Honours Student Loans

steveimp

Not sure if this is the right place but I'm sure a Mod will move it.

Some advice please!

Heres my story: I paid off my entire loan (£4,200) yesterday.

HOWEVER, Honours Student Loans have said that despite this, I am contracted to pay, by direct debit, a sum of £87.50 until next September 2007, despite no longer being in debt with them. They say that I am contracted to do this and it does not matter that I have paid the loan in full. If I was to end my direct debit with the organisation, I would be in breach of contract and they would be able to charge me as regards their loss, or send
out the bailiffs.

For info, the loans were the old mortgage style that I took out between 93 and 96.

simongregson

This is rubbish. You can make payments toward the loan at any time and repay them early if you wish.

I was always suspecious when the SLC initially started selling on these loans.

Cancel the direct debit and let them whistle for the cash. They probably just can't be bothered, or are unable to change the direct debit. They won't chase you for it as they probably realise themselves the stupidity of their own arguement.

What do they propose to do with the extra cash that you would be lending them, I assume they would pay it back at the end of the year? Waste of their time!

tom188

Cancel the direct debit and let them whistle for the cash.

Not advisible because they may mark your credit file. Speak to them again and ask for an explanation in writing. If they have got it wrong they will have to return any monies under the terms of the direct debit guarantee.

steveimp

tom188 wrote:

Not advisible because they may mark your credit file. Speak to them again and ask for an explanation in writing. If they have got it wrong they will have to return any monies under the terms of the direct debit guarantee.

The main issue is that the debt is no more - it has been paid. However Honours (nothing honourable about them!) Student Loans say that because the contract stipulates a period of time for direct debits, these debits will have to be made until I am "re-statemented" next year in September time.
That means that this loan that was £4,200 will become nearer £5,000, despite the fact that the only amount in question was the £4,200. How can they get away with this?

steveimp

simongregson wrote:

This is rubbish. You can make payments toward the loan at any time and repay them early if you wish.

I was always suspecious when the SLC initially started selling on these loans.

Cancel the direct debit and let them whistle for the cash. They probably just can't be bothered, or are unable to change the direct debit. They won't chase you for it as they probably realise themselves the stupidity of their own arguement.

What do they propose to do with the extra cash that you would be lending them, I assume they would pay it back at the end of the year? Waste of their time!

As I said above, the loan is paid. The amount contracted that is owed is no more, yet HSL want more money from me because of their "internal procedures".

tom188

Complaints procedure

http://honoursstudentloans.co.uk/topic/complaintsprocedure.aspx

steveimp

tom188 wrote:

Complaints procedure

http://honoursstudentloans.co.uk/topic/complaintsprocedure.aspx

Tried it - I have been called f*****g crazy, told to read the contract when I took out the loan 13 years ago, and basically HSL can do what they like!

impy78

Go to the Financial Ombudsman service, and they will be able to assist you -

http://www.financial-ombudsman.org.uk/
0845 080 1800

complaint.info@financial-ombudsman.org.uk

The Financial Ombudsman Service
South Quay Plaza
183 Marsh Wall
London E14 9SR

I would suggest contacting HSL one last time to advise you are taking this course of action, as they may actually do something.

Molanole

I'm sure this isn't right. I paid off my outstanding amount with Honours a couple of months ago. Nothing was said about remaining direct debits even though I still had about 18months left to run on it. They even issued me with two letters saying that the loan was fully settled and the account closed. This all sounds a bit odd to me but then, HSL are pretty rubbish when it comes to knowing what they are doing.

topher_2

I'm assuming you took your loan with the Student Loans Company and they then sold it to Honours?

I'd cancel my Direct Debit. Your original terms and conditions would have been set up by the student loans company, so once your debt was sold to honours wouldn't the same conditions apply?

With the SLC you can repay whenever you want and then the payments end.

steveimp

topher wrote:

I'm assuming you took your loan with the Student Loans Company and they then sold it to Honours?

I'd cancel my Direct Debit. Your original terms and conditions would have been set up by the student loans company, so once your debt was sold to honours wouldn't the same conditions apply?

With the SLC you can repay whenever you want and then the payments end.

The problem is that if I do cancel my direct debit, HSL will simply mark it on my credit file. It seems that all this is bullying tactics but I have no choice whatsoever to submit to it.