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  • FIRST POST
    TazFrank1
    ERUDIO student loans help
    • #1
    • 16th Mar 14, 10:32 PM
    ERUDIO student loans help 16th Mar 14 at 10:32 PM
    HI,

    My student loan has recently been sold to erudio student loans company. I currently defer my loan as I am below the salary threshold to pay it back. The letter states that erudio will supply details of my loan to credit rating agencies, something that has never been done before. There have never been any details of my student loan on my credit file. Will this adversely effect my credit score?? I know I am right to defer as I do not earn enough to start paying it back, however, I am worried that a 10k student loan debt that has not been paid off can only be a bad thing for my credit score

    thanks
Page 1
    • rizla king
    • By rizla king 16th Mar 14, 11:25 PM
    • 2,836 Posts
    • 1,892 Thanks
    rizla king
    • #2
    • 16th Mar 14, 11:25 PM
    • #2
    • 16th Mar 14, 11:25 PM
    Like the student loan company already do I think they only report the loan if you default.
    • beduth
    • By beduth 17th Mar 14, 8:34 PM
    • 29 Posts
    • 12 Thanks
    beduth
    • #3
    • 17th Mar 14, 8:34 PM
    ERUDIO student loan
    • #3
    • 17th Mar 14, 8:34 PM
    I have loans of about £4000. I know I should pay them but my earnings have never reached the threshold.
    I am now 60 and qualify for them to be written off. I have been in touch with Erudio, and they agree I meet the criteria over the phone, they say the computer shows the loan as written off.
    But my problem is getting conformation in writing.
    I have spoken to them on four occasions and have been told a letter is already in the post. They say they can't confirm it by email but no letter has arrived.
    Should I be worried ?
    • WLITC
    • By WLITC 17th Mar 14, 8:54 PM
    • 942 Posts
    • 333 Thanks
    WLITC
    • #4
    • 17th Mar 14, 8:54 PM
    • #4
    • 17th Mar 14, 8:54 PM
    I got a letter from them today and I'm very annoyed as I paid off my loan on 28th Jan this year. Now its probably all fine, but I've checked my bank and there is now a Erudio direct debit on there (which I've deleted) and after receiving the letter I feel the need to ring and just check that they are clear my loan has been cleared. Grhh.
    • ericctheking
    • By ericctheking 20th Mar 14, 1:00 PM
    • 324 Posts
    • 264 Thanks
    ericctheking
    • #5
    • 20th Mar 14, 1:00 PM
    • #5
    • 20th Mar 14, 1:00 PM
    Be very careful people.
    It sounds like what Erudio are trying to pull off is this;

    Pre-1998 loans should be put on your credit record if they are in defult (this is in the terms and conditions)

    The deferment forms that Erudio send out state that;
    On page 5 (underneath Certificate and Warranty signature box):

    WARNING:

    In accordance with the terms of your original agreement We have the right to undertake checks to confirm you are eligible for deferment.
    Accordingly therefore, by submitting this application you confirm that you consent for Erudio to perform relevant checks at CRAs and Fraud prevention agencies.
    If your application for deferral is accepted, information that you have a deferred loan will be registered with CRAs.

    Erudio will argue that you have made a new agreement with them.

    People are more likely to pay (when even not entitled to) if they find outstanding loans effecting their credit report.

    This is just one example of their sharp practice along with asking for data they aren't entitled to.
    • ericctheking
    • By ericctheking 20th Mar 14, 1:27 PM
    • 324 Posts
    • 264 Thanks
    ericctheking
    • #6
    • 20th Mar 14, 1:27 PM
    • #6
    • 20th Mar 14, 1:27 PM
    sorry about a mistake in the above post.

    Student loans should ONLY be put on your credit record if they are in default.
    Loans in deferment are NOT to be reported.

    Erudio are trying to trick you into letting them put loans that are not in default on your record is what I'm trying to say.
    • fermi
    • By fermi 21st Mar 14, 9:20 AM
    • 39,228 Posts
    • 47,072 Thanks
    fermi
    • #7
    • 21st Mar 14, 9:20 AM
    • #7
    • 21st Mar 14, 9:20 AM
    This is a 99 loan agreement should say?

    12 Disclosure of information

    You agree that we may process the information we hold about you (including contact names given on your application form) on computer or in any other way 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 to anyone else for marketing purposes but you agree that we may give confidential information about you in the following cases:

    (a) for fraud prevention purposes;
    (b) if you have broken this agreement, to licensed credit reference agencies (who may make such information available to other lenders assessing credit application from you and other members of your household);
    (c) under a strict duty of secrecy to sub-contractors or persons acting as our agents;
    (d) to any person to whom we may transfer or assign our rights under this Agreement;
    (e) if we have a right or duty to disclose or are compelled to do so by law.
    Last edited by fermi; 21-04-2014 at 9:28 PM.
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    • JKSandy
    • By JKSandy 21st Mar 14, 9:56 AM
    • 700 Posts
    • 368 Thanks
    JKSandy
    • #8
    • 21st Mar 14, 9:56 AM
    • #8
    • 21st Mar 14, 9:56 AM
    As there is a debt collection agency behind this company I have no doubt they will try and get people to pay as much and as soon as they can.
    • ericctheking
    • By ericctheking 21st Mar 14, 10:34 AM
    • 324 Posts
    • 264 Thanks
    ericctheking
    • #9
    • 21st Mar 14, 10:34 AM
    • #9
    • 21st Mar 14, 10:34 AM
    So clause 12 (b) stated that they will only pass on information to credit reference agencies if you break the agreement.
    It is clear as day in the T and Cs.
    Yet on the Erudio's derferment forms they are trying to get your consent to do this to people who haven't broken the agreement.
    THEREFORE I URGE EVERYONE NOT TO FILL IN ERUDIO'S DEFERMENT FORMS.
    It is clearly a trick to get you to sign a different agreement with them.
    YOU ARE HANGING YOURSELF IF YOU FILL IN AND SIGN THESE DEFERMENT FORMS.
  • Ryansson
    Erctheking, I hear what you are saying but I don't see the viable alternative. If you don't sign deferment then they will come after you for full payment and your CRfs will be affected anyway.

    Personally I feel sick that my SL has been sold off in this way. I had to go BR in 2007 and as a govt loan it could not be included in my insolvency. If my BR had happened now I wonder if things might be different?

    My CR is fine now and I loathe the idea it could be affected by this company just for deferment of loans should this really be the case.
    • ericctheking
    • By ericctheking 21st Mar 14, 11:23 AM
    • 324 Posts
    • 264 Thanks
    ericctheking
    I'm not saying ignore them.
    I am saying send in your evidence as usual with a covering letter.
    Keep to the agreement by sending evidence you are below the threshold but ignore the forms they ask you to sign.
    This is the alternative
    • want_to_save
    • By want_to_save 21st Mar 14, 1:00 PM
    • 319 Posts
    • 540 Thanks
    want_to_save
    unfortunatey when I called them to ask why I was sending sooo much information they said I had to. So this year that's what I have done I can ill afford them to find a way to make me pay.
  • pbs84
    You don't have to.

    All you have to send is proof of gross income.

    Alll the rest is a con job to get extra info out of you they are not entitled to.
  • Ryansson
    Ok Eric see what you're getting at though they have no obligation to accept the letter and evidence as I see it and will demand you complete their forms to qualify for deferment. This being the case what would be the next step in your opinion?
  • pbs84
    There is no requirement to complete their forms to qualify for deferment.

    You are entitled to defer if you can prove gross income is below the thresahold. Their is nothing in law or in the agreement that says it must be done via those forms .

    You can just write a letter if you want requesting deferement with the proof of gross income.
    Last edited by pbs84; 21-03-2014 at 1:50 PM.
  • pbs84
    http://forums.moneysavingexpert.com/showthread.php?t=4920188&page=2
  • Ryansson
    Well my current deferment period is until 25th May. So I might just try what you say and see what their response is.
  • pbs84
    That is the thing. They are trying to panic people into returning the forms and giving all that uncessary info and permission to mark your credit files.

    They desperatley don't want people to stop and think, "no they aren't actually entitled to that info", and "no you don't actually have to use their forms to make a valid legal deferment".
    • ericctheking
    • By ericctheking 21st Mar 14, 2:13 PM
    • 324 Posts
    • 264 Thanks
    ericctheking
    Ok Eric see what you're getting at though they have no obligation to accept the letter and evidence as I see it and will demand you complete their forms to qualify for deferment. This being the case what would be the next step in your opinion?
    Originally posted by Ryansson
    Yes, they will probably demand you complete their forms and probably deny you deferment, then they will say you have arrears on your account so please call this premium rate phone number immediately to arrange payment etc. threats of court more threats etc and they might even take you to court which you will have to defend because if you don't they will get a judgement against you automatically. This is only my opinion but I think if it went to court you would win (they might not even turn up) and would be entitled to defer.
    Anyway it is up to you but you have too options really;
    1. Just doing as they say and probably ending up paying money you were never entitled to pay, and the full amount.(possibly more even)
    2. Standing up for yourself and your rights but there might be lots of stress and this is Erudios game plan a lot of people will be like oh I'll just pay the money to avoid the hassle and stress.

    At the end of the day it's a bit of a poker game with bluffs etc
    We may do this.............. we may do that..................

    One thing I would say with Erudio not being the original creditor and buying this at a discount they might just ignore or make token efforts for the hard to get debt and sell that on for an even bigger discount, for example people who have moved overseas and disappeared/ maybe even people who are legal ed up and knowledgeable and will fight them hard and can get them on technicalities.
    On the flip side they may well just pressure easy targets and get them to sign agreements with them etc. that change the whole game.
    Remember how these loans where sold to you as being different to regular loans so you shouldn't worry (they won't be recorded on your credit file, if you don't earn over the threshold you won't have to pay them back, written off at 50 etc.) and then they get sold off to some clever people who change things with clever wording.

    A final word on morality here.... to them this is just business, if someone pays more than they should, if someone pays when they weren't entitled too, if they take these loans and destroy the whole spirit they were issued in it matters not one bit to them, What matters is there return on investment.
    • ericctheking
    • By ericctheking 21st Mar 14, 2:17 PM
    • 324 Posts
    • 264 Thanks
    ericctheking
    Well my current deferment period is until 25th May. So I might just try what you say and see what their response is.
    Originally posted by Ryansson
    Good on you Ryansson.
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