SLC Reducing my Balance due to not being compliant?

Lungboy

Good morning,
I have a pre-98 student loan, and I've received a letter from the SLC this weekend, informing me that my loan was sold off to Erudio and that it will be transferring to them on the 10th. It then went on to say that they are reducing the balance on my loans by £120.68, due to "an issue with some of the correspondence that has been sent to you in the past." It doesn't specify what correspondence, or what the issue is, just that it might not have been fully compliant with the Consumer Credit Act 1974 in relation to some regulations that came into effect in 2008.

Does anyone have any idea what it might be about? Is the £120 likely to be a requirement by the government, or an attempt to get away with not paying more? I've tried searching for any other info about this but I can't find a word.

liney

http://www.parliament.uk/documents/commons-committees/public-accounts/Uncorrected%20transcript%2011%2012%2013.pdf

Have you trawled through this? I'm not saying the answer is there, but you might find something.

atypical

Information below. If it gets to the stage that a company sends a letter admitting a mistake you can be very sure they will have followed all due process and they're not trying to hoodwink you.

"The SLC has identified that some interest and default charges should not have accrued on your loan account(s). This is because the SLC discovered an issue that meant some correspondence could be interpreted as having not been fully compliant with the Consumer Credit Act 1974, as amended in 2006 and certain regulations made under it which came into effect in 2008. To rectify this situation, the SLC and Erudio have worked together to reduce your outstanding balance appropriately by removing the relevant accrued interest and default charges. Details of these changes are provided in the Notice of Assignment letter sent to you." - http://www.erudiostudentloans.co.uk/faqs/default.htm

"Late on in the sale and migration process, a potential issue was identified with some of the arrears correspondence that had previously been issued by SLC to a proportion of MS loan borrowers. These letters could be interpreted as having not been fully compliant with the Consumer Credit Act (CCA) 1974—as amended in 2008—and associated secondary legislation.

Although borrowers are not thought to have been disadvantaged as a result, the decision has been taken to adjust the balance of the affected loans. Erudio Student Loans Ltd will remove any loan interest and/or charges paid by the affected borrowers from the time that they first received such a letter. Borrowers need take no action and all affected borrowers will be informed as part of migration.

Migration represented the first practical opportunity at which affected borrowers could be notified of their individual circumstances and at which their accounts could be updated." - http://www.publications.parliament.uk/pa/cm201314/cmhansrd/cm140213/wmstext/140213m0001.htm

Lungboy

Thank you both for your help!

cariadon

i had the same letter today mine was reduced by £257 i was wondering if it was from when they charged for sending letters sometimes £30 a time

pbs84

Was this in all the old style agreements or just ones from certain years?

simpywimpy

Ive actually paid some charges in the past even though I was in deferrment. Why can't I get those paid back?