A lot of people have contacted the FOS again as you have been through Erudio's complaints process and the reply wasn't satisfactory you are entitled to do, again worth a try as they are having to deal with a lot of inquiries regarding Erudio, i haven't quite reached the 8 weeks they allow themselves so i am awaiting the response, same complaint as yours regarding the CRA's and then i will take it further.

You may have legal insurance in with your house insurance, worth checking, i don't know if it would cover you but might be worth asking the question.

Just remember you are not on your own, lots of us are fighting the same battle, easy to say but try not to let it get to you too much, concentrate on your partner she is going to need you, and i wish her a speedy recovery, take care of yourself.

Dazzydog

One of the points I made in the letter was that it was through no fault of my own that I would go into arrears due to living overseas, their slow response and reply times.

I'm glad to see they listened. As a person overseas I wasn't too worried about the credit rating side of things, even though I still have a decent credit rating in the UK, but the thought of debt collectors knocking at my folks door where my only mail gets delivered did concern me.

@slam3000: my advice would be to fill out the form but not those details they have conceded are unnecessary in the MSE article you could find relatively easily. And send a cover letter stating you do not allow them to breach SLC's T&Cs in anyway if signing their form agrees to new T&Cs. That way, after you go through the Erudio complaints procedure, and if they do indeed breach T&Cs, you can follow up by complaining to the ombudsman with evidence you specifically stated you did not agree to new T&Cs. Also, state why you have not included certain details and quote the article if you need to. It is most important you get deferred first!

Just a quick update on my situation, I'm a SAHM who reluctantly filled in the form with bits blacked out, sent in a declaration by my husband and a blacked out bank statement to prove I receive child benefit. My deferment deadline passed on Monday and I am currently checking my bank account on a daily basis. My strategy has been......to not contact Erudio as if they F**k up and take money from my account then I have grounds for complaint.

I have just received a letter from Erudio that starts.......Thankyou for choosing to repay your Erudio Student Loan by Direct Debit. Followed by all my bank account information, an amount and a date-20th of June. My blood pressure has just hit the roof!!!!!!!

However, I have called them and told them I was recording our conversation. The girl that spoke to me was very nice and professional and apologised about the wording of the letter causing me distress and said they had basically sent it out to let me know I had another month before a payment would be taken as they had a backlog. I would hear about my deferment before 20th June and if not, I should call back.

Oh and I used the 01133189010 number so thanks to whoever it was who posted that.

So keep an eye out for this everyone and hopefully now your blood pressure wont hit the roof too!!!!

I just checked mine, yes its dated June, i didn't look because its for £0.00 and i just assumed it was for May, that will teach me to read things properly lol.

Also assumed it was £0.00 because i am on hold for 8 weeks, but that takes it past the 8 weeks, not so sure now, not ringing them again if they try and take money i have evidence they didn't want any lol.

Oh yes and i have had another email in response to a threat i will contact FOS. I am on hold for 7 days now, its coming down! Maybe they have more staff now.

@erudioed Thanks for your reply. If I do as you suggest, should I then go ahead and sign and date the form?

i cant really see any other way to get processed. i may be wrong but i cant really recall any other way for official forms than signing it. I didnt like doing it personally and have been calling since minute 1 for redesigned forms but it was never picked up on in time.
On consumer action group, a few are giving advice about getting someone else to sign it or such, and they seem to be very battle hardened. I dont understand it too much but maybe you will be able to get your head around it easier than me....and report back if you do make head or tail of it.
www.consumeractiongroup.co.uk/forum/forumdisplay.php?352-Student-loans-SLC