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

Update from NZ: I have now received an email acknowledgement that they have received my formal complaint.... Let's see if they reply to that - I won't hold my breath!

In the post I have also received my first Erudio annual statement. It states the APR is currently 0% because some correspondence they have sent to me "may not have been fully compliant with the Consumer Credit Act 1974.....until the correct documentation is issued all fees and interest are suppressed...once the correct documentation has been issued we will recommence applying interest and fees to your account"

Has anyone else received this and what the hell are they on about?!

Thanks for all the info and advice. Decided to phone Erudio last night and after much to-ing and fro-ing discovered that they somehow had an old Vietnam address as the current address and presumably were sending communication there. The guy told me his colleague would email me a deferment form, but that hasn't happened. Does anyone have a copy of a deferment form they could post here or PM me? As my deferment expired in Sept I want to get this sorted as soon as possible. I went ahead and paid the Sept instalment as I didn't want the account to be in arrears. I was told it would be refunded when my deferment was approved. Here's hoping!

On the subject of deferment, I've had a look at the guide to filling in the form on the website and there were a couple of things which caught my eye:

1. Other means of support

(a) Savings: You should complete this if you currently suppor (sic) yourself using savings accumulated in other years. (b) Loans: You should complete this if you arer (sic) supporting yourself using loans taken out in this year or previous (c) Other Borrowings: If you support yourself using other borrowings (such as Credit Card etc.) please indicate here

The SLC never required info about savings did it? Surely a person who occasionally spends some money they have saved from the previous year doesn't have to have that taken into account as part of their income? It's not 'income', as in it's already 'come in' in the previous year. And how can they possibly take credit card debt into account as your 'income'. It's not 'your' money - how can it be 'your' income? Have people on this thread declared credit card debt and savings?

Also, I haven't lived or worked in the UK since 1999 and have no idea what my National Insurance number is. Will that prevent me from getting deferred?

Thanks in advance!

Confusedofoz.

Sorry I don't have a blank copy of the deferment form.

I didn't fill in half of their deferment form (which was phishing for info imho) and still got deferred.

You only have to fill in the savings, credit card and loan bits if you are living off that money. I didn't tell them about my any savings (only the interest earned as income), credit cards, loans etc as it is none of their business.

You don't have to put your NI number either. I also crossed through the last page and a half (after the signature) saying I didn't consent to changes in the original terms and conditions.

Hope that makes sense and helps.

Hi again, just wondering if I can get advice again, sorry.
I have received 2 letters today from Erudio - 1 acknowledges my formal complaint & they are investigating it. Standard letter.

2nd letter is confirming my Direct Debit details & that £116 will be taken from my account on the 25th of each month, starting in a couple of weeks.
Firstly surely they shouldn't be taking money if my account is in dispute is this correct?
Secondly what action can I take?

I feel like closing my bank account completely but is this breaching t & cs? I feel like they have NO RIGHT to take my money when I have proved my low income, yet if I take action to prevent them taking my money am I then in the wrong?

Kiwi. If you are under the threshold and have sent them evidence of this Don't pay them a penny!

I never set up a DD and as soon as the dust settles on all the disputes and complaints are settled it will be shown erudio are a DCA, debt collection agency!

But please do send a complaint to the FCA and tell them, well that you are being blackmailed. I bet you it feels that way to you and probably 100s more!

So if I cancel the DD I'm not in breach of anything?

I'm really confused by this because on another post someone is letting the DD go through, then claiming it back so they are not in breach of anything but also so three is a paper trail of what Erudio are doing?

Kiwi. Erudio could claim you are in breach in theory. For your peace of mind you could do what that other poster is doing.

Confusion reigns with erudio! Read up on DCA tactics and the other erudio threads on the consumer action group website to find out exactly what you are now embroiled in!

So Erudio can claim I am in breach, but yet on the DD letters /forms it says "you can cancel a Direct Debit at any time".
I am lost. ??

OK action has been taken! My DD is now cancelled and I shall be writing a stern letter informing Erudio of this & that they should not be taking any money from whilst (A) my income is below the threshold and (B) my account is in dispute.

I refuse to give these people any of my money! I don't have a lot of it anyway I need it where it belongs!

Yorkshire Kiwi - that's it - don't let them grind you down x

Kiwi, just keep a good paper trail of your actions and erudioS!

Unfortunately they have ground lots of people down with fear and confusion :@

@pluthero yes I'm keeping records of emails & copies of everything. I can see how people are afraid & confused. Horrible tactics.
@ sarebear78 thanks :-)

Can anyone let me have a copy of what the SLC sent out when students applied for a deferment before Erudio took over?

Many thanks

Anthony Reeves
Lawyer

Hi all.
Apologies in advance if my question has already been answered. I've been looking all over the net and have gotten to the point where I can't read any more.

I also have an old style student loan - 97/98/99 - and have always deferred because I earn so little. Last year I became a new mum (yay me!). I've never been a very organised person, and with the little one my disorganisation escalated (baby brain??), to the point that I was barely getting through any of my mail. Everything's on direct debit so I didn't worry too much about it, but, long story short I missed the SLC letter talking about how Erudio were taking over, missed the first two letters from Erudio and missed my deferment date... by quite a few months!
I sent them what they need to defer me a month ago, but they are chasing me for 5 months areas. They said they can waive 3 months but I still seem to owe them close to £800. It wouldn't make any difference if it was £8 or £8000, I don't have it. They haven't confirmed deferment yet, but I know they got my info as I saw that they set up a new DD on my account, (which I cancelled immediately).

I just want to know how I should respond to them. I know I'm definitely under the threshold and entitled to defer. Do I have any right to not pay the arrears. I don't know what will happen if I just tell them I don't have the money. What's the best way to go about this, and am I screwed? I can't afford to give them any money
I appreciate any advice you can offer.

Just to add...
This is what they eventually emailed me regarding deferment/arrears..

"Please be advised that the information that you provided is currently being processed and you will receive a letter in due course.

Also I need to make you aware that you currently have arrears on your account for the sum of £897.13 covering a five month period. Please know that failure to keep your payments up to date may lead to the following;

Calls and letters.
Further administration charges.
The account being terminated which leads to the loss of your right to defer and the cancellation of any age and time related loan closure dates.
The account being passed to an external debt collector.
Outstanding arrears could impact your credit file.

If you are accepted for a deferral, we can roll back up to three months worth of arrears therefore removing them from your account. Any arrears that are there for beyond a three month period will be not be removed and therefore still be payable.

I trust this is satisfactory, however if we can be of any further assistance then please do not hesitate to contact us."

So it's closer to £900 I owe :,(
Even if they do cut off 3 months it's still money I don't have...

@madobea

Looks like you have split loans from pre 98 and post 98 from what you have said. I believe that you should still be being deferred with the SLC as they handle ALL split loans although they will try to deny it. Someone put a post up recently that the SLC HAVE to deal with all split loans.

I am not 100% sure but hopefully another poster in the same boat will confirm this ???

I can confirm that BIS holds information within scope of your request. The responsibilities agreed for processing mortgage style loan deferment applications are as follows:
Erudio Student Loans Ltd is responsible for the processing of deferment applications from borrowers who only have mortgage style loans owned by Erudio.
Deferment applications from ‘shared borrowers’ (borrowers whose mortgage style loan accounts are split between Erudio and either Honours Student Loans or Thesis Servicing) are processed by the Student Loans Company. If an application is successful, deferment will apply to all of a shared borrower’s mortgage style loans, including those now owned by Erudio.

This was from a freedom of information request.

Split loans

www.whatdotheyknow.com/request/227596/response/566053/attach/html/3/FOI%202014%2019700%20R%20Miles%20reply.pdf.html

So my latest correspondence is a letter from Erudio telling me my application for deferment has been received but the evidence is incomplete.
This is (a) the letter I should have been sent back in March and (b) unbelievable because I have already sent them the extra evidence. This company has no idea!

I can't believe the amount of time I'm having to spend sorting this out.

Has anyone been to Watchdog or a similar TV programme? I'm not sure how these things get noticed by these programmes but surely there are so many people affected it would be of interest, or perhaps it has already been on?

I found out today that Erudio are counting direct payments as income.

Therefore severely disabled people will be forced to repay this loan. I'm now in a position whereby I need a carer (that's what the direct payments are for) but if I apply as Ive been advised I will have to pay back this loan if I am 'awarded' that money as it will push me beyond the deferment threshold (because it is to pay someone to care for me every day, plus insurance and other necessary things) The money is in my name but it is only for me to pay for a carer not for anything else. I cannot possibly make repayments from left over money which will be housing and council tax benefits and a small amount for food ands bills as my council take away my DLA and ESA premiums to contribute towards the direct payments. I don't even see how I can manage on what they say they will leave me with.

Like child tax credits its another thing that SLC apparently chose to ignore that Erudio will not.

I'm just making sure people are aware. I've no idea what I'm going to do about this.

That is very unfair and those payments should be exempt under the legislation.

Complain to Erudio and take them to the FOS if they won't defer you properly.

Law says in the regulations that:

“gross income” means income from all sources before deduction for or relief from tax or other statutory charge, but not including any disability related benefits, and less any disability related costs;

So the gross income figure Erudio uses should be less any disability related benefits, and less any disability related costs (hence payments for them).

So if it's a disability related benefit, or payment for a related cost, it makes no difference. Erudio are not allowed to include it in income.

Mandankl the problem is that what they define as disability benefit is not all disability benefits and costs as stated there relates to those specific benefits.

For example I was getting discretionary payments for rent as I must live near a hospital and it must be accessible and large enough for me to move around with sticks and not fall which means the accommodation is expensive - the reason is my disabilities yet that income was not excluded by Erudio.

Which is a disability related cost. So they cannot take any payments WRT that into account.

You just have to be in receipt of other disability related benefits to qualify. The related cost and payments for does not have to be a benefit itself. The related part refers to your disability, not any benefit. i.e. it is for any cost you incur related to your disability.

Erudio are deliberately trying to misinterpret the regulations hoping they can hoodwink you. A court or the FOS would not let them get away with stealing money intended to pay for disability related costs.

Unfortunately the government legally changed what they consider to be disability benefits and disability related costs, and that is what has been adopted by Erudio - erudio have not misinterpreted anything. DHP for example is never considered to be disability related benefit even if it is claimed for that reason for the simple reason it can be claimed for other reasons.

My MP is looking further into it, but I found out he actually voted for redefinition of disability benefits so I'm not going to hold my breath.

No. The government's definition of disability related costs is irrelevant to this matter, as the student loan regulations contain their own definition which is the one that counts here.

That definition has not changed, and remains as any costs incurred as a result of your disability.

If you want to believe Erudio's nonsense that is up to you. Bit it's not true.