Student loan late payment charges

nomoredebts

I was just wondering whether the illegal charges applied to bank accounts re: unauthorised overdrafts, returned DDs etc could be applied to student loan accounts. I went into arrears a few years ago, having been eligable for deferment but unfortunately,because I sent my forms in late, the SLC began charging me the full repayment rate of £113 per month. Then they would send one sometimes 2 letters a month and charge me £15 per time.

Although I am no longer entitled to defer and am paying the loan back, I do resent the charges. I did get them to reverse 2 of the charges (£30) over the phone about a year ago. This was because they want their money on the 24th of each month (non negotiable...I have tried:rolleyes: ) and I only get paid on the 30th of each month. Therefore the SO to them goes out on the 1st of each month. So every month I would get either a phone call and or a letter telling me that my account was in arrears. For each letter I would get charged £15.Over the years this probably adds up to a couple of hundred at least.

Can I use the same principle as reclaiming of bank charges to claim any of this money back? My debt was switched from the Student laons company to Honour Student loans and I have charges with both companies.

Thanks!

nomoredebts

Any advice at all on this would be appreciated.

Thanks

CLAPTON

bank charges for unorthorised overdrafts, bounced DD etc are NOT illegal.

The current situation is that they have not yet been tested in the high court or court of appeal or the house of lords and so although people on this board say they are illegal that is not the case.
So far the banks have chosen not to test the law.

In the case of student debt, i know of no challenges yet (maybe others may know better?), so we don't know how the slc will respond or the courts will respond...maybe you would like to try it throught the small claims court.


If you are the first you may achieve fame as a footnote in a law text book someday.

paws4thought

nomoredebts wrote:

I was just wondering whether the illegal charges applied to bank accounts re: unauthorised overdrafts, returned DDs etc could be applied to student loan accounts. I went into arrears a few years ago, having been eligable for deferment but unfortunately,because I sent my forms in late, the SLC began charging me the full repayment rate of £113 per month. Then they would send one sometimes 2 letters a month and charge me £15 per time.

Although I am no longer entitled to defer and am paying the loan back, I do resent the charges. I did get them to reverse 2 of the charges (£30) over the phone about a year ago. This was because they want their money on the 24th of each month (non negotiable...I have tried:rolleyes: ) and I only get paid on the 30th of each month. Therefore the SO to them goes out on the 1st of each month. So every month I would get either a phone call and or a letter telling me that my account was in arrears. For each letter I would get charged £15.Over the years this probably adds up to a couple of hundred at least.

Can I use the same principle as reclaiming of bank charges to claim any of this money back? My debt was switched from the Student laons company to Honour Student loans and I have charges with both companies.

Thanks!

Have you tried the Consumer Action Group? The view there seems to be that if the charges relate to disproportionate penalties, then they are not legally enforceable. I'm sure there are others in there in the same position who would give you support and advice

lynzpower

COnsumer action group would be the best place to ask.

nomoredebts

Thanks for this. I stand corrected about the 'illegality' of bank charges.:o

I will check the CAG and get back to you all.

digp

CLAPTON wrote:

bank charges for unorthorised overdrafts, bounced DD etc are NOT illegal.

The current situation is that they have not yet been tested in the high court or court of appeal or the house of lords and so although people on this board say they are illegal that is not the case.
So far the banks have chosen not to test the law.

In the case of student debt, i know of no challenges yet (maybe others may know better?), so we don't know how the slc will respond or the courts will respond...maybe you would like to try it throught the small claims court.


If you are the first you may achieve fame as a footnote in a law text book someday.

that is just such utter rubbish. i guess the poster must be banker, only they would post such innane drivel.

CLAPTON

i posted the facts as i believe them to be in law.
there is a general presumption on these boards, that these charges are not supported in law but there have been NO legal tests yet...if you know better then present your legal facts for all to see: they will of course be a matter of the record.

if they are drivel you will of course be able to quote the legal arguments.

for the complete avoidance of doubt, let me say i think the banks/CC companies are utter crooks.
however there is no point in misleading people as the the current state of law. as i said to the OP, in as far as student debt charges are concerned I know of no challenges at yet..if you know otherwise please enlighten us...i will be the first to say i'm wrong.

best wishes

nomoredebts

Aww guys, don't argue!
:sad:
I just wanted some constructive advice, I'm just doing my thing like everyone, trying to get out of debt as quickly as possible. I don't wanna get bogged down in semantics over the term 'illegal'. CLAPTON I know you are technically right in what you say re: illegality but has it added any value/insight to the original query?

Y'all know what I meant when I said that, I wan't trying to answer to an exam question, just get some help, to do whatever I can to get rid of all my debt as fast as I can. If no one has any answers, that's fine but it is pretty disheartening to log on, see that your thread has new posters and then find that the post(s) are of no value to me or anyone else that may be in the same situation. i am sure I'm not the only one who could benefit from this if the same rules apply to SL arrears charges as to CC, OD bank etc charges.

This was my first post as well!

(nearest I could get to dramatic pout, he heh!)

That said, thanks paws4thought and lynzpower for being constructive, and thanks also digp as I know you were trying to help.

Molanole

No more debts, please don't get downhearted after one post! Although this will be of no help in your quest to claim back unfair charges (I'm only just grappling with that one myself) I just wanted to say, keep up the good work and keep us posted as to how you get on. I find that by seeing the progress that everyone is making it spurs me on even more! I do like a challenge.

For what it's worth, I found that after my first post I felt thouroughly "told off" but then, with my debt, it's about time someone told me off I suppose.

Keep hanging in there

CLAPTON

sorry for going off topic on your thread.

what i'm saying is that to the best of my knowledge, no one has yet tried to get the charges refunded for student type loans.

i intended you to read my original reply as encouragement for you to try to recover them.
so i think you should try to do this along the same lines as bank charges.
i.e. write in the first instance asking for a refund .... use the bank charges template letter suitably amended...but if they refuse its down to you whether you wish to go to the small claims court.

best of luck