ERUDIO student loans help

anna2007

gardenia101 wrote: »

I've had an email from them in response to my scanned letter for deferment/evidence so I know they've had it. They asked for some additonal information which I hadn't supplied (my middle names & previous addresses I'd lived at - hadn't thought to supply these as I have an uncommon name, & I'd given them my DOB, loan account numbers etc. already).

gardenia - Erudio have no need to know your middle name or previous addresses to process your deferment, they're phishing for extra information, that's all.

If they say they need to verify your identity when emailing (because ironically they're so committed to protecting your personal information!), your name, address and DOB is more than enough to allow them to do that.

anna2007

JeLaw wrote: »

I'm probably missing something and being completely stupid, but would the defaulted loans really be worth more to them? I suppose it depends how many were allowed to become statute barred by SLC. It would only loans defaulted on within the past 6 years that could be worth anything to Erudio. What proportion of defaulted loans would this be?.

I agree with you that it's only defaults in the last 6 years that are worth much to Erudio (although there will be some borrowers with older defaults who probably aren't aware their debt's statute barred?). Most of the defaulted loans, I'm guessing, would have happened sooner rather than later, and although the dregs will be included in the sale, I'm sure their 'worth' would have been marked down accordingly in agreeing the bargain basement price with their private sector pals.

Another thought on the retrospective arrears letters that went out to 58,000(?) borrowers (I'm 100% certain that this was nothing to do with either SLC or Erudio "potentially" breaching the CCA requirements - it was Erudio who spotted this "potential" breach during the sale negotiations) - it could be a means to manipulate the number of loans included in that quoted 40% who aren't keeping to the terms? I know I'm speculating (again, sorry!), but it's all part of asking the questions that might get us a bit closer to finding out what's really gone on with the sale.

I'm almost FOIA'd out, I've made enough requests to SLC and BIS lately (the cost limit applies to all requests made in a 60 day period). But if you want to understand what's going on here, the legislation's in place to let you do that - just ask! You might not get the answer you were expecting, or you might get no answer at all, or you might just get the answer that brings this whole house of cards tumbling down.

JeLaw wrote: »

Out of interest, how was it decided which loans were sold to Thesis/Honours? Was it just a lottery which of use ended up with Erudio? This might have been covered earlier in the thread so sorry if I've missed this.

From what I've read, they picked the loans at random for the Thesis/Honours sales, which would explain some people having loans with them and some staying with SLC. Although maybe not so random if most deferred loans were excluded from those earlier sales. Anything left over has gone to Erudio in the latest sale.

fermi

Martin nominated boss of Erudio (whoever you think they might be) for the Ice Bucket Challenge.

https://www.youtube.com/watch?v=U_FeRSybhlo

erudioed

that was rather amusing but its a shame it isnt the Tar and Feathers Challenge!

Redkath27

Hi All


Apologies if this has been asked before, but we are having a bit of a carry on here. My Hubby has £9504.80 outstanding with Erudio and they have started taking payments. They have sent letters quoting the amount outstanding but not ever confirmed in writing the term of the loan. We have called them and they advised over the phone it is 5 years, which is fine. They initially told him (verbally) that the amount payable monthly will be £177, but when the next letter arrived they had increased this amount to £183. The problem is, when we have worked out what his payments SHOULD be, via the money advice service website and using their current interest rate confirmed by them at 3.3% until next month (this is on their own website) then the monthly amount works out at £172.
We called them today and basically after a lot of faffing about they said that the reason for the higher amount was that there is extra interest added on to the repayment because my hubby is paying by Direct Debit, he called this "payment method 7". He said this is in the T&C's, when we asked where it was in there he did not know. Hubby asked if there was another payment method he can use to avoid this charge, which let's face it is over £10 monthly, and was told he can only pay by d/d!
We have logged a complaint with them which we are not convinced has actually been done so are also putting it in writing and cc in the FCA for when it goes further (as I have no doubt it will!).
My questions are these:
1. Are they allowed to charge interest on d/d payments at all, or if they are, without advising you first?
2. If this is legal, how can they offer no alternative, as this makes it a mandatory charge?
3. Has anyone else taken the time to sit down and work out what their repayments are and if they are being charged correctly?
Imagine that they are charging interest on everybody's payments and how much extra they are raking in from it?
For info, the "extra" interest was stated at 0.271%, which still doesn't add up in my Hubby's case.
Does anyone at Erudio know what they're doing?

rizla_king

That is more bullsh!t and blatant thieving and lies from Erudio!

There is nothing in the loan T&Cs or law that allows them to charge any extra on DD payments.

Complain to the FOS and report their illegal charging to the FCA and trading standards,

fermi

You might want to email news@moneysavingexpert.com with that one, as that is outrageous.

fermi

Redkath27 wrote: »

Hi All


Apologies if this has been asked before, but we are having a bit of a carry on here. My Hubby has £9504.80 outstanding with Erudio and they have started taking payments. They have sent letters quoting the amount outstanding but not ever confirmed in writing the term of the loan. We have called them and they advised over the phone it is 5 years, which is fine. They initially told him (verbally) that the amount payable monthly will be £177, but when the next letter arrived they had increased this amount to £183. The problem is, when we have worked out what his payments SHOULD be, via the money advice service website and using their current interest rate confirmed by them at 3.3% until next month (this is on their own website) then the monthly amount works out at £172.
We called them today and basically after a lot of faffing about they said that the reason for the higher amount was that there is extra interest added on to the repayment because my hubby is paying by Direct Debit, he called this "payment method 7". He said this is in the T&C's, when we asked where it was in there he did not know. Hubby asked if there was another payment method he can use to avoid this charge, which let's face it is over £10 monthly, and was told he can only pay by d/d!
We have logged a complaint with them which we are not convinced has actually been done so are also putting it in writing and cc in the FCA for when it goes further (as I have no doubt it will!).
My questions are these:
1. Are they allowed to charge interest on d/d payments at all, or if they are, without advising you first?
2. If this is legal, how can they offer no alternative, as this makes it a mandatory charge?
3. Has anyone else taken the time to sit down and work out what their repayments are and if they are being charged correctly?
Imagine that they are charging interest on everybody's payments and how much extra they are raking in from it?
For info, the "extra" interest was stated at 0.271%, which still doesn't add up in my Hubby's case.
Does anyone at Erudio know what they're doing?

Pre 1998 agreements.

In each calculation the amount of
the monthly repayment for the relevant months shall be determined
(subject to rules contained in the present regulations or in applicable
regulations) by adding (i) the amount of the Loan outstanding on the
calculation date plus(ii) interest which will accrue during the period of
repayment then remaining, and dividing the total by the number of
repayments then remaining to be made under this Agreement.

3. Interest

The Loan will bear interest at such rates as from time to time may be prescribed in
applicable regulations being such rates as appear to the Secretary of State (and, in
Northern Ireland, the Department for Education and Employment) to be requisite for
maintaining the value of that amount in real terms. The current rate of interest so
prescribed is set out overleaf and may be varied from time to time as mentioned overleaf.
Interest will be charged on the balance of the Loan from time to time outstanding on a
day to day basis (after as well as before demand or judgement). That interest will form
part of your debt to us and will be shown on your account with us by being debited
monthly. All interest accrued will be added to the Loan each month and will itself bear
interest from that time.

Post 1998 agreements

We will work out your monthly repayment amount for each year by adding to the
principal balance of the loan as at 1 September (or 1 April in the case of the first
repayment amount) the amount of interest which, after taking account of repayments,
will accrue over the remaining period of the loan at the current rate and dividing the
total by the number of repayments then unpaid.

3. Interest

3.1 The interest rate for the period between 1 September and the following 31 August wil
be the daily rate which would result in an APR for a loan on the terms of this loan
equal to the RPI rate. We will tell you the new interest rate in September each year.

3.2 Interest will be calculated daily on the amount of the loan outstanding and will be
added to the loan, and form part of it, monthly until the loan is repaid in full. We
will continue to charge interest on any overdue payments, both before and after
judgment, and during any period when you do not have to make repayments
(including any period of deferment).

The loan regulations

7. The lender will work out the monthly repayment amount for each year by adding to the principal balance as at 1st September (or 1st April in the case of the first repayment amount) the amount of interest which will after taking account of repayments accrue over the remaining period of the loan at the current rate and dividing the total by the number of repayments then unpaid. The first monthly repayment amount will be fixed for five months beginning in April and from then on each monthly repayment amount will be fixed for 12 months beginning in September.

2. Interest will be calculated daily on the amount of the loan outstanding and will be added to the loan monthly and form part of it until the loan is repaid in full. The lender will continue to charge interest on any overdue payments both before and after judgment and during any period when the borrower does not have to make repayments, including any period of deferment.

3. The interest rate for the period between 1st September and the following 31st August will be the daily rate which results in an APR equal to the RPI rate. The lender will tell the borrower what the new rate is each year.

JeLaw

gardenia101 wrote: »

If this was posted earlier I've also missed it.

I've not actually had confirmation that all 3 of my loans have been sold to Erudio yet, I just know that at least 1 has or they wouldn't be contacting me.

It might be worth checking. Perhaps write and request that they send you the letter that notified us of the sale. You should have received this.

I've had an email from them in response to my scanned letter for deferment/evidence so I know they've had it. They asked for some additonal information which I hadn't supplied (my middle names & previous addresses I'd lived at - hadn't thought to supply these as I have an uncommon name, & I'd given them my DOB, loan account numbers etc. already).

So they're continuing the attempts to delay deferment - for no valid reason. I suppose I should expect the same response from them in that case as I didn't supply that information (and don't intend to).
QUOTE]

anna2007 wrote: »

I'm almost FOIA'd out, I've made enough requests to SLC and BIS lately (the cost limit applies to all requests made in a 60 day period). But if you want to understand what's going on here, the legislation's in place to let you do that - just ask! You might not get the answer you were expecting, or you might get no answer at all, or you might just get the answer that brings this whole house of cards tumbling down.

Thanks for all the requests you've already made. I think I will ask. It's worth trying to find out as much as possible.

JeLaw

rizla_king wrote: »

That is more bullsh!t and blatant thieving and lies from Erudio!

There is nothing in the loan T&Cs or law that allows them to charge any extra on DD payments.

Complain to the FOS and report their illegal charging to the FCA and trading standards,

Erudio really are a very bad joke (or nightmare). Seems a particularly pathetic (false) claim on their part considering that it's well-known that making payments NOT by DD often incur a charge, i.e. utility bills, mobile phone bills.