Default on Career Development Loan, advice please

bitterblue

Please could somebody give me some advice. My son is currently at university in the USA. A couple of years ago he took out a Career development loan with Barclays bank to help with his studies, amounting to £8000. When he signed up for it he stated on his application form that he would not be able to start paying the loan back till the summer of 2007 when he would be able to find work. The application was accepted with no problems. There seems to have been a misunderstanding somewhere along the line, and a few months ago he recieved notification that repayments were due. Obviously he has no way of paying these as he is still at university till the summer.

In the meantime he has been in touch with Barclays to tell them about his
situation. The problem is that he keeps being redirected from one dept to another, with no solution in sight. He is still recieving letters to the effect that he is defaulting on the loan and extra interest will be charged. he has been in touch again with the same result. As you can appreciate it is quite difficult for him corresponding from the USA with the bank as he is left in a queueing situation on the phone. The latest letter from barclays recieved this morning has given him till the 15th of this month to pay what is due or pay the full amount of the loan, which is now £8400 after this date

Another problem is that my son has all the paperwork in the USA, while all the correspondence is coming to my address. The bank intends to register details with credit reference agencies and is threatening court action if the money should not be recovered. Would this effect my credit status. My son doesn't live here anymore. What are his options? Would it be worth me getting in touch with the bank? Would they speak to me about the problem? He will not have a problem paying back the loan, as he has been offered jobs when he finishes University, it just seems ridiculous that this cannot be sorted. Is it worth getting a solicitor involved or going to CAB. Any advice about what to do would be very welcome. Thanks!

MillyM_2

Hi

I can't answer all your questions but i would think that if your son quite clearly stated on the application form that he wouldn't finish studies until 2007, and this was accepted, then the bank seems in no position to demand repayment now.

Given the fact that your son's in the US and the problems of phoning, i suggest he writes to Barclays and sends them a copy of the original application/agreement proving that he stated from the start that he wouldn't be finished until 2007.

I don't think Barclays will deal with you as it contravenes the Data Protection Act. However, I don't see why you can't seek advice from the CAB on your son's behalf.

Hope this is of some help & good luck!

bitterblue

Thanks MillyM for your reply. I am going to speak to the local CAB. I am surprised they are only open for a few hours a couple of days a week. Can reach them on the phone, but would rather speak face to face.