ERUDIO student loans help

erudioed

A heads up on a new FOI request to the FCA on a number of issues and how the FCA would protect Erudio's 'customers' if successful court actions go against Erudio or a certain number of complaints are upheld by the Ombudsman. Its a good read:
https://www.whatdotheyknow.com/request/erudio_student_loans_limited

evilsheep

Many thanks fermi and Anna2007 - I have replied, pointing out their misleading and incorrect regulations quotation, and reminding them that I have fully complied with the correct regulations (which I have quoted), and I've also quoted their website's figures on current deferment threshold.

I don't expect a reply for several weeks, as that seems to be the norm.

They really are completely inept; they didn't even manage to respond to the right complaint, and then end the letter with:

" We hope we have answered your complaint satisfactorily. If you feel we have misunderstood your complaint or you have any further details you believe we should consider, please do not hesitate to contact us

We can confirm this is our final response regarding your complaint. If you remain dissatisfied you can refer your complaint to the Financial Ombudsman Service. We have enclosed a leaflet .... [etc]

Surely those two paragraphs contradict each other?

Moneyer

fermi wrote: »

"12. The lender will cancel the borrower’s liability to repay [….] when the last agreement for a student loan has been outstanding for not less than 25 years [….]"

Does anyone know the precise meaning of the agreement being "outstanding" here? Are the 25 years counted from (i) the date the agreement was signed, or (ii) the date the first payment was made to the borrower or (iii) the date the first repayment was due or (iv) some other date?

fermi

I think BIS have claimed somewhere recently that it is once the final instalment or your final loan has been paid to you?

Sort of makes sense as that is when the full final loan is technically fully made and outstanding, even though the regulations don't require you to to start repaying or deferring until the April following that academic year.

Moneyer

fermi wrote: »

I think BIS have claimed somewhere recently that it is once the final instalment or your final loan has been paid to you?

Thanks! But it would be nice to find a definitive legal statement. I'm really surprised this isn't spelled out more clearly, and there'll be some people in repayment at the time of cancellation, for whom the exact date of cancellation makes a big difference to how much they ever repay.

Do I recall correctly that the first mortgage-style loans were issued in 1990? If so I suppose the first cancellations under the 25-year rule will kick in over the next couple of years so hopefully things will become clearer then...

anna2007

@ Moneyer Here's a copy of the letter I received from BIS, confirming their view of when the last loan becomes "outstanding":

https://www.dropbox.com/s/g4hy0besp1jh12o/BIS%20Response%20Loan%20Cancellation%20200115.rtf?dl=0

I took out my first loan in 1990, and the last loan in February 1993. Erudio have confirmed in writing that my loans are due to be cancelled in February 2018, which fits with BIS's view.

I can't see any court disagreeing with BIS, it makes sense that the loan becomes outstanding once paid to you and incurring interest. But if you're worried, get Erudio to confirm the date in writing.

I don't think it's the loan cancellation date we need to worry about, in the end it can't be changed. Erudio were keen to stress the point that my loans would only be cancelled if there were no arrears on my account, mentioned it twice in a short letter. That's what we need to be concerned about, as Erudio will try every trick to create arrears - delay/refuse deferment, demands for repayments when none are due, creating 'gaps' in deferment periods, understating interest on the annual statement, etc, etc.

fermi

Ahh. Not quite as I recalled then.

Jonez

anna2007 wrote: »

@ Moneyer Here's a copy of the letter I received from BIS, confirming their view of when the last loan becomes "outstanding":

https://www.dropbox.com/s/g4hy0besp1jh12o/BIS%20Response%20Loan%20Cancellation%20200115.rtf?dl=0

I took out my first loan in 1990, and the last loan in February 1993. Erudio have confirmed in writing that my loans are due to be cancelled in February 2018, which fits with BIS's view.

I can't see any court disagreeing with BIS, it makes sense that the loan becomes outstanding once paid to you and incurring interest. But if you're worried, get Erudio to confirm the date in writing.

I don't think it's the loan cancellation date we need to worry about, in the end it can't be changed. Erudio were keen to stress the point that my loans would only be cancelled if there were no arrears on my account, mentioned it twice in a short letter. That's what we need to be concerned about, as Erudio will try every trick to create arrears - delay/refuse deferment, demands for repayments when none are due, creating 'gaps' in deferment periods, understating interest on the annual statement, etc, etc.

Not very long now until my loans are due for cancellation. I'm still expecting them to try something on in order to prevent or delay that from happening.

anna2007

fermi wrote: »

Ahh. Not quite as I recalled then.

Just to confuse things, I think my first installment would also have been my last installment, as I applied late in the academic year!

anna2007

Jonez wrote: »

Not very long now until my loans are due for cancellation. I'm still expecting them to try something on in order to prevent or delay that from happening.

Is cancellation due before your current deferment's up Jonez? If so, I doubt if there's much they can do now to prevent it.

Good luck with it, must feel good to be in sight of the escape route