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

Ok, so I've phoned both the banks, old and new and it seems that I did previously set up a DD on my husbands account with SLC (I still don't remember doing this but I'm sure they wouldn't lie). It was cancelled within a year but the bank, in their wisdom, decided to send all old and deleted DD's over to the new account.

Apparently its all above board then so sorry for the false alarm everyone.

I'm just dismayed that Erudio have already got their claws into our new bank account before its even been christened!

DD now cancelled and no money taken however so no real harm done.....yet!!!!!

Sorry again :(

On an old but familiar issue - has anyone requested and had/not had their original agreement from Erudio.

I sent a cheque and requested mone back in March/April and had a holding letter back from their legal dept - cheque was never cashed - copy of agreement never arrived.

I understand there are no serious legal penalties for not supplying copies but has anyone pursued this issue at all?

Erudio Ref:

Dear Sir/Madam

You have failed to respond to my legal request to supply me with a true copy of the original Consumer Credit Agreement for the above account.

On DATE I made a formal request for a true signed agreement for the alleged account under consumer credit Act 1974 s77/8. This was signed for as delivered on the DATE

You have failed to comply with my request, and as such you entered into default on DATE.

The document that you are obliged to send me is a true copy of the executed agreement. If the executed agreement contained any reference to any other document, you are also obliged to send me a copy of that document. In addition a full statement account should have been sent.

Furthermore, you are aware that the Consumer Credit Act allows 12 working days for a request for a true copy of a credit agreement to be carried out before you/your client enters into default of said request.

This time limit has expired.

As you are no doubt aware sections 77/78 state:

^If the creditor fails to comply with Subsection (1)

(a) He is not entitled, while the default continues, to enforce the agreement.^

Therefore this account has become unenforceable until such time as you comply with my request.

You have 14 days from receiving this letter to contact me with your intentions to resolve this matter.

I look forward to hearing from you in writing.

Yours faithfully

Thanks @ mandakl

I get where you're coming from - although given I've acknowledged the debt for the past 20 years - there's no escaping it.

Ah, I see! Do you mean repayment can't be enforced until the copy is provided?

All it takes away is their option of court action, until they comply with your request. They can still ask for payment and the credit agreement still runs as normal. "enforcement" in this context is just the court. Nothing else.

The letter is just reminding them of that, and that your request is NOT going to go away.

Up to you whether you think it worth reminding of that. You may think it best top just leave it in case push comes to shove at a later point.

Thanks mandakl - even though they didn't cash my cheque, they did acknowledge my request with the holding letter - so perhaps it is something to be kept in the back pocket for later

Interesting FOI response.

www.whatdotheyknow.com/request/232716/response/589812/attach/html/3/Appendix%201.pdf.html

That information doesn't surprise me at all. It should but doesn't.

I had a response on behalf of disabled borrowers.

It clearly says erudio can take all money into account except that legally designated for disability purposes, the only money they say is designated is a list of benefits that can no longer be claimed by disabled people, support group component of ESA and DLA and PIP. They can take my DHP even though it is granted for disability reasons as it is not a disability benefit. They didn't clarify the point on direct payments but as they are not ESA support group or DLA it's extemely likely it will count as income.

My MP office has written to say they will not help me with this issue anymore

Sounds complete tripe. The legal regulations are clear no matter what rubbish they trot out.

There is a lawyer posting on the moneysavingexpert thread who wants to take action against Erudio on a range of issues regarding their breach of the regulations and loan agreements. Could be worth contacting him?

I think it is this one. www.anthonyreeves.co.uk/index.html

Cant remember his name, don't have the letter to hand as I sent it to my solicitor but it's the BIS MP Greg someone or another?! It had a copy enclosed of the excluded benefits from the contract. ESA support group was an amendment after incapacity benefit stopped and PIP was an amendment for when DLA stops too but nothing else.

It also said things like family allowance now tax credits were not to be excluded.

I'll wait for the response from my solicitor before contacting the one you mentioned. I just wanted to make people aware of it.

Thanks for the response!

Hello everyone...

Spent several days reading these posts and more. Thank you for all the information and advice. I am only just joining this fight but oh what a glorious fight it will be!
I am preparing my letter and evidence to go very shortly to our friends at Erudio. After careful consideration I have decided against using their form for the simple reason it states quite clearly 'accordingly therefore by submitting this application you confirm that you consent for Erudio to....'
Hhmmm, I don't think so. Would crossing this out make any difference??? Its the act of using the form that is a major block! As many have stated there is nothing in the agreements to say we use these forms. Can we not collectively refuse to use them?

My loans are 96-99 so I would be very interested in how this all pans out.

Will post updates to share my experiences

Cheers ...BR

Hi, new here. I just got my deferment form and have read the 'fair'processing notice. It says:

"... we may also share your data in accordance with the terms and conditions set out in the original loan agreement. Those are set out on our LETTER TO YOU IN JANUARY 2014".

I'm panicking because I don't know anything about a letter in January. it might have some important info. I only have the 'assignment pack' from the end of march.

Please, if anyone has the letter from January, please PM me/get in touch. I am trying to prepare a challenge to them, so I really need to see the letter.

Thanks.

forums.moneysavingexpert.com/showpost.php?p=66913715&postcount=43

Proves they are lying.

I posted this yesterday on Money Saving Expert forum:

--

I am acting for a client against Erudio and it has been stated in correspondence by Erudio that:

"you will be aware that the DAF is currently under review following customer feedback and consultation with moneysavingexpert.com, BIS and other stakeholders and that the particular provision involving consent to register the loans at CRAs to which you have objected in your earlier e-mail has been deleted from that discussion draft."

The draft I saw on this forum in early November does not agree with the above statement. So has there been a new draft of the DAF provided since then?

Anthony Reeves
Lawyer

reaso, I would be happy to take on your challenge for you.

Send me a message and we can discuss it further.

Anthony Reeves
Lawyer

Not sure

I am

PLEASE ADVISE???

I have Erudio deferment forms to fill out tomorrow (my deferment ends on 22 Dec).

I have 3 student loans from the early 1990's.
I am disabled and currently unable to work and awaiting operations.
I receive DLA but nothing else in income but am married to an ave wage earner.

Currently, Erudio don't have any bank details for me but it says on the form I must fill out a direct debit. I don't want to as if they take my DLA I cant feed my kids.

I am having a bit of an anxiety attack about it (and the evidence needed) and would be very grateful if anyone can advise?

Mindreader.

You do not need to set up DD if you are deferring.

Just give erudio the same info you have given to the SLC In the past.

Your partners earnings as nothing to do with erudio and have zero influence on YOUR RIGHT TO DEFER.

Have a look on the MSE Web site for more advice. Erudios deferment form and practice is being successfully challenged by a lawyer and the FOS at present.

Do not let erudios scary sounding letters and threatening tone frighten you. There is nothing to fear from these chancers.

Pluthero

Am I best to ignore the form and write a covering letter then?

On the form it says: 'do you have a bank account' if so you must fill out the dd section below.

I also don't want to give them my email/phone/housing status?

If I have a 'deferred loan' will it affect my mortgage/rental/credit status, please?

sorry for 20 Qu's just want to get it out of the way this am and you are a 'knowledgable contact', iyswim

Email phone and housing status are definitely not needed. I'm fairly certain that somewhere along the line Erudio have agreed that they don't need to be filled in. They have now drafted a new deferment form due to the number of complaints with the last one.
The deferred loan affecting credit status is an interesting one. Erudio have decided, and I believe that BIS have now agreed it is ok, that loans can be put on credit history as a 'payment holiday' which IMO is technically wrong.

Mindreader. I am no great expert but

If you don't use their DAF they will not defer you unless you get yourself a lawyer or the FOS on your case!

If you want a quick painless deferment use it but only fill in the info you have given the SLC In the past AND DON'T FILL IN THE FPN SECTION! And send a covering letter saying you don't consent to CRA reporting OR ANY NEW IMPLIED CONDITIONS.

HTH

I believe the threat to report loans to CRAs will be absent on the new DAF as it opens up a miss selling scandal argument.

Hi Pluthero

sorry to be dense but what is FPN and CRA?

Ah? Credit Referencing agency?

DAF = Deferred ? Form?

It is interesting that BIS say that they can put the deferments on one's credit file as a "payment holiday". I also believe that is wrong.
This goes back to the argument I have posted about before and I apologise for repeating it. It is that there is in my view (and that of Counsel) an unfair relationship created by having two types of agreements where under the post 98 agreements it says only information will be passed to credit agencies if you are in default (clause 12) whereas under the pre 98 agreement clause 16 is wider and says it may pass information to who it thinks appropriate.

Now in my opinion, there are arguments to say that even under the old pre 98 agreements they can't pass information to credit agencies to note it as a "payment holiday" because under the Data Protection Act 1998, to comply with fair processing they have to come within one of the 6 options in schedule 2 of the Act. The only two options they could come within is that they would say that either they have the consent of the borrower or it is needed for the processing of the application. They don't need to pass the information to CRA's to process the deferment applciation so they are trying to get your consent by asking you to sign the DAF agreeing the FPN. Now I hear some people saying that these agreements were before the 1998 Act so why does the 1998 Act apply? The 1998 Act, as far as I am aware, had transitional provisions to allow time for organisations to get the processing of data in line with the new 1998 Act. Therefore, I think that from 2001, organisations have had to process data in line with the 1998 Act.

So in my opinion [from reading the The Education (Student Loans) Regulations 1998] the deferment application only needs to contain your name and address, your loan reference and evidence to show your gross income is below the threshold for the relevant month and (if they ask) evidence your gross average monthly income during the 3 months immediately following the relevant month will not or is unlikely to be more than the deferment level.

I have been told that the consent to report information to CRA's will be removed from the new DAF but that remains to be seen.

Anthony Reeves
Lawyer