ERUDIO student loans help

erudioed

yep, seems like the BBC reporting has lead to the blitz.
So, why was i and others, including the BBC earlier today but not so much later on, told that if we said no to loan info being passed on then Erudio would not pass on such info. My letter still hasnt arrived but i am suspecting it will only refer to post-1998 loans.
It still isnt treating borrowers fairly though because that should consider our concerns and their aims, and if it doesnt hurt anything, maybe side with the borrower and treat them fairly if they object to their financial info being open for paying customers to view, especially when we have done nothing but live up to our T&Cs in the past.
I dread to think what is to come if they have decided to take the hard line and stick to it. Where will "treating us fairly" come into it...if they applied that like they seem to have interpreted the above, we would have few concerns, as it is...

Jill18

Well of course Erudio are going to "judge it appropriate" to report to CRAs as more people who are entitled to defer will pay up just get it off their credit files. This makes my blood boil. The government have really sold us out. we can all wave goodbye to our credit ratings.

fermi

I note that it says that:

Erudio considers.

Not that the ICO considers.

ICO is the arbiter of what is acceptable under the DPA on credit files. So are ultimately the courts. Erudio may have consulted them, but doesn't say what the ICO opinion actually is/was or might be.

griffythings

Why did the government sell our loans for 5 pence in the pound? My £800 loan cost Erudio £40. Why didn't I get a chance to settle at even £60 or £80. I would have settled and the government would have raised even more money. I just put a petition on the Number 10 website asking for a change in the law so that every borrower has the right to "purchase" their loan whenever it is put up for sale and at the discounted price. Please sign and send these idiots a message.

erudioed

That is a mighty fine idea griffythings!
Blood boiling is right Jill, who pays their damn wages anyway, government departments?
I agree Fermi, maybe that is an interesting line, it is like everyone has a waiver on this because no one is sure. Which goes back to a previous discussion about the legality aspect, of which i assume we have no lawyer available to say yeh or nay to whether it is right or not.

Atidi

MSE_Michael wrote: »

"People who defer students loans taken out between 1990 and 1998 will have this information added to their credit files..."

Read the full story:

1990s student loan deferrals to be added to credit files

Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.

Erudio says as long as you don't fall into default, you'll be no worse off dealing with it than the SLC.

Not sure if this is just the cynic in me, but this suggests that if you do default, you will be worse off dealing with with Erudio than dealing with the SLC :cool:

And

This is despite ministers promising they [there?] would be no real change for borrowers after the loans were sold to debt collector Erudio Student Loans last year.

erudioed

Martin Lewis said it was a very dangerous precedent, something those 2 rather worrying quotes imply.
Erudio have something up their sleeves, especially deciding not to settle short and gather as much info as they can before potentially introducing such a scheme, which i would reject now, based on what melonfarmers they are being. They are going to be conducting full background checks on everything, and who knows what software, other alliances they have. Passing around such sensitive info on CRA databases i am sure has its own financial value, as well as open doors to other info these CRAs have hanging around their lockers. You may as well just drop your pants because they're not going to give up until they grab an eyeful!
I am sure most of us are fine and dont have many secrets financially but who wants anyone rooting around after you, it doesnt sound nice just thinking about it.

erudioed

right MSEs Michael Smith has amended the 2 areas lacking clarity before. It is now titled "Student loans: Graduates deserve truth about what goes on credit files".
And concerning CRA info and derefers, it is written:


Worrying development

This is a change in policy from that of the Student Loans Company, which looked after the accounts before they were sold to Erudio last November (See the Government sells student loans MSE News story). Then, only students who defaulted on payments were reported to credit reference agencies. Nothing changes for that group, but it will for those who defer.

MoneySavingExpert.com has raised concerns about Erudio's move to the Government. We will keep you informed of its response.


Me again: that is definitely clearer now, although much more worrying as the section title states!
Maybe another article could be about Erudio's background, due diligence by BIS to give Erudio the loans and the special deal Arrow Global signed with Experian, which anyone can find online with some basic key words.

fermi

Article now says:

MoneySavingExpert.com is urging the Government to urgently clear up confusion after it emerged thousands of people who defer student loans taken out between 1990 and 1998 will now have this information added to their credit files. This is despite ministers promising they would be no real change for borrowers after the loans were sold to debt collector Erudio Student Loans last year.

Here is what has happened:

• Erudio has written to about 45,000 people who defer repayments because they earn under £28,775 a year to say their details will now be given to credit reference agencies – a move we believe sets a dangerous precedent.
• Credit agencies say there's a risk that where someone owes more cash, it can hit their ability to get future credit. Although where the loan is well-managed, it can help.
• This only affects former students with loans taken out between 1990 and 1998.
• Information on people who've deferred loan repayments in the past won't be passed on – it only affects people who defer them from now onwards.
• Different systems apply toloans from between 1998 and 2012, and after 2012.
• Many students now in Erudio's hands have complained of "sleepless nights" worrying about the threat to their credit file.
• The Government insists no terms and conditions have changed, only that Erudio has adopted an approach that was open to the Student Loans Company (SLC) but not taken up.
• MoneySavingExpert.com has formally complained to the Government that its response to Erudio's change is not good enough and does not go far enough to alleviate concern from those affected.

Worrying development

This is a change in policy from that of the Student Loans Company, which looked after the accounts before they were sold to Erudio last November (See the Government sells student loans MSE News story). Then, only students who defaulted on payments were reported to credit reference agencies. Nothing changes for that group, but it will for those who defer.

MoneySavingExpert.com has raised concerns about Erudio's move to the Government. We will keep you informed of its response.

Martin Lewis, creator of MoneySavingExpert.com, says: "This flies in the face of the Government's promise that there would be no real change when it sold off the student loan debts and causes far more concern than it should.

"The sale of debts was meant to be a behind-the-scenes move, but we're hearing of more difficult forms, poor communication and little response. The Government needs to address people's concerns as a matter of urgency."

'Sleepless nights' for some

Many former students on the MoneySavingExpert.com forum are worried the change could affect their ability to get credit in the future. There also seems to be confusion over which benefits are now included as income, which affects whether or not individuals can defer repayments.

Here is a selection of comments from our forum and on Twitter:

• Campervanan says: "My friend has one of these loans and has been having sleepless nights worrying about the forms which he does not understand."
• Calliopeviolet says: "I've got a friend in the same situation and she's so stressed out about it that she's talking about just starting to pay it back even though she is eligible to defer."
• Jill18 says: "This has got me really worried and annoyed. I received my deferment forms two weeks ago but haven't decided what to do yet."
• @louisefinlay3 tweets: "I am really worried about this student loan deferment application I have received from Erudio."

Is Erudio allowed to refer deferrals to credit reference agencies?

Erudio Student Loans was set up in 2013 by debt collection firm Arrow Global.

When the Government sold the loans to Erudio, it promised the existing terms and conditions would "not be affected". Both the Government and Erudio say passing information about deferrals to credit reference agencies isn't a change in the terms and conditions.

Erudio calls it an "operation practice change", while the Department for Business, Innovation and Skills says: "The terms and conditions of fixed term student loans, which are regulated under the Consumer Credit Act 1974, have not changed as a result of their sale to Erudio.

"Borrowers have the same rights and obligations as they had when their loans were managed by the Student Loans Company. Erudio have adopted a different approach to the deferment application process which does not constitute a change to terms and conditions.

"The method of the deferment process is not part of the terms and conditions of the loan. Any decision about whether or not to offer short settlement is a matter for Erudio."

The Student Loans Company also had the power to refer deferrals to credit reference agencies, but it chose not to.

Will this affect my credit rating?

Credit reference agency Experian says a significant increase in the total amount owed may be viewed negatively by lenders, which could hinder your chances of getting credit.
Experian's James Jones says: "Many scores look at how much outstanding credit people have, so a significant increase in total amount owed might be viewed as less positive.

"But as many of these loans are only something like £2,000-£5,000, perhaps that won't be a concern to most lenders."

Jones says that overall, this "should be good news for people's credit ratings".

"A well-managed loan should strengthen someone's credit history. A deferred loan would simply show loan start date, balance outstanding and no payments due," he says.

"A loan taken out 14+ years ago is likely to improve the maturity of someone's credit history, which is often a positive indicator for credit scores."

Has there been in a change in which benefits count towards income?

With pre-1998 loans, you have to declare what you earn, including certain benefits, which was the case when the SLC managed loans. This is to work out whether or not you need to be repaying the loan.

Erudio says the benefits that count towards your monthly income have not changed since it took over managing these loans, something the SLC has confirmed.

It says benefits including child tax credits and housing benefit have always counted towards a person's income when applying for a deferral. That the benefits which were previously excluded remain that way.

Why does Erudio want more information from me?

Many have reported that Erudio is asking people to provide much more personal information than the Student Loans Company did. For example you now have to say who your employer is, your national insurance number, as well as your current account details.

MoneySavingExpert.com has seen copies of the Erudio deferral form and a copy of the old Student Loans Company one and there are a lot more boxes to fill in.

When we questioned Erudio on this, it only said it wanted to ensure loan files were as "up-to-date as possible".

What Erudio says

Erudio says as long as you don't fall into default, you'll be no worse off dealing with it than the SLC.

xv_biker1

still havent decided what to do and i need to get my forms sent back.
also filled them all in and didnt make any copies of the blank forms (numpty)
Seriously considering the template letter that was put up a while ago.
Guess at the moment everyone is just guessing tho.

i think the other person above is right tho, we live in an information age and the selling of OUR details creates these dodgy companies a lot of money