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?

@Qubit

'Assignment' is just the legal term for selling debts. So I'm afraid it means exactly that.

Oh yes I realise it does now. I just might not have done when I was younger!

Working all hours at the moment, so coming late to this yet again, but those links to the parliamentary questions are incredibly eye opening. Many thanks for posting them!
One thing that caught my attention was that they make mention in one of them that the level of repayment on our loans is too high as EARNINGS have to be £28K, that is a very large misrepresentation of the truth as it isn't earnings it is income. Presumably later loans with lower limits are actually only looking at earnings of £21K. Fascinating that they can then have a lot longer to pay their loans off, pre-tax etc when if they added up their child benefit, tax credits etc they are probably on as much income as us who have to pay off so much quicker (sorry minor rant, realise most people here are deferring so that isn't relevant to them!)

Also had to laugh when the comment was made that selling off loans to subsidise future loans was like a Ponzi scheme, and the answer was that the government wouldn't do something illegal, to which the chair answered along the lines of "I couldn't possibly comment".

My assertion is, that Erudio have made a claim , that I pay them the amount I borrowed from SLC. However, I will not recognise their claim until they prove it. Under law they must provide me with copies of my original agreements. The contract is only a contract if counter signed. I am now waiting for their response. Why would I give all the information they have demanded, to a debt collection agency?? Outrageous. They can make demands and it is my right to refute them.

I've just received a three page letter about my complaint. They have refuted everything except for admitting that their customer service is not what I should expect from them.

I'll share the other stuff in full unless anyone has already shared content from a letter they received?

Just received a 2 page letter, also refuting everything I said (what a surprise) but they have said that my account is now in repayment and in arrears and that they will take payments from 10th June!!! I have 2 letters from them saying that my account was frozen for 8 weeks while they investigated my complaint! does anyone know what terms, guidelines, legislations they are breaking by doing that? This is an absolute bloody farce. Would someone mind posting the original 1997 T&C's on here so I can see them please, I can't find mine.

They were posted on MSE a few weeks ago I think?

Will see if I can find a link.

If they have given you a final response then go to the FOS NOW.

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

I would be very interested to see the response. I have only heard mine, which was also a full rebuke, but recall it was their final answer on this matter!

Thanks Mandakl. They say they have no DD for me, though I have never changed my bank account. They have also said I was late with my deferral and that my deferment was due the 9.3.14 - my deferment form was dated the 1.2.14 so that is utter nonsense. it is just appalling.

i am trying to work out what they are allowed to ask for as evidence and what they are not. for deferment purposes.

'Erudio has adopted a different approach to the deferment application process than the SLC previously applied. The information will help us to confirm borrowers current gross income and determine their likely gross income ... ( references to complying to the 1998 SL regs etc) The method of the deferment process is not specified in those terms and conditions'

then they tell me that my account is in arrears because they have no DD and that I need to ring to pay them.

But I will be going to the ombudsman. Hubby is in Law, thank goodness and so I am getting free legal advice which would be costing a fortune otherwise.

Also, my loans are 1997, 1998 and 1999 but they are all being treated in the same way, it this correct? there was a data protection change in 1998 wasn't there?

Just seen that David Willetts is on Newsnight at 10.30. Hope someone tackles him about Erudio!

1998 and 1999 loans can only be reported to the CRAs if you default or if you give Erudio permission via their scammy forms. 1997 ones can allegedly be reported anyway. They can't treat all the same unless you let them.

but they have told me I have now defaulted! because they took 7 weeks to write back to me after I complained, they told me they had put my account on hold and have now put me in default! It is disgusting!

That is how debt collectors behave. Afraid this is not a normal company that sticks to the rules, in the letter or spirit of them. They are perfectly willing to screw you over for their gain without a seconds thought. Makes it all the more disgusting that the government sold these debts to them.

@ halfpricedebt That would be a big help if you could post their response, as it might give a clue to where Erudio are headed with all of this, also curious to know if any mysterious 'external agents' are mentioned!

@ LittleMissGreen - good point re the earnings vs income. I don't know if the income contingent loans are gross income or earnings, I hope it's earnings, because if it's income and the buyer of the loans uses the same criteria as Erudio for assessment, that will be a nightmare situation for a new graduate - lower threshold, starting salary, credit card debt, etc.

The chair's response re ponzi schemes and legality was an obvious reference to the sale of our loans... supports my conspiracy theory anyway on the amendment to the original Act :P

@ Qubit I think there could be mileage in the misselling idea - I hadn't a clue of the implications of the term 'assignment' when I was 18 - I have nieces that age now and could ask them, but I know they'll say it was a piece of work they had a deadline for at school, rather than some legal term referring to the sale of a debt. I do remember scrutinising the small print at the time - it was the first loan agreement I signed up to, and my parents had bugger all money to back me up if I got it wrong. Signing the agreement wasn't a decision I took lightly, and I couldn't have gone to Uni without it. If the small print had said we might sell your loans on to the private sector, I probably still wouldn't have realised the implications of that at 18, but at least when I was older and in that situation, I could look back and say oh shit, they warned me about that at the time.

@ waitingforgoddot I know it's difficult when you're on the receiving end, but they want to scare and intimidate, and they're good at it. It's one of Erudio's main aims, to put your account into default - good advice from mandakl to get your complaint into FOS immediately, there's time to do that and stop any claims for repayment (stress the urgency of that point to the FOS in your claim). It's pretty much a cut and paste of your complaint, but also rebut as much as you can on Erudio's response in your initial complaint to the FOS, it gives Erudio less to work with in their defence.

Saw this on SLC's repayment website - any use?

Allowing another person to access your account

We are required to adhere to the Data Protection Act, which prevents us from discussing your account with any other person.

www.studentloanrepayment.co.uk/portal/page?_pageid=93,3866948&_dad=portal&_schema=PORTAL

Use and disclosure of information

If you make repayments in relation to your Student Loans Account using our site we will disclose information that we collect from you, or that you provide to us, to Worldpay Ltd, P.O. Box 70, 3980 CB Bunnick, the Netherlands and Stichting Trusted Third Party Bibit Internet Payments, a foundation registered under Dutch law at the Chamber of Commerce in Utrecht under number NL30160208 (hereinafter jointly referred to as Worldpay Ltd).

Worldpay Ltd provide repayment collection services to us. Worldpay Ltd act as data processor on our behalf in this respect. Worldpay Ltd shall process the information you provide on our behalf only to process the collection of funds related to your repayment instruction.
Worldpay Ltd will not pass the information you provide to any third party other than the financial institution managing the chosen repayment method on your behalf.

www.studentloanrepayment.co.uk/portal/page?_pageid=93,3867586&_dad=portal&_schema=PORTAL

Linkies not working and too f'in knackered to figure out why, try googling:

studentloanrepayments use and disclosure of information and

studentloanrepayments third parties

Point is what?

The 1998 agreements already give consent for them to give information to contractors and anyone who is assigned or transferred the rights under the agreements. The 90-97 ones have the "if we judge appropriate" clause which is a hard to argue against catch-all for the the rest.

And what you've posted is also clearly in the T&Cs for use of the student loans repayment site.

(Not even sure the old style loans had an ART ID ever allowing us to use that direct site repayment anyway, so may be not be relevant to us. Never been listed as a payment option for me, ever)

Besides that you have taken the

"We are required to adhere to the Data Protection Act, which prevents us from discussing your account with any other person."

from a completely different page on the site, and it must be taken in context of that page which is all about giving a 3rd party consent to deal with your account on your behalf.

In that context it is certainly true that SLC or their contractors could not 'discuss' your account with anyone lease without explicit consent from you or proof of a power of attorney.

That is the same as any bank, or other sort of company you have an account or relationship would need. And as said, does not stop them from passing necessary details to contractors or any company that may be assigned a debt in the future.

Got home last night to discover I had finally received Erudio's official reply to my complaint. They were unable to uphold my complaint but confirmed that they have processed and accepted my deferral. (awaiting specific confirmation of that)

I deferred using the form (filled in with the minimum of information required) but did not sign it and included an additional letter refusing any changes to the original T&Cs and a signed declaration of my current income (and supporting evidence).

Hopefully this will mean future deferrals (assuming my circumstances dont change) will be easier. I can now only wait and see if they follow through on registering my deferred loan with CRAs and then what if any impact that has. (specifically on my ability to get a mortgage).

As as, if you think your complaint still has legs then take it to the FOS. Check with the FOS, but I think you have 6 months to do so from the date of the companies 'final response', or 6 months from when the 8 weeks expires from your original complaint if they never issue a final response?