ERUDIO student loans help

MrStarship

This is interesting for all to be aware of.

AN FOI request, one of many, has just been answered. BIS and SLC are in contact with regards to the potential sell off of the student loans (ICR) But they do stress it wont happen during this parliament. So, essentially, will be sold off most likely during next government.

chiefdave

So here's my situation. I'm registered as self employed and my last tax return shows a pre-tax income of £25,804 which by my maths equates to £2,150.33 just below the deferment threshold of £2,227.25.

I filled in my form accordingly (remembering not accept the new terms etc) and submitted it with a copy of my self assessment tax calculation.

The letter I received from Erudio states:
your recent request to defer repayments in respect of the above loan(s) has not been granted.
Deferment can only be granted when the borrowers gross income does no exceed £2227.25 per month.
From the evidence you supplied your gross monthly income exceed this figure.

That's all the information I have to go on as they haven't stated exactly how they have come to this conclusion, I have asked them but so far no response and I don't feel like running up a huge phone bill calling them.

The only thing I can think of is they are taking all income as the gross income before allowable expenses. That isn't what they should be doing is it? Certainly isn't what was happening before.

With self assessment you have your total income and then take off allowable expenses. That total is the figure you are taxed on and therefore the equivalent to a salaried employees gross. Shouldn't that be the figure they are using? It's the one I've always used and it's never been an issue before.


Should I be making a complaint? If so should it be aimed at Erudio themselves or to the Financial Ombudsman and / or FCA?

erudioed

MrStarship wrote: »

This is interesting for all to be aware of.

AN FOI request, one of many, has just been answered. BIS and SLC are in contact with regards to the potential sell off of the student loans (ICR) But they do stress it wont happen during this parliament. So, essentially, will be sold off most likely during next government.

Do you have a link for that please?

MrStarship

erudioed wrote: »

Do you have a link for that please?

I'm not allowed to post links as I am new user. But it's over at whatdotheyknow dated 21st Sept, and answered 29th sept. See Twitter

trip2themoon

chiefdave wrote: »

So here's my situation. I'm registered as self employed and my last tax return shows a pre-tax income of £25,804 which by my maths equates to £2,150.33 just below the deferment threshold of £2,227.25.

I filled in my form accordingly (remembering not accept the new terms etc) and submitted it with a copy of my self assessment tax calculation.

The letter I received from Erudio states:
your recent request to defer repayments in respect of the above loan(s) has not been granted.
Deferment can only be granted when the borrowers gross income does no exceed £2227.25 per month.
From the evidence you supplied your gross monthly income exceed this figure.

That's all the information I have to go on as they haven't stated exactly how they have come to this conclusion, I have asked them but so far no response and I don't feel like running up a huge phone bill calling them.

The only thing I can think of is they are taking all income as the gross income before allowable expenses. That isn't what they should be doing is it? Certainly isn't what was happening before.

With self assessment you have your total income and then take off allowable expenses. That total is the figure you are taxed on and therefore the equivalent to a salaried employees gross. Shouldn't that be the figure they are using? It's the one I've always used and it's never been an issue before.


Should I be making a complaint? If so should it be aimed at Erudio themselves or to the Financial Ombudsman and / or FCA?

I've also received a rejection of my deferment stating i earn over the £2227.25 threshold. However in my deferment application letter it states the threshold is £2398. Which is above what i earn. The guy I spoke to at Erudio was a waste of time and kept saying the threshold has always been £2227.25.

Really worried about this, does anyone know what i can do?

chiefdave

trip2themoon wrote: »

I've also received a rejection of my deferment stating i earn over the £2227.25 threshold. However in my deferment application letter it states the threshold is £2398. Which is above what i earn. The guy I spoke to at Erudio was a waste of time and kept saying the threshold has always been £2227.25.

Hadn't even noticed they'd moved the goalposts as I'm under the new limit as well. Surely the limit only changes annually?


I wonder at what point does it move from Erudio being totally incompetent into them trying to obtain money fraudulently?

fermi

Yes, it changes each year.

See the recent article --> http://www.moneysavingexpert.com/news/loans/2014/08/student-loan-deferment-threshold-to-fall-qa-on-why-its-happening

Erudio staff are either stupid and incompetent or out and out liers. Make up you own mind which.

fermi

erudioed wrote: »

Do you have a link for that please?

https://www.whatdotheyknow.com/request/230824/response/566475/attach/html/3/STUDENT%20LOAN%20SALE%20ENQUIRIES.pdf.html

anna2007

chiefdave wrote: »

With self assessment you have your total income and then take off allowable expenses. That total is the figure you are taxed on and therefore the equivalent to a salaried employees gross. Shouldn't that be the figure they are using? It's the one I've always used and it's never been an issue before.


Should I be making a complaint? If so should it be aimed at Erudio themselves or to the Financial Ombudsman and / or FCA?

You're right, the gross annual income from self-employment is the amount of earnings after allowable expenses are deducted.

Unfortunately, this is typical Erudio behaviour, there were reports on here of them doing the same with property rental income.

You have to raise a formal complaint with Erudio first and give them up to 8 weeks to reply (collection activity on your account should be on hold during this time), then you can take it to FOS. You can complain to FCA now, they won't do anything about your individual case, but will add your complaint to what must now be a very long list of other Erudio complaints, which FCA supposedly monitor before deciding what action to take.

anna2007

trip2themoon wrote: »

I've also received a rejection of my deferment stating i earn over the £2227.25 threshold. However in my deferment application letter it states the threshold is £2398. Which is above what i earn. The guy I spoke to at Erudio was a waste of time and kept saying the threshold has always been £2227.25.

Really worried about this, does anyone know what i can do?

The threshold rate depends on when Erudio received your deferment application - forms received on or before 31 August should be processed at last year's higher threshold. From 1 September, it's the lower threshold of £2,227.