ERUDIO student loans help

ymeu

Apologies for butting in on a tangent....

So, if Erudio were a bit slack in sending out deferment packs (and it looks that way as far as I'm concerned) and people aren't too diligent about chasing them up and consequently miss the cut-off date - Erudio will then try and bluster and bombast and arm-twist further until some people who aren't liable to repay will give in and start making payments to Erudio.

I can't recall how little Erudio paid for all the student debts, but if, for example they paid 10p for every £1 of debt, they only need one in every ten borrowers to start paying before they break even and two in every ten borrowers means Erudio would be on 100% profit - twice what they paid for the debt.

Is my maths right there?

BaffledByErudio

ymeu wrote: »

Apologies for butting in on a tangent....

So, if Erudio were a bit slack in sending out deferment packs (and it looks that way as far as I'm concerned) and people aren't too diligent about chasing them up and consequently miss the cut-off date - Erudio will then try and bluster and bombast and arm-twist further until some people who aren't liable to repay will give in and start making payments to Erudio.

I can't recall how little Erudio paid for all the student debts, but if, for example they paid 10p for every £1 of debt, they only need one in every ten borrowers to start paying before they break even and two in every ten borrowers means Erudio would be on 100% profit - twice what they paid for the debt.

Is my maths right there?

They actually paid 5p in the pound. (Well, the CarVal Investors side of the deal paid the bulk of it, rather than Arrow Global, whose DCA muscle we're sampling, but that's another argument).

Regarding missing the cut off date. Last year Erudio took the stance that yes, you WOULD indeed start paying it back if they hadn't managed to process your deferment in time. But, you're entitled to backdate deferment by a total of three months, so you'd get your cash back. This was, of course, at the same time they were wrongfully dipping into the accounts of legitimately deferred customers anyway!

We'd been led to believe things would be much smoother this year, but they don't look like they're in any hurry to start sending everyone a form, despite being just weeks away from end of deferment period.
So I guess they'll try the same game again.
If and when your DAF arrives, and you DO use it, make sure you send it back recorded delivery, as Erudio often denied recieving forms last year, or claimed they had been lost.

ymeu

5p in the pound! I bet they were rubbing their hands in glee at the thought of all the 'soft students' they could turn over.

Thanks for the tip Baffled - I'll be recording everything!

Jonez

If and when your DAF arrives, and you DO use it, make sure you send it back recorded delivery, as Erudio often denied recieving forms last year, or claimed they had been lost.

Or claim that the form wasn't signed - another of their favourite delaying tactics. They also, in my experience, do not inform you if they have rejected your application. Last year, I saw that they had set up a DD within two weeks of receiving the form. I wrote to them immediately asking for a status update and was told it had been rejected. Had I not asked, I have no doubt they'd have left it hanging until I went into arrears.

heartbroken

Yes, in their final response letter Erudio quoted the 97 regulations (regarding the need to 'satisfy' the loan administrator) and say the 98 regulations ('show' evidence of income) does not specify the method of deferment, and so basically discounts it completely! So wrong.

Received FOS response today. What I was expecting really.

1) FOS think the courts are better placed for making rulings on need for DAF

2) Agrees with me that the DAF implied that submitting and signing it, constituted an agreement to change my t&cs and would enable them to report my post 98 loans to CRA. After writing to Erudio they have confirmed that ONLY by signing the FPN contained in the original welcome pack and not on the DAF would I be agreeing to that change in T&Cs. In essence you 'opt-in' to allow the reporting rather than having to 'opt-out'. Hmmmm...

3) Views the amended DAF as reasonable. The mention of the FPN is not present and so removes this ambiguity.

Does not believe that the new DAF does not constitute a detrimental change to my t&cs. It refers to the 'How to' guide and my mention that these could change but FOS understand that signing would refer to the guide on that date alone and no subsequent changes.

And so on. Recommendation is for Erudio to backdate deferment, remove all arrears and for me to sign new daf. No mention of compensation for all this stress and anxiety for the past year. I want them to pay!!

Will have to really think about this.

Happy to direct message full letter if anyone wants to see a copy.

Fed up.

erudioed

heres something if interest from the budget today:
1.55
In March 2015, the Treasury signed a binding agreement to sell its entire holding in
Eurostar International Limited for £757 million. Other asset sales include those of shares in
Greencoat UK Wind for £52 million, ConstructionLine for £35 million, Food and Environment
Research Agency for £20 million and Defence Support Group for £140 million. Progress
also continues towards the sale of the government’s stake in Urenco, the pre-2012 Income
Contingent Repayment student loan book and public sector spectrum. A central estimate of
approximately £12 billion is expected from the sale of the Income Contingent Repayment
student loan book.

It makes sense really, especially after the last student loan sale has been so successful. It makes you wonder if anyone from the government has been watching what has been happening to us very closely.


ADDED April 13th, 2015: link to the full budget, this info is presented in part 2.15 Asset Sales

Brooker_Dave

So best course of action is:

Don't bother wait for a form that may not come.

Send a letter with proof *showing* that were under the threshold for payments.

Don't use the DAF as we're still signing away our rights and signing up to dynamic terms and conditions on a website that could change at any minute.

When Erudio/Arrow refuse deferment, complain, and then raise a complaint with the toothless FOS.

Use the court to enforce the agreement and extract compensation for being needlessly messed about by loansharks working out of a tax haven?

Pluthero

Brooker_Dave wrote: »

So best course of action is:

Don't bother wait for a form that may not come.

Send a letter with proof *showing* that were under the threshold for payments.

Don't use the DAF as we're still signing away our rights and signing up to dynamic terms and conditions on a website that could change at any minute.

When Erudio/Arrow refuse deferment, complain, and then raise a complaint with the toothless FOS.

Use the court to enforce the agreement and extract compensation for being needlessly messed about by loansharks working out of a tax haven?

Sounds about right. Yet We are told by BIS/FOS/etc etc that terms and CONDITIONS have not changed under Erudio.

Hmmm. Sure is a bit different than sending ONE A4 sheet of paper to the SLC with some wage slips...

Brooker_Dave

Pluthero wrote: »

Sounds about right. Yet We are told by BIS/FOS/etc etc that terms and CONDITIONS have not changed under Erudio.

BIS/FOS/Erudio all bat for the same team.

This is the government that has Michael Green as it's chairman...

Expecting more than BS and lies from them is wishful thinking.

But we do have the courts to enforce our rights.

Jonez

erudioed wrote: »

heres something if interest from the budget today:
1.55
In March 2015, the Treasury signed a binding agreement to sell its entire holding in
Eurostar International Limited for £757 million. Other asset sales include those of shares in
Greencoat UK Wind for £52 million, ConstructionLine for £35 million, Food and Environment
Research Agency for £20 million and Defence Support Group for £140 million. Progress
also continues towards the sale of the government’s stake in Urenco, the pre-2012 Income
Contingent Repayment student loan book and public sector spectrum. A central estimate of
approximately £12 billion is expected from the sale of the Income Contingent Repayment
student loan book.

It makes sense really, especially after the last student loan sale has been so successful. It makes you wonder if anyone from the government has been watching what has been happening to us very closely.

So - government is already selling off income contingent loans to private companies? How is this whole thing not destined to become a massive mis-selling scandal?