Student Loan - Grumble - Need advice

IanBroadhurst

I need some advice please.

My repayments for my student loan came out on the 10th of each month and just before the 10th Feb payment I asked for a settlement figure. I was told at the time that the figure was for full and final settlement and I should cancel the dd for the 10th - I transferred the monies, I cancelled the dd and a week later I received a letter confirming the the debt had been paid in full.

This month I receive a 'statement' from student loans advising my new monthly repayment is £3.52 as I have £64.55 outstanding.

I phoned them and they advise that the settlement figure took into account the direct debit that was due and I should have kept the dd in place. The letter was sent out before the dd returned unpaid and therefore the debt in bonefide. They have stated that its there error.

To be honest I'm more than a little peeved - I have a letter paying it off, I followed their advice and now 7 months down the line they send me a standard statement saying I still owe them money. They are prepared to waive any interest incurred in that time - but part of me thinks sod them - it will cost them more to persue the bad debt than the bad debt is worth.

I am a bit stubborn and its their lack of customer service thats really hacked me off. As the student loans is not recorded on the credit reference agencies - does it stay that way even if it becomes a bad debt? can't actually afford to pay the money off right now - things are pretty tight so would eek it out until I have the funds to spare. Have asked for a statement to review. I do have the letter saying I paid it off as well - I was pretty sure that a settlement figure would not take into account payments not yet made - I thought it was just the balance plus a couple of months interest.

Grumble, snarl, any advice?
Ian

jonesMUFCforever

It may cost them more to collect than the debt itself but its your credit history that will suffer and all that goes with it.
They have admitted their mistake and waived any additional interest. Ask for time to repay but do not ignore them it is not worth it.

Emmzi

As it is a quango rather than a commercial body their ability to waive payments is very, very limited, and even if it is their mistake, odds on you'll have to pay up.