ERUDIO student loans help

TraceE_2

ericctheking wrote: »

So at first the SLC said they had nothing to do with these miss-sold loans. Then they admit from freedom of information requests that they defer people with split loans. Now they hold details and have a liaison department!

Apparently so ..... "Liasion Department" was the exact term used by SLC customer services, they may have been refering to the people who deal with split loans though.

Even so I have only one pre 98 loan that has been sold to erudio and the SLC customer services still accessed my records instantly when given the reference number.

thin_king

Hi All,

I am new to the forum and to be honest the whole Erudio situation – I have been deferring since 2000 and was not aware on the massive reduction in threshold for this year until last night!!! I have not received (as far as I’m aware) anything to indicate this change – all I’ve received is my annual statement!

Anyway I have skimmed this thread and become increasingly concerned that by filling the deferment forms back in May (stupidly providing all information they requested) that my credit rating will now have gone down the pan even though I have not defaulted on the agreement? Can anyone give me some advice on this as I was hoping to get on the housing ladder next year 

BaffledByErudio

Not necessarily 'down the pan', as you ask, but I don't think many of us have the cold, hard facts.
I'm not sure any of us have specific damage done to our credit files yet and although there are 'footprints' showing on credit reports, where Erudio have done a search, actual loans don't seem to be reported (YET).
That's not to say they're not going to do this, as obviously, the deferment form pretty much says they can if your loan was taken out before 1998.
Back when all this kicked off, Martin Lewis:money: quizzed Erudio management on BBC radio about the impact such credit reporting would have on those of us with loans. The consensus that Erudio tried to stress was that the impact wouldn't necessarily have a bad effect and could indicate to potential borrowers a case of 'debt managed properly'. Although a lot of us are sceptical about this - I mean, how attractive does a 15-year+ old debt look, with none of it paid back?
As graduates, we know we've done nothing wrong by deferring and we've become accustomed to an operating practice where the loans were never reported to CRAs. Although, staggeringly, when everyone kicked up a fuss about Erudio, Student Loans Company miraculously announced it always had the permission to report deferred loans, but just chose not to for 20 years! (Maybe they gave Erudio a nudge in the right direction, as a sweetener, when they sold the loan book?) Who knows?
One thing that is a bit skew-whiff is the way Erudio is proposing to log these loans with Credit Ratings firms, as there isn't really an existing precedent because deferred loans have never previously been reported. Erudio's intention is to record the loans as being in a 'payment holiday', which is totally incorrect, as this set up is pretty much designed to indicate that a borrower has a debt he's obliged to pay, but can't afford to, so has been given forbearance. Whereas, as long as we're under the salary threshold, we're not obliged to pay.
It's all as fishy as Grimsby Docks in mid-July and your guess is as good as ours because there hasn't really been a test case yet.
Hope that helps and please pardon my cynicism - you'll grow to adopt it yourself, the more you read about these unscrupulous buffoons!

thin_king

BaffledByErudio - thanks so much for the detailed response that really has explained a lot regarding the current situation which I really appreciate.

I was thinking I may seek a reduced lump sum settlement next year to get out asap but apparently they are a definite no no with Erudio....of course!

I suppose it is a case of watch this space then.

erudioed

Yes, they are missing/missed a trick there. If they offered all deferrers a 20% one time payment right at the start of the process (not to mention SLC should have offered us a similar deal before selling our loans on), they could have made a tidy sum i think. But now theyve turned up so many noses, i wouldnt allow them to get warm from the steam off my sheet on a bone chilling winters night, such is how much theyve turned my nose up. Even now, people with a couple of years left havent been offered a 1 time short settlement. Still, if thats how they choose to run a business, playing the long game and running up many unnecessary administration costs, then so be it. If i had shares in Arrow, just knowing how they have chosen to operate on just one small part of 1 deal in their business portfolio, i would be seeking a board change for terrible loss-making decisions.
Welcome thin king, welcome to the rather depressing ride...

psbrett

atomickarma wrote: »

I recently wrote to Erudio to defer in letter form, but have received a letter from them today which states:

We have recently received an application for deferment from you However the form was not signed and dated. Please complete the attached form again and return it to us as soon as possible.

If you fail to return the form you monthly repayments will become due and if these repayments are not met your account will fall into arrears.

I'm aware other users have deferred via letter. So what should I do next? Would it be worth using their form but only filling in the information they actually need, or would a response via letter outlining why I haven't used their form be better?

Thanks

What did you do as I also received one of these. I did nothing as I stated in my letter I would not sign their deferment form.
I now have a chaser now which I have 14 days to contact them or I default and lose the right to defer. I'm so angry Should I sign this deferral form?

rizla_king

Legally they have no right to insist that you use or sign their form.

Practically for people you have to decide if thats something you want to fight on principle or just get your deferment done.

PoppyR_2

Further to my deferment post from last month here is the update -

I sent Erudio a letter from my 3rd party support together with a bank statement proving receipt. They received it on the 30th October. They haven't replied. My deferment period ended on the 19th November.

Today they took the DD. I phoned my bank who refused the DD and returned it. The DD guarantee from Erudio clearly states the DD amount is £0.00 and they have not notified me otherwise, directly contravening the DD Guarantee.

I have written to them again enclosing copies of everything.

I believe they are forcing my account into arrears so they can attempt debt collection. I am so angry right now......

Pluthero

PoppyR wrote: »

Further to my deferment post from last month here is the update -

I sent Erudio a letter from my 3rd party support together with a bank statement proving receipt. They received it on the 30th October. They haven't replied. My deferment period ended on the 19th November.

Today they took the DD. I phoned my bank who refused the DD and returned it. The DD guarantee from Erudio clearly states the DD amount is £0.00 and they have not notified me otherwise, directly contravening the DD Guarantee.

I have written to them again enclosing copies of everything.

I believe they are forcing my account into arrears so they can attempt debt collection. I am so angry right now......

I have read a lot of posts about erudios abysmal response times. Am personally a victim of them. Whether this is just shambolic incompetence or just low cunning to push people into arrears I don't honestly know. BUT at the very least it makes them unfit for the purpose of administering the deferment process. Did the sale not put any safe guards in place about the buyers ability to handle this very basic administration process?

BaffledByErudio

PoppyR wrote: »

Further to my deferment post from last month here is the update -

I sent Erudio a letter from my 3rd party support together with a bank statement proving receipt. They received it on the 30th October. They haven't replied. My deferment period ended on the 19th November.

Today they took the DD. I phoned my bank who refused the DD and returned it. The DD guarantee from Erudio clearly states the DD amount is £0.00 and they have not notified me otherwise, directly contravening the DD Guarantee.

I have written to them again enclosing copies of everything.

I believe they are forcing my account into arrears so they can attempt debt collection. I am so angry right now......

So, PoppyR, you mean to say that Erudio's Direct Debit mandate on your account still says £00.00, yet they've taken a sum of cash anyway?
If so, that's very worrying.
After the stray payments at the beginning of this debacle, and after begrudgingly allowing them my bank details, I have used that '£00.00' set up on my account as an indicator to me that no funny business is going on. Should I see it change to an active payment, I'd be able to try and ask questions before the cash went out.
But if they can take cash outside of a specific amount they've put in place, and that amount still shows on our accounts, then that's bonkers. Rather than £00.00, they might as well just write 'any amount at any time we want when we see fit'.