ERUDIO student loans help

edited 30 November -1 at 1:00AM in Credit File & Ratings
6.6K replies 871.9K views
TazFrank1TazFrank1 Forumite
16 Posts
edited 30 November -1 at 1:00AM in Credit File & Ratings
HI,

My student loan has recently been sold to erudio student loans company. I currently defer my loan as I am below the salary threshold to pay it back. The letter states that erudio will supply details of my loan to credit rating agencies, something that has never been done before. There have never been any details of my student loan on my credit file. Will this adversely effect my credit score?? I know I am right to defer as I do not earn enough to start paying it back, however, I am worried that a 10k student loan debt that has not been paid off can only be a bad thing for my credit score

thanks :eek:
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Replies

  • rizla_kingrizla_king Forumite
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    Like the student loan company already do I think they only report the loan if you default.
    Still rolling rolling rolling...... :) <
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  • beduthbeduth Forumite
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    I have loans of about £4000. I know I should pay them but my earnings have never reached the threshold.
    I am now 60 and qualify for them to be written off. I have been in touch with Erudio, and they agree I meet the criteria over the phone, they say the computer shows the loan as written off.
    But my problem is getting conformation in writing.
    I have spoken to them on four occasions and have been told a letter is already in the post. They say they can't confirm it by email but no letter has arrived.
    Should I be worried ?
  • WLITCWLITC Forumite
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    I got a letter from them today and I'm very annoyed as I paid off my loan on 28th Jan this year. Now its probably all fine, but I've checked my bank and there is now a Erudio direct debit on there (which I've deleted) and after receiving the letter I feel the need to ring and just check that they are clear my loan has been cleared. Grhh.
  • ericcthekingericctheking Forumite
    328 Posts
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    Be very careful people.
    It sounds like what Erudio are trying to pull off is this;

    Pre-1998 loans should be put on your credit record if they are in defult (this is in the terms and conditions)

    The deferment forms that Erudio send out state that;
    On page 5 (underneath Certificate and Warranty signature box):

    WARNING:

    In accordance with the terms of your original agreement We have the right to undertake checks to confirm you are eligible for deferment.
    Accordingly therefore, by submitting this application you confirm that you consent for Erudio to perform relevant checks at CRAs and Fraud prevention agencies.
    If your application for deferral is accepted, information that you have a deferred loan will be registered with CRAs.

    Erudio will argue that you have made a new agreement with them.

    People are more likely to pay (when even not entitled to) if they find outstanding loans effecting their credit report.

    This is just one example of their sharp practice along with asking for data they aren't entitled to.
  • ericcthekingericctheking Forumite
    328 Posts
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    sorry about a mistake in the above post.

    Student loans should ONLY be put on your credit record if they are in default.
    Loans in deferment are NOT to be reported.

    Erudio are trying to trick you into letting them put loans that are not in default on your record is what I'm trying to say.
  • edited 21 April 2014 at 9:28PM
    fermifermi Forumite
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    edited 21 April 2014 at 9:28PM
    This is a 99 loan agreement should say?
    12 Disclosure of information

    You agree that we may process the information we hold about you (including contact names given on your application form) on computer or in any other way and use it for credit assessment and statistical analysis, including behaviour and credit scoring.

    We agree that we will not give or show confidential information to anyone else for marketing purposes but you agree that we may give confidential information about you in the following cases:

    (a) for fraud prevention purposes;
    (b) if you have broken this agreement, to licensed credit reference agencies (who may make such information available to other lenders assessing credit application from you and other members of your household);
    (c) under a strict duty of secrecy to sub-contractors or persons acting as our agents;
    (d) to any person to whom we may transfer or assign our rights under this Agreement;
    (e) if we have a right or duty to disclose or are compelled to do so by law.
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  • JKSandyJKSandy Forumite
    711 Posts
    As there is a debt collection agency behind this company I have no doubt they will try and get people to pay as much and as soon as they can.
    All that glitters is not gold.
  • ericcthekingericctheking Forumite
    328 Posts
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    So clause 12 (b) stated that they will only pass on information to credit reference agencies if you break the agreement.
    It is clear as day in the T and Cs.
    Yet on the Erudio's derferment forms they are trying to get your consent to do this to people who haven't broken the agreement.
    THEREFORE I URGE EVERYONE NOT TO FILL IN ERUDIO'S DEFERMENT FORMS.
    It is clearly a trick to get you to sign a different agreement with them.
    YOU ARE HANGING YOURSELF IF YOU FILL IN AND SIGN THESE DEFERMENT FORMS.
  • Erctheking, I hear what you are saying but I don't see the viable alternative. If you don't sign deferment then they will come after you for full payment and your CRfs will be affected anyway.

    Personally I feel sick that my SL has been sold off in this way. I had to go BR in 2007 and as a govt loan it could not be included in my insolvency. If my BR had happened now I wonder if things might be different?

    My CR is fine now and I loathe the idea it could be affected by this company just for deferment of loans should this really be the case.
  • ericcthekingericctheking Forumite
    328 Posts
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    I'm not saying ignore them.
    I am saying send in your evidence as usual with a covering letter.
    Keep to the agreement by sending evidence you are below the threshold but ignore the forms they ask you to sign.
    This is the alternative
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