SLC - repayment - Urgent help request!

Poorbutmiffed!

Apologies for posting a single thread, I couldn't decide the correct thread to post in :oPlease feel free to move it to the correct thread!

Quick facts:

Student Loan taken out 2000 - 2002 (although issues that it was a transferred grant from 1998, but it isn't recognised as such; academic year is listed as finishing 2003?)

At no point in the last 7 years have I earned over £15k (focus in life isn't on wealth ) - in fact, SLC got my contact details for a brief time I claimed benefits last year, when I ceased claiming apparently they got my new address from them.

SLC didn't contact me in years up to 2005 / 6 when I moved; I wasn't even aware that I had to contact them with change of address, however I never received any contact from them; they sent their demands this year (March) which was over 7/8 years since loan was taken out


Looking on this very website, I sent them a standard letter form - the "over 6 years later, cannot take me to court" one.


I received this back today:


Urk - as a new user, I cannot post links?? Was just imageshack scans of documents.


Anyhow - major points "Louise Chapman" from the SLC makes:

1)Loan is Income Contingent Loan, not regulated by Consumer Credit Act.

2)Section 5 of limitation act not applicable.

3)OFT regs refer to debt under CCA, not applicable.

4)HMRC notified address change, not me, I have breached terms & conditions - by failing to comply with terms & conditions "in relation to advising SLC of your changes of address you have deliberately concealed facts"

5) Anyone asked to provide information in relation to repaying loan must complete paperwork, if I "continue to withhold information that we ask for and as a result you fail to make repayments that are due, we have the right to take legal action to recover your debt. This means we can get a court order to make you repay the total loan plus interest and penalties in a single payment. This can be enforced through the courts as a civil debt".



They've obviously sent me a hard-ball type legal letter, but I lack experience to know how to respond. Could anyone here please help me?

Taiko

You pay up, I'm afraid. You have breached your contract, and the 6 year rule does not apply to Student Loans.

They're now enforcing what you signed, and I can safely say they will take you to court if needbe to recover the funds.

neas

Yep i believe the 6 years rule doesn't apply... otherwise every student would try and evade paying back.. and it is afterall the government lending the money to you as opposed to a private institute.. so they have more power.

if you are earning over 15k a year you will start to pay 9% of whatever you earn over this amount.

i got my student loan in 2001 and it was a repayment loan... based on salary... for a 25 year period they will eat away at your earnings above 15k..... suprise suprise as inflation increases... even a minimum wage job working 30 hours a week will start to exceed this limit. Yours will be the same style.

Moral of the story... don't borrow money you can't afford to pay back... and all in all its not like they demand the full cost back.. just 9% of 15k+. I'd start concentrating on using that degree to further your career.... because while money isnt everything.... it certainly helps and is almost mandatory to a reasonable style of life. Otherwise why did you go to university? if not to better yourself?


You have to inform them when you change address and you should want to start paying back what you owe. I always find it hilarious when people try to worm out of their adult contract to borrow money (which is at a low rate!) and then think they can get away without paying it.

neas

Oh an congratulations on the compound interest making your debt approximately 10-15% larger than you first started. Think if you'd done the right thing, you'd have less now . Now they caught you and oops.

robin_banks

No sympathy for your 'plight' at Chateau banks either.

whitfreak

Well everything they said is true. So none of the standard letters are true.

What are they actually demanding? And what years are these academic loans from.

In you have a pre-1998 component then you needed to have defered each year or they will have assumed that you earnt enough to be liable for repayments. If you didnt fill in that form each year you are liable, even if you didnt earn enough.

A post 1998 loans then its just 9% over 15k. If you were working and paying tax by PAYE, any or none should have been sorted by your employer. But you had to tell them. The system in theory catches it, but if you filled in a p46 on starting work and ticked the "I have no student loans to repay" box and that was a lie I hope you get done for fraud.

Eitherway, you were supposed to keep them informed of any change of address or contact details. And that condition was not hiding in the small print.

If they are demanding that you comfirm your current details and your earning for the last few years then I suggest you do it.

If they are demanding cash/fines and alike then I would get into a position to make an offer of a repayment plan. As it looks like your in breach of contact with a department on the hunt for money.

An alternative is to read the T&C's seemingly for the first time and see if there is a clause about yearly statements which it looks like you didnt recieve before you moved.