Erudio Student Loans Continued part 3

[erudioed]

I dont know if this is the right way to do it and i apologise if it isn't but this is the continuation of www.mumsnet.com/Talk/legal_money_matters/a2057131-Erudio-Student-Loans-Continued

www.ombudsman.org.uk/make-a-complaint/how-to-complain

I think we all should complain about BIS to the ombudsman. I think it is David Willets, Vince Cable and that BIS department that have been responsible for all this stress and sleepness nights.

I know it sounds extreme, but as Erudio did some awful things to me back in early April then I am considering making a claim for a judicial review for BIS's part in this crisis. This all relates to Article 14 of the Human Rights Act. I am making a decision this week after speaking with a solicitor on Wednesday. This thing is bigger than just Erudio - and like Minimoosh - I think we have to fight or face more stresses in the future. After all, I have 6 more deferments to go before I reach the point where this student loan will be written off and I am NOT going to put up with Erudio's bad (and in my opinion illegal) behavior for any of those future deferment periods.

I have that problem also Midnight Frank - I'm self employed and my deferment ends 9th March but Tax year 4th April.

I have realised that they have asked for different info each time they write to me and so I hope that helps me when I complain to the Ombudsman as that can not be seen as dealing with people fairly.

I'm with you erudito, the way they have operated has been disgusting and for the Government to simply was their hands of it is appalling. I can not believe that they way erudio has behaved is legal let alone fair. I also have data protection issues with, as a landlord, being asked to provide a tenancy agreement or a letter from my tenant! I have a legal obligation to keep their data safe, let alone embroil them directly on what is a personal financial matter.

but we have seen just how sympathetic the Government have been to the disabled being penalised through the bedroom tax etc, shocking disregard for the very people they are meant to serve.

Hi everyone:
Am a bit lost. Went to the Financial Ombudsman about Erudio and they said that they don't deal with that type of loan!? My loan is from 97/98 (income dependent). They said that there is a process independent of them (involved in the complaints process) or go to the citizens advise bureau? Anyone else approached F Ombudsman for help?
Thanks.
Michelle

For those querying DDs. I am currently repaying Erudio as above deferment level. I cancelled the DD that they set up on my account. I am repaying by monthly bank transfer. They aren't 100% happy about that as "We like to keep control" but as long as I don't default on payment they can't actually do anything about it.

@ midnightfrank Deferment can be backdated up to 3 months from the date Erudio accepts the deferment application - the wording in the 1998 Regulations (under Schedule 2, Part 1) is:

"Each deferment period will last for 12 months beginning on a date the lender tells the borrower. This date will be not more than three months before or two months after the date the lender accepts the borrower’s deferment application".

@ snoopy789 The FOS only deal with pre-1998 mortgage style loans regulated by the Consumer Credit Act. Are all of your loans the new income contingent type? I think it was posted on here, or the MSE thread, that if you have both types of loan, the SLC will continue to administer those (I could be wrong about that though, but would be worth checking with the SLC).

There are details on page 4 here of the various ombudsman services, depends on the type of loan and where in the U.K. you took the loans out:

www.slc.co.uk/media/426356/ppc008_june_2012_online.pdf

I'm in Scotland and according to the info in the link, I shouldn't be going to the FOS either, so will have to check that I'm sending my complaint to the right ombudsman!

Are you sure it's an income contingent loan you have (you said 1997/98)?

You shouldn't have to deal with Erudio at all for an income contingent loan, they only bought the old mortgage style loans.

A loan taken in 1997 would be the old mortgage style, and IS covered by the FOS.

You need to go back to them and insist they take the complaint.

@minimoosh

You won't normally have a mix of loan types. If you started your course in say 97 on the mortgage style loans you would stay on that type of loan in 98-99, or even 2000 for a 4 years degree.

If you started in 98 the you would be on the new style loan for the rest of your course.

In other words you carried on in what system you started with.

Thanks madakl, think I might have got it muddled with reports that loans will stay with the SLC if you were affected by the previous sell offs... or something like that, can't quite remember!

It's if you have loans that were previously sold to Thesis Servicing or Honours Student loans and now have other sold to Erudio that SLC are supposed to stay in charge of deferment.

Basically so you only have one set of forms to do which defers the lot.

Someone made the point, on MSE I think, that it makes sense otherwise its not fair to have to defer twice and you could end up with the situation where one lot gets deferred and the other doesn't. It's got to be all or none, so one company has to do both lots, and makes sense for SLC to remain that 3rd party that processes the deferrals.

I do wonder if SLC will continue to use the forms they always have though? Or will they switch to more intrusive Erudio style ones?

I can't see the SLC being more intrusive or strict with evidence, etc, because of the politics of it all, any hard stance in the way they process deferments now would be too controversial when they've pretty much stuck to the same process for the last 20 years, especially with loan cancellations looming? But then the loans sale itself was controversial enough and they went ahead, so who knows.

Someone made the point on here (or MSE forum) about borrowers being treated differently on reporting to the CRA's, depending on who is processing the deferment - there could be some mileage in that? I suppose Erudio would just argue that they're better at promoting responsible borrowing and lending than the SLC ever was!

UPDATE.....

I have been successfully deferred!!!

I originally wrote a letter and supplied evidence, backed up with email a few weeks later. Contacted Erudio to check status and was told they couldn't read my payslips. I was approaching my renewal daye and still hadn't heard from them so I contacted FOS who requested that all collection activity be suspended until my deferment was granted.

I then on the same day got a letter saying they were looking into my complaint and another copy of the application form for me to complete and sign.

I wrote another letter stating I was not happy about using their forms and that I had blacked out the areas I did not agree with. Oh and I resent my evidence for a 3rd time.

2 days after they recieved all this information letter was generated to say I was deferred.

I am now deferred until 23rd June next year however my deferment actually ended 22 May this year. So I have no clue if they have put me in default or not for the last month. I have checked my credit file on Noddle (only cos it's free) and nothing is showing up other than an identity check Erudio did back in April.

@minimoosh

I can't see any reason why they should report loans differently to the CRAs depending on who processes the deferments. Makes no sense at at, so I assume that was just an unfounded bit of idle speculation.

@Powerpooh

The delay was entirely their fault, so if they put you in default due to that it would be another thing to take them to the FOS over.

I expect they will just 'forget' that period existed though.

@ Powerpooh Congrats on getting your deferment :)

By putting your deferment date forward a month, it looks to me like Erudio are going to say you're due a repayment for the month not covered by deferment? Do you have a DD set up, or have they requested a payment? They can't put your account in default so soon, but that might be their longer term plan, over the one payment they claim is due - can you tell I don't trust Erudio much?!

@ mandakl Your point re Erudio forgetting that one month, it could be intentional, so they can drag it up later down the line and claim we've not met our obligations under the agreement - total BS, but we shouldn't give them anything to work with. If anyone sees a 'gap' between last deferment ending and the new deferment starting, get them to confirm in writing that the gap's covered by deferment, then thank them for granting the freebie period :)

I don't trust them either. Not one jot. There is still a DD set up on my account. They made no attempt to take money when my last deferment ended, however I had gone to the FOS by that point and Erudio had had a letter by that point. In all correspondence I've had with Erudio I have reiterated the point they have had all of the necessary information needed to defer since 9th April, a good 6 weeks before my deferment ended. It's therefore their fault by delaying, not mine.

Hi y'all. I am still waiting for a response to my letter requesting deferment sent on 2nd May and signed for by them. My deferment ends on 9th June so I have emailed them to follow up. I have also notified them I have changed banks and cancelled my DD.

If they find that I am liable to repay (which I am definitely not as personal income is £0) I assume they have to send me some repayment figures and information as to how to pay? I expect to hear nothing from them until it's too late but I don't want them to say I'm in default. I'd rather they took money and I claim it back, because isn't it right they can refuse to write off an account with default logged?

They are taking up far too much space in my head at the moment... I'm so glad you are all here, strength in numbers!

Not quite. The conditions is that they can only refuse a write off if you "behind on any repayments under any agreement for a student loan".

Sorry I've been out of the loop - been really busy with work.

I do plan to submit an FOI request about who else was in the running to get our loans which I think wil be interesting when it's pretty clear Arrow are the first and only port of call for the government.

I am very concerned about my credit rating because the letter I received from erudio in response to my complaint basically says they are well within their rights to do so. I'm fairly certain that all of us in deferment have now had our credit files assaulted. If this has ramifications for me to be able to get a loan or a mortgage I wil have to think about how I deal with that - without legal aid now we are all screwed if we want to sue anyone.

What is the plan now we know that erudio say they are operating withinh the law? The key thing we were told is that we wouldn't notice a change in how our loans are managed and wouldn't be effected - we have noticed and we are effected so what is the plan?

If there isn't one then why are we still talking about it?

Also, interesting that people have brought up the stuff about the FPN.

When I first received a letter from Erudio they included that. I read it through before phoning them up and saying I wouldn't be signing anything that gave a private company permission to tell CRAs that I have student loans.

Then what did Erudio do? They put that FPN in the deferment form so that if anyone signed the form they were automatically giving permission. Why would somebody do that if they weren't trying to manipulate with their own agenda?

Hi All, Amazing result from Erudio, there is hope!

Sorry I've not been on here for a while. Update on my progress with Erudio;
My origianl problems:

• Having never heard of them, them taking money from my bank account three times and incurred bank charges before even informing me they had taken over my loan,
• Them calling me demanding to know why I'd cancelled my direct debit saying I was in breach of contract,
• and them requiring information regarding child benefit.

I had a letter from David Cameron (my local MP) after contacting him with my concerns, it said he'd contacted SLC on my behalf. (not sure why he took it up wit SLC and not ESL),
I had a letter from SLC saying to take it up with Erudio ... duh??!! Of course I already had.

Finally I had a letter from Erudio Student Loans amazingly deferring my loan, apologising for their error (saying it was an initial automation error with their direct debit system!) and paying for my bank charges!!! I am amazed, still not impressed with their customer service and really peeved that I had to go through all this!

BUT my message is; keep on fighting, don't bother calling them you get nowhere they are mostly idiots, email their customer services and mark the email 'formal complaint'.

Good luck to the rest of you, I hope your outcome is as good as mine. Although I'm already dreading next years deferment!