Advice on Debt Collectors

FatJock

Hi guy's

I've using MSE for a few months now and gained a lot of tips of you chaps but now need to post a question and wonder if you wouldn't mind offering some advice.

Basically, as a result of a champagne lifestyle funded on lemonade wages I racked up around 20k of debt (CC's, Grad Loan, OD and various other debts). Over the past 20 months I've managed to get this debt down to a 5k (bank loan - very managable and under control) this debt will be cleared by the end of the year.

To achieve this I had to move to a different part of the country for a better paid job. I am about to tackle my student loans (which I've buried my head in the sand about for years). My concern is that my contact address is my girlfriends house. I stay with her at weekends and work in another part of the uk during the week. Since this house is hers and everything in it belongs to her, could a debt collection agency turn up on her doorstep and demand money and/or take her furniture away?

The Student Loan Company do not know of my current address and although I want to pay the debt I am concerned they'll pounce like a pack of wolves once they know where I am.

Sorry if this has waffled on a bit but any advice/assistance would be greatly received.

Cheers,
FatJock

Pigeongirl

Hi!

I have a rather fat Student Loan myself and you only have to make repayments when you earn over £15,000 per year. The Inland Revenue will then automatically deduct a percentage from your pay. I don't think it really matters if the SLC have your up to date address or not as they don't have mine and payments were atill taken automatically.

I am, however, assuming you took your loan out after Sept 1998 as I believe the rules are different to the old'style loans taken before this date. Check their website, perhaps?

FatJock

Pigeongirl wrote:

Hi!

I have a rather fat Student Loan myself and you only have to make repayments when you earn over £15,000 per year. The Inland Revenue will then automatically deduct a percentage from your pay. I don't think it really matters if the SLC have your up to date address or not as they don't have mine and payments were atill taken automatically.

I am, however, assuming you took your loan out after Sept 1998 as I believe the rules are different to the old'style loans taken before this date. Check their website, perhaps?

Pigeongirl - thanks for that. I took the loans out between 95 & 98. I currently owe 3 loans but the are not deducted at source. I'm sure the loan agreements state that if I don't pay a penny back before I reach 55 then they are written off but dont want the loans hanging over my head for that long a period. I am more concerned about my girlfriend's house / furniture being taken in lieu of payment.

Pigeongirl

There is no way they can take anything that is not your property. It's the same if you live in rented property, any creditors could not have a claim on the house. The debt is in your name and so they will only be able to pursue YOU for payment. I'm not saying debt collectors won't knock on your girlfriend's door but they can't take anything that does not belong to you.

Besides, I think as long as you show willing to pay, it is unlikely to come to that.

indesisiv

SLC_website wrote:

If your gross income is below 85% of the national average earnings when your repayments are due to commence, you will be able to defer (delay) your repayments. Gross income is calculated before any deductions and includes some social security benefits. For repayments due in the current academic year (2005/2006), deferment is possible if gross income is £2,011 a month or less.

This is for loans before before September 1998. Not sure about after that date. So if you earn less than £24132 a year you can just defer them.

All of the information is on their website here http://www.slc.co.uk/

Steve

THE_LONE_RANGER_4

hi, debt collecting agencys can not take anything they are not balliffs ,they have little rights apart from asking you to pay your debt on bahalf of the creditor deal with the creditor as i did i found talking to debt agencys tiresome and to be honest pointless pay the creditor what you can afford keep to a repayment programme and you will be fine as for your gf its not anything to do with her so no one should contact her ,if a debt collector knocks on the door( rare ) tell her to tell them you do not live there and as i said you are not under any obligation to pat debt collectors

FatJock

Lone Ranger -

Thanks for the advice. Thats a weight off my shoulders knowing the gf wont be 'targeted' for my debt. I'll contact the SLC and sort out a payment plan.

Thanks Again.

Harassed_2

Student loan agreements are simple contracts and this gives the Student Loans Company (SLC) 6 years from the date you last paid or acknowledged the debt to go to court to enforce the agreement. There are two sorts of student loans and different rules apply depending upon when you took out the loan.

Old style or “mortgage” student loans are consumer credit agreements. Payments cannot be automatically deducted from your wages. The SLC has to go to court before they can enforce the debt against you. This means that the Limitations Act can apply if you have not paid or acknowledged the debt for over 6 years. (Asking for the loan to be deferred could count as acknowledging the debt and start time running again).

From September 1998 new style or “income contingent” student loans include rules to say that repayments are automatically deducted directly from your wages or through your tax return if you are self employed. This means that the SLC are still allowed to take money from your wages for a loan over 6 years old as they do not have to go to court to do so.

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=25_liability_for_debts_and_the_limitation_act

FatJock

Harassed wrote:

Student loan agreements are simple contracts and this gives the Student Loans Company (SLC) 6 years from the date you last paid or acknowledged the debt to go to court to enforce the agreement. There are two sorts of student loans and different rules apply depending upon when you took out the loan.

Old style or “mortgage” student loans are consumer credit agreements. Payments cannot be automatically deducted from your wages. The SLC has to go to court before they can enforce the debt against you. This means that the Limitations Act can apply if you have not paid or acknowledged the debt for over 6 years. (Asking for the loan to be deferred could count as acknowledging the debt and start time running again).

From September 1998 new style or “income contingent” student loans include rules to say that repayments are automatically deducted directly from your wages or through your tax return if you are self employed. This means that the SLC are still allowed to take money from your wages for a loan over 6 years old as they do not have to go to court to do so.

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=25_liability_for_debts_and_the_limitation_act

Harassed,

Many thanks for your advice. I'll contact the national debt helpline and start from there before I contact the SLC. I had my first S/Loan in 1995 so I guess I should start with that one first.

Thanks Again

FatJock