ERUDIO student loans help

anna2007

Pluthero wrote: »

ESL knew people could defer payment when they bought the loan book but appear to be on a campaign to make this as difficult/time consuming as possible. I am not surprised at this as they are backed by Arrow Global and CarVal Investors: debt collection specialists with a monetary interest in turning legitimate deferrers into debtors.

This has clearly been their modus operandi from the very start. There's an interesting Arrow Global presentation here (thanks to Mr McGuffin for finding it), aimed at potential investors, where our student loans get an ominous mention on page 16:

http://www.arrowglobalir.net/files/file/download/id/130

It looks like all of our deferred loans were initially held by Carval, but Arrow Global are "investing" up to £22 million in 28% of the loans, by 2016. I imagine this involved targeting the 28% of our loans that they think will give maximum opportunity to realise their strategy to "convert non-paying accounts" (it actually states this as a strategy on page 13).

Makes you wonder how that 28% is made up... deferred accounts that are close to the threshold (or maybe cancellation)? Or accounts with arrears? This might explain why Erudio seem to use more aggressive tactics on some, and others have been deferred without too much hassle.

fermi

Pluthero

anna2007 wrote: »

This has clearly been their modus operandi from the very start. There's an interesting Arrow Global presentation here, aimed at potential investors, where our student loans get an ominous mention on page 16:

http://www.arrowglobalir.net/files/file/download/id/130

It looks like all of our deferred loans were initially held by Carval, but Arrow Global are "investing" up to £22 million in 28% of the loans, by 2016. I imagine this involved targeting the 28% of our loans that they think will give maximum opportunity to realise their strategy to "convert non-paying accounts" (it actually states this as a strategy on page 13).

Makes you wonder how that 28% is made up... deferred accounts that are close to the threshold (or maybe cancellation)? Or accounts with arrears? This might explain why Erudio seem to use more aggressive tactics on some, and others have been deferred without too much hassle.

How much of these are DEAD? I.E 6 years clear of contact with the SLC and so statute barred? Whatever way you look at it, lots of money to be made by hassling honest deferers!

Pluthero

I made a general advice/sticky type post which condenses a lot of the issues thus far. Its a work in progress so feel free to add amend it as you all like. Mods feel free to move delete if it breaks any forum rules.

First thing to be aware of is that ERUDIO are a DCA (debt collection agency) and are foremost interested your MONEY. They bought your student loans for 5p in the pound! (http://en.wikipedia.org/wiki/Erudio_Student_Loans) This I argue is a great conflict of interest with their other purpose as the company who should be deferring your loans should you be under the repayment threshold!

They will be difficult/obtuse/horrible to communicate with in anything to do with deferment as they would love to put you into arrears, they want you to PAY and you being under the deferment threshold means they can't get PAID. It's not helped that their administration has been outsourced to Capita with their infamous abysmal customer service.

Be firm and tell ERUDIO the income proofs/documents/wage slips/tax returns etc were good enough in the past with the SLC (Student Loans Company) and the Original Loan terms still apply and cannot to changed or amended by Erudio. Here is the relevant section of the terms:

'The Education (Student Loans) Regulations 1998 State:

9. Each year the lender will tell the borrower the new deferment level for the period between 1st September and the following 31st August. The borrower can defer making repayments of the loan if—

(a) the lender has not already asked him to repay the loan in full, and

(b) he can show — (Not complete a DAF or let Erudio have access your entire financial history)*

(i) that his gross income for the relevant month is not more than the deferment level, and

(ii) if the lender asks, that his gross average monthly income during the 3 months immediately following the relevant month will not or is unlikely to be more than the deferment level.'

* http://hansard.millbanksystems.com/written_answers/1990/jun/19/student-loans

Extract from Hansard debate on student loans:

[FONT=&quot]Mr. Andrew Smith[/FONT][FONT=&quot] : To ask the Secretary of State for Education and Science if a student in agreeing to the terms and conditions of a student loan authorises the Student Loans Company to make future searches on their income, via employers and banks.[/FONT]

[FONT=&quot]Mr. Jackson[/FONT][FONT=&quot] : The terms and conditions of a loan agreement will not authorise the Student Loans Company to investigate borrowers' incomes through their employers or banks. Borrowers wishing to defer repayments will be required to produce evidence that their income falls below 85 percent of national average earnings.[/FONT]

You are under no obligation to use Erudio's DAF whatever version they may bring out. You just have to show evidence that you are under the threshold to repay.

You are going to have to be firm in dealing with their Erudio's DCA tactics. If you are under the repayment threshold send the IDENTICAL information you sent SLC in the past, if possible get the old SLC form from the internet. Or you can use Erudio's DAF (send a cover letter stating to are not accepting any new terms) and erase the FPN (fair processing notice) and all other unnecessary information. They may reject this information, stick to your guns and resend the info with EVERY NASTY threatening arrears letter they will send. Then forget about them until next year's deferment and repeat until your 25 years/50 years of age loan expiry time frame is up.

TOP TIPS

Set up the 'read receipt' option with your email so you can PROVE they received it!

You must use recorded mail for your initial deferment documents and email the same info as back up! (Since privatisation the Royal mail has been quite bad at delivering mail to Erudio.)

NEVER EVER PHONE THEM!

Put all your loan refs/name/DOB/Erudio ref numbers on EVERY email (create a template or cut and paste) you send them or they will claim they lost it or did not receive it or could not process it due to DPA or security reasons etc!


Can all people suffering at the hands of Erudio please report them to the:
FCA: [EMAIL="consumer.queries@fca.org.uk"]consumer.queries@fca.org.uk[/EMAIL] and the
FOS: [EMAIL="complaint.info@financial-ombudsman.org.uk"]complaint.info@financial-ombudsman.org.uk[/EMAIL]
And as its election year
Your MP.

There are a great many people helping out with advice on the MSE (Money Saving Expert) thread, believe me YOU are not ALONE, 3000+ posts and counting! Also a few thousand posts about Erudio on MumsNET. Also check out numerous CAG (Consumer Action Group) threads who have knowledgeable mods willing to dispense advice. There are also threads/discussion on the Legal Beagles Website.

THE GOVT TOLD US THE TERMS OF OUR LOANS WOULD NOT CHANGE. THE ERUDIO DEFERMENT PROCESS SURE IS A LOT MORE HASSLE/STRESSFUL THAN THE SLC PROCESS EVER WAS!

DON'T STOP FIGHTING FOR YOUR RIGHTS.

gardenia101

Heard back from my MP today - 2 letters both of which were in such amazingly large print that I could almost read them at arms length :j. Sadly the minion at his office hadn't thought to enlarge the enclosures, so I've had to dig out my trusty magnifier (great joined up thinking :mad: but oh so common for those of us with disabilities. Quite annoying when one of the main points of my complaint was about not being able to read correspondence :wall:)

Anyway - one of his letters confirmed that officials at Greg Clark's office (Minister for Universities, Science & Cities) had "contacted Erudio who have confirmed that her application has now been processed & accepted".

Sure has

Bit surprised as I'd told my MP that I didn't want him to contact Erudio directly; I just wanted him to look into the background of it all, but I guess that got lost in translation as it went up the food chain.

So, fellow sufferers, do we all think that Erudio just happened to get their ducks in a row regarding my account & it all would have worked out beautifully if the Minister hadn't inquired?

The second letter confirms what someone else has posted on here about the SLC having dedicated teams that Erudio can liaise with regarding customers' accounts prior to the sale on 01/03/14. It sounds as if we, as former customers of SLC cannot use these SLC liaison departments directly though, & we still have to deal with Erudio.

Nothing from FOS yet - not hopeful, so Pluthero I may be using parts of your letter if you don't mind? I also have a brick handy....

fermi

gardenia101, to make it easier for people would you mind summarising what you did actually apply with and do with Erudio, and what the issues or sticking points with the deferral for you were?

Thanks.

Well done by the way. :j :T

dizzybuff

Right the idiot of an adudicator has got back to me stating the decision is final and can not be altered. Six months it has taken to get to here and she misses a viral point in the ombasmans info. I will draft a complaint against her tonight and email her manager. I'm !!!!!!! peed off with this.

anna2007

Pluthero wrote: »

How much of these are DEAD? I.E 6 years clear of contact with the SLC and so statute barred?

That might be why Arrow Global only paid £11 million for a 50% share of loans with a face value of £307 million!!

No doubt the deferred loans are far more valuable to Arrow Global than the rump of the defaulted ones that may still be recoverable... but it wouldn't be very politically correct for BIS/Erudio to admit that they've shafted legitimate deferrers in such a way.

dizzybuff

complaint submitted again... sigh

spacemanc

Pluthero wrote: »

How much of these are DEAD? I.E 6 years clear of contact with the SLC and so statute barred? Whatever way you look at it, lots of money to be made by hassling honest deferers!

Is that true? I'm not sure that I was in contact between 2008-2014. Are you sure that a SL can become statute barred?