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

While there is no legal requirement to use or sign their forms, I see why they are sticking with it.

If they admit the truth on that then it pulls down the entire house of cards as someone put it.

The only way they will ever admit it is if they are forced to.

Wow, thread three!

So, today i had a reply from Erudio to my official complaint.

They have sent me copies of my original loan agreements. Unfortunately the photocopies are so bad that I can't actually read what they say.

They say that they are entitled to pass my details onto credit reference agencies for any loans taken out before 1998. They then go on to say that two of my three loans were taken out before 1998. However, this is technically incorrect because I took one loan out in November 1996, then one in April 1998 and one in November 1998. So the second loan was taken in the 1997-98 academic year but I didn't take it until I ran out of money in April 1998. Does this count as pre-98 for the purposes of passing my details to CRAs?

In their response to my complaint they haven't actually addressed the key issue of whether or not I am deferred. So I still don't know where I stand with this.

I think I am going to reply to them and copy in the FOS since they were the ones who managed to get a response out of Erudio for me.

I should also mention that the response to my complaint says that 'borrowers with post-1998 agreements are being offered the option to consent for their up to date accounts to be reported. If consent is withheld, these loans will not be reported to CRAs unless they are in arrears or default'.

So should I take it from this that signing their deferral form is optional? And how are we supposed to defer if we don't agree to that?

me again (I really don't have anything better to do on a Saturday night ).

Although my loan agreements are pretty much ineligible i can see that the one I signed in April 1998 looks the same as the one I signed in November 1998, and these two both look different to the one I took out in 1996. So presumably the April 1998 one falls under the 1998 rules for passing on details to credit reference agencies.

i am off to check my credit files to see if they have passed on details of that loan.

It is my understanding that the loan agreement conditions changed for the beginning of the 1998/99 academic year.

So one that you took out in April 1998 would be under the previous conditions that allegedly permit reporting with extra consent being needed.

And yes, there is no separate section to sign for consent on the forms, and they actually say that by submitting this application form you agree to that reporting.

There is no option to opt out at all.

Very very deceptive.

I meant without consent being needed. oops

you have to include a letter stating you do not consent to your post-1998 loans etc etc...
This was one of the biggest deceits they tried to pull by making everything implicit in the signing of the deferral forms. Its why i thought they should have to redesign their forms and start the process again but with honest forms, not misleading ones. I still think that stands actually despite many being deferred. Im not aware of anyone having their pre-1998 loans reported yet to CRAs, but then again, it is rather crazy to enroll with one, given the info you have to provide to join, which includes credit card/bank account info and much of what we dispute Arrow are after with our deferral forms.

Well I checked my credit file and there is nothing on there about my student loan.

I have looked at the loan agreements and of the three, the April 1998 one is the best photocopy and I can actually read most of it if I squint. It has a section 12 called 'disclosure of information' which says

You agree that we may process the information that we hold about you ...and use it for credit assessment and statistical analysis, including behaviour and credit scoring.

We agree that we will not give or show confidential information about you to anyone else for marketing purposes but you agree that we may give confidential information about you in the following cases...

b. If you have broken this agreement, to licensed credit reference agencies...

Is this the kind that they aren't supposed to pass on?

Yes it is MrsBug.

Interesting to know that they changed the agreements part way through an academic year then. Or at least did in your case by giving you the new version.

I wonder if it was official policy or just a case of them only having the new forms to hand!

I'm on the phone to them right now, as my deferment expires today. They say they can't find my signed for application... why am I not surprised?

23 minutes of faffery to be told they can't tell me anything. I don't have to make a payment today, they will roll back deferment for three months when it's granted and I should hear from the deferment team soon.

@Celtic Promise - What a shambles! - not even being able to tell you they got it - thank goodness people are sending things recorded!

I hope their definition if 'soon' is getting quicker :)

@ CelticPromise My deferment's up tomorrow too, so I emailed their Customer Services address early afternoon, asking for an update on how my application was progressing. Got a reply at 5.20 saying:

"For your information, I can confirm that your Deferment Application has been accepted. If you have not already received a formal notification of acceptance through the post please be assured this shall be with you in due course".

All seemed a bit too easy, but at least I have it in writing that my application's accepted before deferment ends, if they start playing silly buggers.

Good news.

Can you remind us exactly what you gave and what you signed and what you didn't etc? So many people that you get a bit lost reading back.

Would be helpful if everyone reporting a successful deferment made a brief summary of those things, even if they have mentioned the before?

I removed the FPN, deleted the statement at the top of the DD mandate and signed the application. Added "My signature at section 9 above relates only to the certificate and warranty and does not give or imply consent to any changes to the original terms of my loan agreements with the SLC. I do not consent to Erudio passing my deferred loan data and personal details to CRA's". Worked out the amount of financial support from hubby, half of mortgage, Council Tax, etc and provided evidence of that for the previous 3 months. I wrote the customer reference number on every page of the application and evidence.

I emailed Erudio Customer Services the day after they signed for my application (21 May), with a copy of the RM proof of delivery attached, along with a scanned copy of every page of my application and evidence, the idea being that they couldn't claim any of the documents had gone missing/form not signed. I also got a "read" receipt for every email, not sure if Erudio know that one's been sent, but they've always been quick to reply, so I'm guessing they know there's proof that they've opened the email.

Emailed my formal complaint on 27 May, which covered the DD and CRA issues (DD to be cancelled if Erudio/the FOS uphold the complaint), and requested that all collection activity was put on hold until my complaint was resolved. My complaint mentions the FOS/FCA/CSA (I also copied Erudio in to an email I sent the same day to the Commons Select Committee - their inquiry into student loans isn't concluded yet), I got a written acknowedgement of the complaint within a few days, confirming collection activity on hold until they issue their final response. I've no idea if the complaint/Committee emails have any bearing on how quickly they confirmed deferment. I haven't contatced the FOS at all yet.

Wow, that was a serious amount of work.
Half of me congratulates you on your thorugh approach and holding them to account.
The other half is raging that it has come to that level of input time and money(rm registered post).
I'm am glad for you Mini that you have the peace of deferment.
For myself, they can respond to my requests before I volunteer any information regarding my income.

Hi All

Really interesting thread on Erudio.

I took out student loans in the 1990s and have not paid them back because first, I spent many years after my degree gaining a master's degree and a doctorate, and therefore earned nothing, and then after a series of very poorly paid jobs in the British public sector (universities) I moved overseas and became a stay at home Dad. In the past it has been a simple case of deferral every year, on the grounds I do not meet the threshold for repayment.

However, things with Erudio have not started well. First, they didn't send me a deferral letter, only a demand for money. For this reason we couldn't defer in time. Second, when we did send a deferral letter it was ignored and we got another threat. We are sending one more signed deferral notice to them, and if that is ignored I will refer the matter to Zachary Lewy, the owner of the debt collection company Arrow Global, of which which Erudio is a subsidiary. I will also write to my MP, who is the Prime Minister.

The reason I am writing on here, however, is that I have been alarmed by the behaviour of Erudio, which I believe constitutes harassment and intimidation. They are threatening to refer people who defer their loans to credit reference agencies. The sharing of financial data in this way is obviously unethical, but may be legal and within the T&C of the contracts, however, I feel their using this as an instrument of intimidation constitutes harassment. I defer so I feel this is relevant to me, although they have not made this threat to me yet. Also, they are demanding I reinstate a direct debit. The issue I have is that I was forced to cancel the DD after the previous company started taking money illegally by claiming I had not deferred when I had. I cancelled this DD after telephone consultation with the previous company many years ago, and this therefore constitutes a verbal contract. I will not be reinstating any DD and will close down my UK accounts if necessary. I do not live in the UK, by the way.

So in addition to these (threatening reference to CRAs, demanding direct debits when they have no right under the T&Cs to access the accounts) I thought it might be useful if we could start a coherent list of examples of intimidation, harassment, or any other unlawful acts, so we can build a strong case against them. It might be useful in the future.

Thanks all!

Today I phoned the Financial Ombudsman Service. Really disappointing - last time I spoke to them the man I spoke to was really helpful and sent a complaint letter to Erudio for me. This time I spoke to a woman who couldn't have been less helpful if she tried. Just kept repeating that she wasn't allowed to give me any advice and told me that I should fill in their complaint form but 'it will take months before we investigate it' and said I would be better off dealing with Erudio directly.

Feeling really down about it all. This company can do whatever it likes, because none of us have the power or money to challenge them and no one with any power to do anything about it gives a damn.

I don't even have a copy of their form, otherwise I would just fill the stupid thing in to get them off my back now.

I got really excited today when I got a letter from Erudio, hoping it might be a reply to my complaint - unfortunately it was ANOTHER holding letter saying they are still investigating and will reply within 8 weeks. They better hurry up as they received my complaint on 20th April!!

They've basically got until Saturday to get a final response through the post to you then.

23rd April for me, thats a week tomorrow i should have had a reply, still waiting, had a holding letter some while ago, saying they needed to investigate further, given the volume of complaints about the same issue i find this hard to understand.

No response to a request for my credit agreements, although i do have the originals.

They have deferred me though!

Does anyone know how they calculate repayments? I phoned them today as my deferment ends in 10 days and they still haven't told me how much my direct debit will be The figure they told me is about 5 quid more than every loan repayment calculator says it should be! That adds up to £300 over the five year repayment period. Should I complain about this?

Interestingly the woman I spoke to says that although there is a monthly direct debit set up, the amount they will be requesting is showing as £0 and she doesn't know why

They received my complaint on 26 April and I got their reply on Saturday so you should all hear from them soon. My complaint was sent via the financial ombudsman which may have been why they prioritised it.

Just when I thought everything was sorted.. :(

I phoned them yesterday to ask where my deferment letter was, only to be told that my status was 'On hold - incomplete' and when I read back to them the emails that I had received, confirming receipt of all required information, and that my deferment would be processed 'within the day' and stated as such in a recorded telephone conversation, they have still left me in limbo.

Time to make a formal complaint, and request copies of the recordings of phonecalls for FOS fuming