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

I've had a very informative call with Erudio.

Short story: called Erudio on April 17th to find out what was up with my deferment. Guy claims he hasn't had it but will send forms and make sure account is in temporary deferment for three months. Letter on April 19th dated April 10th saying they need more info. Sent off in last month once it was all in. Heard nowt. No payments taken from bank account since March (which I was fine with).

This morning I received a letter saying I was in arrears to the tune of £273.44. That represents the May and June payment. I call Erudio. I'm mystified as my account should have been in temporary deferment at least, the paperwork went off ages ago, and I have a direct debit in place that they already have taken money from in the past. Why didn't they use it?

Here's what I got back.

-They don't have the additional info from me. Grr! I will resend later this afternoon.

-The temporary deferment was right. However, as they haven't got the additional information, my account was dumped into some separate filing system and they now have to get that back on the system. My account is in limbo.

-The direct debit is the fun bit. When the bulk of the erroneous DD's were coming out of people's accounts and Read and Lewis were on Erudio's case, I was informed that a whole mass of direct debits were just wiped off the system so that no more or as few erroneous DD's would be taken in the future. My DD with them was apparently cancelled on June 6th yet my bank account says it is still active.

So let's get this right. They've just sent me a letter saying I am in arrears after they cancelled my DD and never bothered to tell me. The reason the DD was cancelled? Because their system was so bloody useless, they choose to cancel my DD and those of other people instead of risking it taking money from me when it shouldn't have been.

My aching sides still ache. In case the nice lady from Erudio I spoke to is reading this, you were very very good. I have no beef with you. You were very cool indeed, especially when I made a shocked noise at being told my DD had been cancelled by Erudio on June 6th.

It would appear that I am not in arrears. The temporary deferment will stand until they get the additional information in place. My formal complaint will be posted on Monday. If the additional information doesn't satisfy them then I will fall back on the complain, hit the FOS, and go with the legal process as well.

I need some ice cream.

Ibreakwind

I fell off this thread as haven't had anything to add for the last couple of weeks, because I haven't heard back from them. I still don't know if I have been deferred or not, although it is looking unlikely as I don't think anyone on here has been deferred without filling in their ridiculous form?

However, I did fill out the direct debit form and they haven't taken anything from my account either. I also sent the FOS complaint form about two weeks ago & I haven't heard from them either.

I'm also just returning to this thread and still in limbo - in brief: I submitted deferment by letter, didn't use form for all the reasons discussed, have made formal complaint since they won't process my deferment even though they acknowledge I have provided all the information required, and have taken case to FOS.

This week I had a second letter from Erudio confirming that they have suspended activity on my account whilst they investigate my complaint. This time they also confirm receipt of an initial letter re. my case from FOS, and claim they will get back to me by the FOS' deadline - 2 weeks today. We shall see....

MsBug - have you tried calling FOS? I heard they responded faster to phone calls, and so tried that route. They were really on the ball, drafted their letter to Erudio whilst I was on the phone, and sent it promptly. The man I spoke to there was very reassuring, seeming to see them as a right bunch of chancers, which really cheered me up too!

Will let you all know the outcome as and when I hear anything. Although could do without the additional stress this is causing, it seems important to make a stand on this. And its very good to have you all here for moral support - although I haven't posted much, these threads have been so useful and encouraging, thanks

ifandwhen I called the FOS twice. The first time the person I spoke to was v helpful, and they initally complained to Erudio for me. Was told that if I wasn't happy with their response I should call them back.

I got a response from Erudio, which I wasn't happy with, so called the FOS again. That time i spoke to a far less helpful individual who just seemed to want to get me off the phone and said she wouldn't take things any further with Erudio for me, so I decided to fill in their form and try to deal with it that way.

MsBug:

I get the impression they are treading very very carefully with direct debits at the minute. Going by my communications with them today by telephone, it really does reinforce the idea that there is a straight up admin branch in one location and a financial/IT department elsewhere, with the end result that any sort of issue becomes a total clusterfuck.

MsBug - right, I see. That may well be where I end up in a couple of weeks then, if Erudio decide against me... FOS action really shouldn't be luck of the draw should it?

Re. direct debits, I don't have one set up, changed banks a couple of times in the intervening years since took loans out and as I have never earned over the threshold it has never been an issue. An Erudio call centre person noticed that no DD set up, but he said where this was the case they weren't asking people to do so right now, since if they took money by mistake this was just "awkward for everyone"

@ibreakwindinreudiosdirection:
Im not so sure it is important to know who else bid, they will all be the same bunch of cut throats buying and living on debt. What is important that we get the due diligence report publisjed, amongst other things. But we dont have a FOI request for that due diligence report yet in the works...

I have just spent my Saturday afternoon writing a letter, not happy.

So I applied for deferment, sending in previous months payslips and a covering letter stating why I didn't want to complete their forms.

I had a covering letter confirming no repayments would be taken until a final decision was made.

Today I get a letter (dated 3/7) refusing deferment as I hadn't completed the forms and that the DD was taken on in June!

I am beyond . Having read this thread if I'm in dispute no payment should be taken and certainly no further payment should be taken.

I am under the threshold and have provided evidence to defer.

Should I just go to FOS now?

Should I threaten them with the small claims court as they have stated they will not consider my deferment if I don't complete their forms. This wasn't part of my original loan (94 and 95) so are they in breach of agreement in refusing to consider my deferment when I'm entitled to it?

If you are entitled to defer and have provide the proof, then there is no legal requirement to sign their forms.

They are legally obliged to defer you.

Depends whether you want to fight on that point?

Or whether you just want to get deferred as quickly as possible, and then dispute their delaying and underhand methods once that is safely done?

I am below the threshold (work part time) and have provided them with 3 months payslips and a letter confirming the information I have provided is correct.

There's a line in their letter saying if I don't complete their form they will not consider or approve my deferment. I think it's this that has really maddened me. That is not their choice to make, under the Education Regulations it clearly says that you are entitled to defer if you satisfy the loan provider that your income is below the threshold. I have done that so therefore they must surely defer my repayments?

In my above post it should read I had written confirmation that repayments would not be taken until a final decision had been reached. They took out a repayment 8 days before they wrote their final decision letter so that alone is a breach of FCA regulations.

Part of me likes a fight for a just cause...but then part of me just wants it sorted as easily as possible.

Freedom of Information Act 2000 requests: By the way very often those of us who negotiate contracts are able to get copies of documents inclu;ding contracts The confidentiality etc exceptions just allow parts not to be disclosed - see ico.org.uk/for_organisations/guidance_index/~/media/documents/library/Freedom_of_Information/Detailed_specialist_guides/CONFIDENCEANDCONTRACTS.ashx

The MOJ also has guidance including on the commercial interests exemption www.justice.gov.uk/downloads/information-access-rights/foi/foi-s43-exemptions.pdf and has another set on confidentiality.

So do not be fobbed off that contracts are never disclosed on FOIA requests.

@RosiePosiePing Correct. It's not their choice to make, but they seem determined to lie and bully people on that point at the moment.

Hi all.

Not been on for a while, but glad to see people are staying strong and fighting this unfair treatment from Erudio (and the Liberal Democrat run Department of Business, Innovation and Skills who are truly responsible for this fiasco).

I have had a response to a complaint I made. Not sure if others have been advised this, but if you choose not to defer and make payments, then Erudio are saying that they cannot pass any details on to Credit Reference Agencies. They are simply not allowed because you are not signing their NEW TERMS and CONDITIONS! If, however, you choose to defer and are perfectly entitled to do so, then Erudio WILL pass details on to Credit Reference Agencies because they are giving borrowers NO OPTION but to use their deferment forms - even though they have been told that these forms are not fair and have to be re-written. So the choice Erudio are giving us is MAKE PAYMENTS OR HAVE YOUR CREDIT RECORD DETRIMENTALLY AFFECTED. This is duress.

Also, Erudio have now advised that this information about deferment will typically be recorded as being on a 'payment holiday.' This is completely inaccurate as we are not applying for a payment holiday - we are applying for a deferment. The two things are very different things. A payment holiday is a break from a loan when you cannot afford to make payments and WILL affect your credit record - a deferment is a special condition of the unique student loans and reflects that you are not obligated to make payments until earning over a certain threshold. It seems Erudio has now discovered that the only option they have with CRAs is to use the 'payment holiday' option which is completely inaccurate and must be worth a legal challenge.

The simple fact of the matter is CRAs are not set up to report on these deferred student loans as they were never meant to be reported on in the first place. Erudio can't report anything to a CRA until you sign their NEW TERMS AND CONDITIONS on their forms - which have been deemed to be too intrusive and they have promised to re-write. Erudio are trying to use a loophole to put pressure on people to make payments and the failing Lib Dems at BIS are backing them to the hilt.

Information put on a sensitive credit record MUST be accurate and nowhere on any of my paperwork is there any reference to applying for a payment holiday. If my deferred loan is listed as being on a payment holiday I am going to challenge this.

Erudio are chancers - but they are chancers backed by BIS trying to cover up their cock up. Let's not give up. It is what they want us to do.

Keep fighting :)

HI ,
I am currently fighting a deferral rejection from erudio.

I work full time and earn way under the threshold level

However they have taken into account my CTC and WTC and CB . As well as my child maintainance .

I am a single parent and pay my mortgage solely , not that that's any difference from people on here , and im going through a very messy divorce at present .

Anyhow I would like to know why they ar including these means tested benefits which are given to me for a specific reason , so I can work and pay my childcare.

I'm stressed anxious and need general advise as Ive signed the deferment thingy ( technical term) .

Heres me thinking they have suspended my account as I have a complaint , but no on Friday I receive a demand letter. I phone them up getting very stressed as Im deaf and do all communication by email or letter asking why they want three instalments as Id given them details for the dd. The woman (Gemma) states sorry we deleted your details , sorry about that now pay over three months..

Completely stressed to the max xx

i concur LuckyEskimo4, it is pretty obvious looking at the correspondences sent out in the name of Erudio, and their changing FAQs on its website, that CRAs are being used as a threat. Of the complaints answered and the letters posted on the forums, to this notion that payers wont be reported, it is clear it is the only threat they have to turn us from legitimate deferers into unwilling payers. The 1 and a third pages at the end of the deferment form are pretty good evidence of that in our case. The question is why is no one investigating this? The whole CRA issue mainly concerns pre-1998 loans but their deliberate ambiguity at the start about that, and their subtle clarifications that came after about what will/wont be reported CRAs are also strong evidence they are trying to play us (as well as the fact that they havent reported us yet). Someone also needs to investigate the Experian Collection Network that Arrow set up, pay for and are currently trialling. The whole thing stinks and no one has really challenged Zack Lewy when they had a chance on this, just accepting the argument that they are promoting responsible lending...their whole business model relies on irresponsible lending, so why would they press an issue when they wouldnt get into trouble if they didnt push it...after all, SLC chose not to report these loans and no one had a problem with that. It is clear they are saying one thing but using the issue for their own ends! If journalism was still alive and well, someone would have investigated this in much more detail and left the article open ended that their given reasoning doesnt make any sense!

Lucky, that sums it up very well. For those with the newer loans (very much older ones they DO have a right to process your data as that consent was obtained when people set up the loans) I cannot see how they can call it a payment holiday when it is not, particularly when it can spoil the credit rating. It is money which is genuinely not owed as people have a deferment right. It would be wrong for it to appear on credit files.

I sent a complaint email on fri do you think theyll reply

Maybe - they never replied to mine sent in April. Probably too complicated for them :) Never mind the FOS have had it for a few weeks now.....

Hope they do reply to yours, it will probably be hilariously inaccurate, if their previous form is anything to go by......

So today I have had a reply from Erudio to my last letter asking if I have been deferred. They haven't answered my question and have just sent me a new form with a covering letter saying 'in response to your letter of xxx, please find enclosed our deferral form'.

Do I take that as a no?

Can't decide whether to write back asking them this, or just fill the bloody thing in. Have people been deferred if they have filled in the form but not given any of the'extra' info, and crossed out the bit about CRAs?

sending email off tomorrow with my complaint letter they sent me back with my deferral. Ill give them a week to reply then got to FOS.

MsBug I have been deferred after doing exactly that. I am pursuing complaint about the CRA thing though, they have sent me an initial pointless response saying they are 'giving people an opportunity' to consent.

Ms bug - I also filled the form in omitting extra info and crossing out last page and half and got deferred. I also wrote all over it that I did not consent to any changes (I have some loans before and some after the 1998 change).

I decided to get deferred then fight on. My complaint to Erudio (and now with FOS) is, amongst other things, about filling the form in and I want the FOS to force Erudio to confirm that in future I don't need to fill it in.

Pre-'98 Loans

Whilst reading up on something unrelated to Student Loans, but concerning Data Protection law, I happened to find this..

DIRECTIVE 95/46/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

of 24 October 1995

on the protection of individuals with regard to the processing of personal data and on the free movement of such data

link: eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:31995L0046:en:HTML

Could this European Parliament directive, dating from 1995, be used as an alternative legal argument against Erudio to prevent CRA notification of Deferral??

:)

ARRRRRGGGGGGGGG.

Just ARRRRRGGGGGG.

I called Erudio today. I cannot stand it any more.

I am putting a complaint into the FOS.

@erudioed.

No, I agree. I think it is entirely irrelevant to know who else bid for this particular debt sale. I'd like to know why you think a due diligence report is needed when it is clear that the problems have come in how Arrow/Erudio have implemented things after the sale.

@JaneParker

It is one thing to get a copy of a completed contract but getting details of what companies took part in a tender process and what their bids were is a damn sight harder.

ico.org.uk/~/media/documents/library/freedom_of_information/detailed_specialist_guides/awareness_guidance_5_annexe_-_public_sector_contracts.ashx

Take this example:

www.whatdotheyknow.com/request/copy_of_submitted_winning_tender

You end up with a document with all the financials zapped out. This is not uncommon at all and I suspect naff all has changed since I worked in such a capacity in the past.