ERUDIO student loans help

erudioed

Yes, i agree anna2007, great request!
I was wondering, and maybe it is cheeky, but it is possible for you to put another one in for the due diligence report by BIS on this consortium that owns our loans. Just for the public record, we will then know more.
Either way, i will be watching for a reply to your main question.

ElwoodBlues

anna2007 wrote: »

If it's true that the £160m Erudio paid for the portfolio is the value of the loans already being paid back, then the Government effectively gave our deferred loans away, lumped in with defaults, shook hands on the deal and wished Erudio the best of luck in maximising their profit.

Erudio will be looking to recoup the cost in processing deferments, and then some, and won't be relying on defaulted loans alone to do it.

Sold out (or given away) by BIS, the whole deal's rotten to the core.

Here's the sums:

Erudio paid 160m for a loan book of 890m. 46% of those are in deferment, 14% are making payments, and 40% are not (presumably in default then). Making the rough assumption that all the loans are the same value:

160/890 = 18% of the face value, whilst we know 14% are being repaid, so the currently being repaid loans value covers most of Erudio's purchase price. The 4% difference (about 36m) is effectively what they paid for all the deferred and defaulted loans (765m worth, assuming 100% recovery).

If nothing changes with the number of people deferring and defaulting (i.e. Erudio don't get any money from them), then they will be making a loss on the operation. They have to get more people repaying for the deal to make business sense (otherwise they wouldn't have offered as much as 160m). This is what they are speculating on. And one way or another they HAVE to force more people to repay (from their perspective). Now we are all starting to see their tactics unfold, it confirms the leverage they are applying to deferers.

All this assumes they have zero overheads as well (I bet they've gone well over budget on this, as I'm guessing the deferment management process and call centre operation would be much easier than the mess it's turned out to be).

If this was a legit sale they'd have done it the same way as previous sell offs and contracted the SLC to manage the deferment process. But Erudio would never have agreed to that as they thought the SLC was a soft touch on deferers and defaulters. Erudio think they can get more people repaying than SLC were.

Also, I'm convinced Erudio are attempting to sell the personal data they've collected to Experian (Arrow Global are in bed with them). Why else are they asking those irrelevant questions on the deferment form?

The whole thing stinks that's for sure. I'm having a hard enough time trying to get on the property ladder, but if Erudio wreck my currently perfect credit rating, I'll probably never get a mortgage. :mad:

anna2007

Sarebear78 wrote: »

This is great Anna2007 - this was what I was hoping to do but haven't managed it yet, so I'd be very interested to see what the reply is. Thanks so much :T

No problem Sarebear, just hope they can dust off the cobwebs and find some of those leaflets! I was meaning to get around to it before now too, but had to get my FOS/ICO complaints out of the way first.


Ready for the next fight

anna2007

erudioed wrote: »

Yes, i agree anna2007, great request!
I was wondering, and maybe it is cheeky, but it is possible for you to put another one in for the due diligence report by BIS on this consortium that owns our loans. Just for the public record, we will then know more.
Either way, i will be watching for a reply to your main question.

Thanks erudioed - and no, you're not being cheeky I don't mind at all, but I also sent my SLC request to BIS today by email, in case they have stuff that SLC don't. When I was reading through some of the FOI requests last night, one was refused as they had put in multiple requests and reached the cost limit, but then again, if BIS hold the leaflets I'm looking for, how costly can it be for someone to go and look them out?!


I remember the original FOI request on due diligence was refused due to cost and you suggested breaking it down, so if a few of us asked the same questions, we could get all the answers to the original questions? I'll have a look at the original request and submit something, (if there's anything you want me to specifically ask, just let me know).

Edwood_Woodwood

I told Eurdio where to stick it with their deferment form but I provided them with acceptable info that I was below the threshold and I CCA'd them.

My loan is going to be written off in 3 years anyway and they have replied stating that my deferment has been accepted, they are trying to locate my CCA and that they will not be bothering me in the future other than to send the next 3 years statments and then a write off letter in 2017!

Tell them right where to get off.

ElwoodBlues

Well done, that sounds like a good result (for now at least).

Did you start a formal complaint as well? So far I've refused to return the form, instead provided all the evidence with a covering letter, but they have just ignored it and are now sending me letters that I'm in arrears.

erudioed

anna2007 wrote: »

Thanks erudioed - and no, you're not being cheeky I don't mind at all, but I also sent my SLC request to BIS today by email, in case they have stuff that SLC don't. When I was reading through some of the FOI requests last night, one was refused as they had put in multiple requests and reached the cost limit, but then again, if BIS hold the leaflets I'm looking for, how costly can it be for someone to go and look them out?!


I remember the original FOI request on due diligence was refused due to cost and you suggested breaking it down, so if a few of us asked the same questions, we could get all the answers to the original questions? I'll have a look at the original request and submit something, (if there's anything you want me to specifically ask, just let me know).

Great Anna. Yep, the previous due diligence request wasnt just for the due diligience report outlining the reasons why this consortium got the loan. There must be a final report, which i am sure would cost well below the £600 to retrieve...unless they have to hire a guy who can absail from the top of the building to retrieve it, i am pretty certain it fall within the cash limit.BIS said they conducted due diligence on the loan, so lets see what they think about the backers, if they note Arrows tax haven set up, The Wilmington Trusts dodgy set up and sordid cast of characters, and what they made of Mark Howard Filer the registered director of Erudio (and 200 odd other companies simultaneously)...or, if they didnt even care. After all, Cameron had already called for the clamp down on shell companies, so lets see how (if they did) BIS approached it all. We deserve to know the diligence they performed on our behalf.

ElwoodBlues

erudioed wrote: »

...or, if they didnt even care.

That'd be my guess. Bet they never thought there'd be much backlash from it, but it is steadily brewing.

It also appears that Erudio are going after the 'softer' targets first (the deferers). 46% of the loan book is/was in deferment, but a whopping 40% appear to be defaulters.

Another interesting point - these student loans are exempt from bankruptcy, debt relief orders and individual voluntary arrangements. That must make them the Holy Grail of debt!

Edwood_Woodwood

ElwoodBlues wrote: »

That'd be my guess. Bet they never thought there'd be much backlash from it, but it is steadily brewing.

It also appears that Erudio are going after the 'softer' targets first (the deferers). 46% of the loan book is/was in deferment, but a whopping 40% appear to be defaulters.

Another interesting point - these student loans are exempt from bankruptcy, debt relief orders and individual voluntary arrangements. That must make them the Holy Grail of debt!

I didn't complain to them, what's the point? I just told them what for and to stick their forms which are not compliant with my original t&c's.

I also informed them that for 22 years my account has been operated correctly both by myself and the Student Loans Co so how would a court view their sharp practices within just a few months of ownership?

Also remember, it may be true about bankruptcy etc but they still need a CCA to enforce anything, or even to credit report, provided one doesn't fill in their joke forms.

anna2007

erudioed wrote: »

Great Anna. Yep, the previous due diligence request wasnt just for the due diligience report outlining the reasons why this consortium got the loan. There must be a final report, which i am sure would cost well below the £600 to retrieve...unless they have to hire a guy who can absail from the top of the building to retrieve it, i am pretty certain it fall within the cash limit.BIS said they conducted due diligence on the loan, so lets see what they think about the backers, if they note Arrows tax haven set up, The Wilmington Trusts dodgy set up and sordid cast of characters, and what they made of Mark Howard Filer the registered director of Erudio (and 200 odd other companies simultaneously)...or, if they didnt even care. After all, Cameron had already called for the clamp down on shell companies, so lets see how (if they did) BIS approached it all. We deserve to know the diligence they performed on our behalf.

So is it just the final due diligence report I'm asking for, or should I ask for all documents related to the due diligence process?