ERUDIO student loans help

Student1983

The limit changed in September. This is where they are trying to catch people out because prior to that the limit was higher. But if they prolong the deferral process which they have been doing you will then be hitting the current threshold. Something else to look out for.

Jonez

Surely if you're self employed, your gross earnings are your profits after business expenses. Erudio seem to be using the turnover figure? Surely the figure used by HMRC to calculate tax is the profit figure and that should be used by Erudio?

chiefdave

Student1983 wrote: »

The limit changed in September. This is where they are trying to catch people out because prior to that the limit was higher. But if they prolong the deferral process which they have been doing you will then be hitting the current threshold. Something else to look out for.

That seems a bit off, essentially if they knew the limit was coming down they could deliberately delay sending everything out and then you're on the new, lower, limit.


It would make more sense if the limit on a certain date was applied to your account for the next 12 months.

Student1983

I contacted Erudio today. Used the international number. Cheaper alternatve and they are making a firtune already from us with the 0845 number. I would be careful with the DD already in place as well as it seems that these are not classed as active until you let Erudio know. Consequently you could go into arrears as they will be unable to take payment if your deferral is not processed in time. So anyone who has a DD in place and thinks there deferral will not go through in time needs to check with erudio if they can take repayments whilst this process is happening. If deferral is accepted you will get your repayment back if the have received your form in time. If not active you will be in arrears. Doesn't make sense especially as the literature says we will automatically take payments if not deferred on time. Also anyone who has an account on hold might want to recheck it is on hold.

ted999

HI
I usually post over on mumsnet, but was pointed in this direction as appears other people are having similar issues here.


For summary: I started paying back my student loan this year as just gone over the threshold. Took out 4 student loans pre 1998.


Received my annual statement from Erudio today and more confused than ever!


All the interest for the first 6 months of the year is nicely laid out on a monthly basis and totals just over £151.
Then they lump all the interest for the next 6 months together from when they took over in March so for March - August and that comes to just over £153.
Which seems fair enough until I read the phrase "...because this was our error, we have decided to only charge you interest from after the date of that letter 29th March..." so in other words no interest has been charged for all of March and the £153 is for only 5 months interest.
During that time I have also made more than £700 in repayments.
Surely the monthly interest should have gone down not up?
Anyone got any comments before I contact Erudio (ie I don't want to make a fool of myself if there is something obvious I am missing)!

JeLaw

AlbertAchillies wrote: »

We'll it appears to me that deferments don't make any difference to whether or not payments are taken anyway. I deferred from July14 to July 15 and received confirmation in the post. I then had as payment taken out of my account of £140. After calling them and complaining, they said it would be refunded and would take up to 14 days. 14 days later and no money. I called again and they said they'd organize a refund (hang on.... I thought that had already been done) and he said it would be in my account within 5 days. 5 days later.... No money SHOCK!!?.... I called and they guy said that our takes up to 14 days not 5. For some strange reason I have also received a deferment for another year too.... To Sept 16. it's so crap that we have no choice but to have to deal with these idiots.... They are so disorganised and unprofessional. I guess leaving me with hardly any money and three children to feed is not important.

This sort of thing is precisely why I didn't provide my DD details to Erudio. We simply can't trust them not to take our money whilst we're in deferment. They did confirm in writing to Anna2007 that having a DD set-up during deferment was NOT a requirement for deferment. Unfortunately from what I understand they are still making this claim on their website so I'm assuming this is one of the issues we need to keep up the fight on!

JeLaw

AReeves wrote: »

Albertchillies, don't know whether you saw my earlier post. (Copy below).If there are others who want to take on Erudio, then please get in touch.



“I have been following the Erudio issues in other forums and someone suggested I should post here. The solution is to take legal action (legal test case) on the issue that there is an unfair relationship under section 140A of Consumer Credit Act 1974 as amended. The court has the power (among other things) to re-write the terms of the loan and that surely is what we want the court to do and this will resolve (one way or another) the Erudio issues. That is something which the Ombudsmen cannot do. I have obtained Counsel's opinion on this which is positive and the barrister (who is very capable) is prepared to take the case on a "no win no fee basis", as am I. So in my view, lets get on with legal action. I have one person instructing me but it would be good to consolidate all claims and bring them together.

Anthony Reeves
Lawyer”

Just wanted to thank you for this offer. I'd be interested. My main concerns are the direct debit issue and the threat of reporting our information to CRAs whilst in deferment. I have now been deferred and didn't provide my DD details, but it's concerning that they continue to claim on their website that having a DD set-up is a requirement for deferment. This is despite their written confirmation (posted by Anna2007) that this is not a requirement for deferment.

anna2007

@ ted999 My statement is the same, they've waived some of the interest, apparently due to the balance on my deferment letter not including interest up to that date. Agree it's all very confusing, and the statement's just plain wrong.

The total interest for those 5 months should have been less than the previous 6 months, because you're making repayments (and most of March's interest has been waived). You can work out what the actual monthly interest should be by multiplying your closing balance at end of Feb by the daily interest rate of (0.0089% x 3 days for March). Add that interest amount, less your monthly repayment amount and that's your opening balance for April. You can do the same for each month April to August, to get the total interest from 29 March to 31 August.

Hope that makes sense and helps - probably as clear as mud!

I'm asking Erudio for an amended statement that shows the right amount of interest, don't see why I should have to accept their dodgy looking discount.

Noticed something else wrong with the statement - only my first loan reference number is shown, with the date it was taken out, but the total shown is for all 3 of my loans. Not sure if they're up to something there, but going to ask for all 3 loan reference numbers to be shown on the revised statement.

Jonez

Noticed something else wrong with the statement - only my first loan reference number is shown, with the date it was taken out, but the total shown is for all 3 of my loans. Not sure if they're up to something there, but going to ask for all 3 loan reference numbers to be shown on the revised statement.

Yep - same here. But the three numbers are quoted on the deferment confirmation letter and the balances tally, so I'm not really concerned.

rizla_king

What is the rate quoted on your statements? Gives on the back a daily rate and annual rate.

The new one is OK from 1st September, but they have calculated the old one wrongly?

Should be 3.3%/365 but the daily rate they used to add interest doesn't work out as 3.3/365.

The new rate of 2.5% is OK as 2.5/365 = 0.006849315 which they have got right.