ERUDIO student loans help

erudioed

It does kind of echo those tricks/lies debt collectors are accused of using.
But we do need the whole story and serious confirmation if it is true.

anna2007

Another interesting FOI request to BIS, on their involvement in developing Erudio's DAF, and for correspondence re Erudio with HM Treasury/No. 10, and also correspondence with Erudio on the deferment process/DD errors:


https://www.whatdotheyknow.com/request/erudio_student_loans_5#incoming-557782

anna2007

And another FOI request (they're adding up!) to SLC on refused deferment applications over the last 5 years SLC had the loans:

https://www.whatdotheyknow.com/request/loan_deferal

Mr_McGuffin

https://www.whatdotheyknow.com/request/224180/response/557494/attach/4/FOI%202014%2017916%20Mr%20K%20MacDonald%20for%20clearance%20v2.pdf

Does anyone know if whoever made this FOI request is on here? If so I'd like to send them a message

GinOClock

Good morning, everyone. I have been following this thread for some months, but haven't got round to signing up.

I was the person who submitted the CRA FOI request, so Mr McGuffin has finally smoked me out (please do message me if you like).

I have to to say I am somewhat disappointed with the response and am considering asking for an internal review.

It is also simply quite disgraceful for BIS to simply wash their hands of the matter and say it is up to the individual holders of MS loan portfolios to decide what to report (albeit within the T&Cs).

In the meantime, I have a day off on Monday, so I might ring round Honours/Thesis and see if they can advise on their own CRA reporting procedures in general terms. I have an inkling that only Erudio plans to report deferred loans to CRAs. When I spoke to Erudio (admittedly on the telephone) about it in early August, they said the final decision on CRA reporting had yet to be made. The advisor claimed the FCA were pressuring them into the reporting and Erudio felt they were stuck in the middle.

I'm not quite sure if I believe that story...

erudioed

@GinOClock have one on me, that is some stellar work!!! And thanks for getting stuck in with the comments, i look forward to reading any of your thoughts on our most hated subject!
It would be something it if it isnt up to Arrow Global what happens with the CRA reporting, if indeed it is again a government body coming down on us in some kind of vengeful act for forcing them to sell our loans because we didnt earn more than the threshold and kept our part of the agreement by deferring and keeping in contact all these years.

rizla_king

Another interesting one.

https://www.whatdotheyknow.com/request/responsibilities_agreed_for_proc

gardenia101

vicky_r wrote: »

Hi,
Totally new to this thread, but I have quickly scanned what has been written about Erudio and haven't come across what I am currently experiencing.

Received a letter from SLC/Erudio in March 2014 to say that my student loan has been sold/bought by them, then nothing.

Due to defer during the summer months, but uncertain as to when. SLC was always on the ball with sending out deferment forms & letting you know when you hadn't responded/not sent the correct info etc etc.

I was aware that I had not received deferment forms, but currently have health issues, so not my main concern atm.

Yesterday I received a letter from Erudio which was my statement of account, but with it there was information stating that I was in arrears, and what to do when you get into debt.

A little confused, jumped straight on the telephone asking what the letter meant, and where was my deferment forms, to which the whippersnapper could only say, 'well the forms were sent to you on 24th May 2014, and you should have received them'

I asked to speak to a supervisor, which he duly did, who was able to help a little more, but the internet & forums like this has been the biggest help!

My questions/concerns are:-

Erudio, in purchasing all the details from SLC appears to have lost my bank details (still with the same bank I was when I was a student), do I have to change my bank as my personal security has been compromised?

Why have Erudio not informed me that payments were due to start in mid July, which would have prompted me to sort out a deferment.

Why have Erudio not informed me when they were unable to honour my DD in July, and again in August, and waited until my account was 2 months in arrears? - In the past I have issues with mortgage/utility companies etc, and as soon as I didn't make a payment for whatever reason, they are sending me a letter to tell me a payment hasn't been made.
I did ask Erudio for their policy on notifying people on missed/late payments, but after reading the majority of the 87 pages on this thread, I don't hold out much hope that they do have a policy.

I am now not going to wait for the defer forms, and use the template on this thread (thanks guys), and keep everything crossed I can get a deferment, which will be back dated 3 months.

Like you Vicky, I haven't received any paperwork from Erudio about my account - no deferment pack, no statement, no notice of arrears. You're one up on me as I didn't receive anything from the SLC about the sale of my loans to Erudio either - in fact I'm still not sure if Erudio bought all 3 years of my loans, as they haven't replied to my letter of deferment, & the now SLC repayment dept only deal with ICR loans (not MS).

My cynical head says they haven't sent you any paperwork because they're hoping you'll not notice & fall into arrears/default - if their system says "we sent you correspondence on X date" then I don't know how you can prove that you didn't receive it . I'm having a battle with my utility supplier who insists they've sent out 4 separate letters - I can't prove I haven't had any of them, but I know I haven't.

Regarding you bank details - the only info that they could have lost are you a/c no, sort code & a/c name. When a cheque went missing I queried what I should do with my bank & they said all anyone could do with that info was pay money in or set up a new d/d if no-one at the bank double checked your signature copy that is on file (& my bank said they always check signatures, but then they would say that, wouldn't they ). I tend to check my d/d list each week anyway so I'd notice if a new one was listed, but maybe you could check your d/d list just in case.

Erudio have my bank details from the SLC, but seem unable to collect d/ds from it for reasons known only to them.

I know I'm a month in arrears now as I haven't made a c/c payment for August, so I'm going to have to ring them soon. Still not processed my deferment.

Thanks to everyone doing the research - I don't like the FOI's that seem to suggest (to me) that BIS are claiming its now't to do with them.

Mr_McGuffin

This is from the NAO Report 'Student Loan Repayments', 28 November 2013 (Copyright 2013 National Audit Office):

'BIS and the SLC are also working with the Cabinet Office on its cross-government unresolved debt project. This project, which is in early stages, aims to support departments in tackling unresolved debt and reduce the debt owed to government.' p.32

So that is this?:

https://www.gov.uk/government/groups/fraud-error-and-debt-taskforce

'The Fraud, Error and Debt Taskforce is the strategic decision-making body for all fraud and error, debt and grant efficiency initiatives across government.'

Part of:

https://www.gov.uk/government/organisations/cabinet-office

which includes:

http://www.behaviouralinsights.co.uk/about-us

working together on these sort of projects:

https://www.gov.uk/government/publications/fraud-error-and-debt-behavioural-insights-team-paper

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/61023/eliminating-public-sector-fraud-final.pdf

This paper explains:

'The Taskforce on Fraud, Error and Debt was established in late 2010 to create a high‐level, cross‐Whitehall group to address the enormous level of unacceptable losses. The focus of its first report is combating fraud. The Taskforce brought together fraud professionals from both the private and public sector. It oversaw eight pilots that tested new approaches to tackling fraud, including the more efficient use of credit reference agency information, the deployment of data analytics, and the use of insights from behavioural science to improve how fraud is combated.' p.3

Annex 2 summarises these fraud pilots, which involved partnerships with CRAs and 'data matching companies'.

The Fraud, Error and Debt Taskforce was set up to address 'unacceptable losses' not only through fraud and error, but through debt also. The NAO Report seems to say it was working with BIS and the SLC.

Our loans were originally a major element of public education policy. By 2010, were they seen by the Cabinet Office as forming part of these 'unacceptable losses'?

Fraud, error and debt are reasons why money may be owed, but they are different reasons.

Default and deferment are different, but they were described by BIS for the purposes of the sale to Erudio as forming together a 'vast majority' of the loans sold. (BIS Press Release, 'Sale of mortgage style student loan book completed', 25 November 2013)

It seems this Government initiative conflates fraud, error and debt. It is experimenting and devising techniques to optimise recovery, including partnerships with the private sector.

The sale agreeement with Erudio has allowed practices previously reserved for fraud and default by student loan borrowers to be applied to those behaving within the terms of the agreement. This is different to the deferment, collection and recovery procedures specified in the 1998 and 1999 sale agreements.

When our student loans were designed, the costs of deferment and default were not counted together:

The Parliamentary Under-Secretary of State for Education and Science (Robert Jackson): 'The second point which I hope that hon. Members will bear in mind when they assess the cost of the scheme is the distinction between default and deferral. The Government's scheme provides generous arrangements for deferral, but we will be tough on default.' (Hansard, HC Deb 20 October 1989)

This is from the DES notes for MPs in 1990 that explained how the SLC would administer the loans:

‘I – DEFERMENT…
7. sanctions:
a) for misrepresentation by borrower:
i. rejection of deferment application
ii. accelerated repayment of outstanding debt
iii. information to credit-reference agencies
iv. proceedings for fraud’
'Top-up loans: rules & procedures' (Copyright 1990 Department of Education and Science, Commons Library, Dep 5749)

This is how it looked in 1990:

Mr Jackson: 'The scheme that we are proposing is responsive to the graduate's income. There will be no obligation to repay the loan if income falls below 85 per cent of the national average… The Government are proposing a simple test which will rely on the honesty of graduates, and we expect it to he fulfilled. There will be a process of self-declaration, subject to sample checking. It is simple to ascertain graduates' income and how it relates to the threshold, which will be promulgated and announced. People will have to assess for themselves whether their income is above or below the threshold, and the whole process will be subject to sample survey… We envisage that deferment will have to be applied for and justified annually to the Student Loans Company, and the company will do that.' (Hansard, HC Deb 15 February 1990)



Contains Parliamentary information licensed under the Open Parliament Licence v.1.0
Contains public sector information licensed under the Open Government Licence v2.0.

ericctheking

Just to let everyone now Erudio did split someones loans.
They botched up all the paperwork asking for more info etc, and took DDs when the loans where already deferred.
The person involved hasn't lost out financially as the DDs were refunded eventually! Well I guess they lost out on the time value of money. Erudio should have paid interest on the time they had the money!
Anyway they where told by Erudio that the lender decides the deferment date so it's now different times of the year for different loans. Erudio say this is in the terms and conditions and the terms and conditions haven't changed according to them.