ERUDIO student loans help

Lungboy

Does anyone have a list of the issues with the DAF plus the legal arguments against them? I'm going to have a go at drafting my letter.

plong979

letter and payslips sent on saturday, recorded/signed for.

Round 2...

Pluthero

Lungboy wrote: »

Does anyone have a list of the issues with the DAF plus the legal arguments against them? I'm going to have a go at drafting my letter.

The basic answer is that a DAF, any DAF does not need to be completed in order for deferment to be granted. You just have to 'show' (send income proofs ) your income is below the deferment threshold.

Furthermore Erudio's various DAF/s ask for way to much info NOT relevant or needed to SHOW/prove income.

Furthermore Erudio FORCING you to use their DAF by not deferring without using it is coercing you into SIGNING up to their terms about data sharing/cra reporting WHICH are not explicitly given permissions in the original loan terms/agreements. And these student loans were never meant to be registered with CRA's ANYWAY!!!

So the legal argument would be for a court to enforce the 'specific performance of the original contract.' Here is a link to the legal case brought by someone on the MSE board. Dunno what the outcome was as the lawyer/poster vanished but as far as I know it never went before a judge. Possibly settled out of court with confidentiality agreements, but who knows?

https://www.dropbox.com/s/vzkyatilr0mub17/Erudio%20-%20particulars%20of%20%20claim.doc?dl=0

HTH

Personally I would fill in the income proofs section of the Erudio DAF. Remove the FPN at the end/ add my own declaration vowing that I am not entering into any change of terms. Do not sign the DAF but sign your own letter that all your evidence is correct to best of your knowledge. They will probably defer you and it will save you a load of back and forth letters/hassle. If they do not defer you via this method you can then reasonably claim to have fulfilled your side of the ORIGINAL LOAN AGREEMENT. So its a win win for you. Otherwise be ready to lawyer up to get your deferment passed.

fermi

Link does not work. Did you mean this?

https://www.dropbox.com/s/vzkyatilr0mub17/Erudio%20-%20particulars%20of%20%20claim.doc?dl=0

[FONT=Arial, sans-serif]In the COUNTY COURT___________ Case Number[/FONT]

[FONT=Arial, sans-serif]BETWEEN[/FONT]

[FONT=Arial, sans-serif] Claimant[/FONT]
[FONT=Arial, sans-serif]

---

[/FONT]
[FONT=Arial, sans-serif]And[/FONT]

[FONT=Arial, sans-serif]Erudio Student Loans Ltd Defendant[/FONT]


[FONT=Arial, sans-serif]

---

[/FONT]
[FONT=Arial, sans-serif]Particulars of Claim[/FONT]
[FONT=Arial, sans-serif]

---

[/FONT][FONT=Arial, sans-serif]

1. This is an application under section 140B(2) (a) of the Consumer Credit Act 1974 for the court to determine that the relationship between the Claimant and Defendant arising out of a Credit Agreement (or the agreement taken with any related agreements) is unfair to the Claimant. In addition to and or the alternative, the Claimant claims a breach of contract and seeks specific performance of the contract[/FONT]
[FONT=Arial, sans-serif]
2. The Claimant entered into a consumer credit agreement with the Defendant on___________[/FONT][FONT=Arial, sans-serif].[/FONT][FONT=Arial, sans-serif] The terms of the agreement are attached to these particulars of claim and marked “C1”. [/FONT]
[FONT=Arial, sans-serif]
3. The E[/FONT][FONT=Arial, sans-serif]ducation (Student Loans) Regulations 1998, hereafter the "1998 Regulations", prescribed key terms which all loan agreements are required to include. These prescribed terms are attached and marked “C2” [/FONT]
[FONT=Arial, sans-serif]
4. On 25 November 2013, the Claimant’s loan was sold to Defendant. It was stated by the Department for Business, Innovation and Skills that the borrower’s terms and conditions would not change as a result of the sale. [/FONT]

[FONT=Arial, sans-serif]5. On the _______ the Claimant applied for a deferment of the loan under section 9 of the 1998 regulations which state:[/FONT]

[FONT=Arial, sans-serif]"Each year the lender will tell the borrower new deferment level for the period between 1 September and following 31st of August. The borrower can defer making repayments of the loan if - [/FONT]

[FONT=Arial, sans-serif]a. The lender has not already asked him to repay the loan in full, and[/FONT]
[FONT=Arial, sans-serif]b. He can show -[/FONT]
[FONT=Arial, sans-serif](i) that his gross income for the relevant month is not more than the deferment level, and[/FONT]
[FONT=Arial, sans-serif](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[/FONT]

[FONT=Arial, sans-serif]6. The Claimant submitted evidence of his gross income in form of his Tax Return he submitted to HMRC. The Defendant has refused to consider the Claimant’s application for deferment because the Claimant has refused to complete the Defendant’s application for deferment (“DAF”). A copy of the DAF form is attached marked C3. The Claimant received from the Defendant a Notice that the[/FONT] [FONT=Arial, sans-serif]Account is in arrears and requested payment of the arrears. Prior to the Claimant’s loan being purchased by the Defendant, the Student Loans Company had for a number of years accepted a copy of his Tax Return as sufficient evidence of his gross income to be grant a deferment. [/FONT]

[FONT=Arial, sans-serif]7. The Claimant [/FONT][FONT=Arial, sans-serif]avers that the 1998 Regulations do not require that the application be in any prescribed form and that the Claimant only has to prove that his gross income level is within the deferment level. However, the Defendant’s DAF requires the Claimant to sign a form consenting to the passing of the Claimant’s personal information to be shared with Credit Reference Agencies. Page 6 of the DAF under the heading, “Fair Processing Notice Relation to Applications for Deferment”, it states:[/FONT]

“[FONT=Arial, sans-serif]We may also make periodic searches of our own group records and at CRA’s to manage your account with us, including whether to permit deferment.”[/FONT]

[FONT=Arial, sans-serif]8. It is averred that the Defendant can process an application for deferment without the need to conduct a search of the Claimant credit file. Indeed, the Student Loans Company from 1998 to 2013 processed deferment applications without requiring the application to give consent to a search of Credit Reference Agencies. [/FONT]

[FONT=Arial, sans-serif]9. Students who took out loans post 1998 had agreement which contained the terms that are attached to these particulars of claim and marked C4 states that information will only be passed to Credit Reference Agencies if the borrower has breached the agreement or if they are in arrears. [/FONT]

[FONT=Arial, sans-serif]10. It is averred that clause 16 of the loan agreement which the Claimant has with the Defendant does not permit the Defendant to pass information about the Claimant to Credit Reference Agencies under the Data Protection Act 1998. It is averred that after the transitional arrangements of the Data Protection Act 1998 ended, data processing that was previously governed by the 1984 Act was required to comply with the principles of the 1998 Act. It is submitted that Clause 16 on its own does not permit the Claimant’s data to be passed to Credit Reference Agencies. Even if it does permit the passing of information to Credit Reference Agencies, it is averred that this clause is unfair in light of related agreements. [/FONT]

[FONT=Arial, sans-serif]11. The Claimant avers the agreement and the way that the Defendant is exercising its rights under the agreement is an unfair relationship under section 140A of the Consumer Credit Act 1974 as amended. The particulars of why the Claimant avers that there is an unfair relationship include:[/FONT]

1. [FONT=Arial, sans-serif]Requiring the Applicant for a Deferment to complete a form that contains unnecessary and personal detail[/FONT]
2. [FONT=Arial, sans-serif]Requiring the Claimant to sign a form that gives the Defendant permission to search the Claimant’s credit reference file[/FONT]
3. [FONT=Arial, sans-serif]By pressuring applicants into signing and agreeing to the information in the “Fair Processing Notice” at the end of the deferment application form it is an unfair attempt to make changes to the terms of the original agreement despite assurance at the time of assignment of the loan that the terms and conditions would not be altered. Student loans taken out after 1998 contains a term which states that it will only pass on information to Credit Reference Agencies if the borrower is in default. [/FONT]
4. [FONT=Arial, sans-serif]Refusing to even consider the application for deferment unless the Applicant sign the Defendant’s Application form. Student Loan Company had for many years processed the a deferment application without requiring the information the Defendant has put on the deferment application[/FONT]
5. [FONT=Arial, sans-serif]Stating to applicants that it requires the setting up of a Direct Debit to enable an application for deferment to be processed where as the terms of the loan only states that repayment be made by Direct Debit; if the loan is deferred, there are no repayments to make.[/FONT]
6. [FONT=Arial, sans-serif]Chasing for arrears when the agreement is not arrears because the arrears have arisen only because of the Defendant’s wrongful refusal to consider a deferment application. [/FONT]
7. [FONT=Arial, sans-serif]The way the Defendant is considering what is “gross income” in light of the fact that the “Student Loan Company” for many years considered gross income on a different criteria.[/FONT]

[FONT=Arial, sans-serif]12. The Claimant also avers that the clause 16 of the loan agreement is unfair under the Unfair Contract Terms Regulations 1994 which were in existence at the time the loan agreement was signed. The terms of the agreement were not individually negotiated. The clause causes an significant imbalance in the parties rights and obligations under the contract to the detriment of the consumer.[/FONT]

[FONT=Arial, sans-serif]13. Further, the Claimant avers that the Defendant is in breach of contract by failing to consider his deferment application. [/FONT]


[FONT=Arial, sans-serif]AND THE CLAIMANTS CLAIM[/FONT]

1. [FONT=Arial, sans-serif]A Declaration that there is an unfair relationship under section 140A of the Consumer Credit Act 1974 and that the Court make an Order that it thinks fit under Section 140B of the Consumer Credit Act 1974[/FONT]
2. [FONT=Arial, sans-serif]An Order for Specific performance of the contract in that the Defendant be required to consider his application for deferment[/FONT]
3. [FONT=Arial, sans-serif]Any other order or relief that the court thinks fit[/FONT]
4. [FONT=Arial, sans-serif]Costs[/FONT]

[FONT=Arial, sans-serif]STATEMENT OF TRUTH[/FONT]


[FONT=Arial, sans-serif]Signed Dated[/FONT]


[FONT=Arial, sans-serif]Claimant[/FONT]

fermi

Above is a repost and copying out of a link earlier in this thread.

I make no suggestion that people should use or adapt that, in whole or in part.

anna2007

Lungboy wrote: »

Does anyone have a list of the issues with the DAF plus the legal arguments against them? I'm going to have a go at drafting my letter.

This is my amended page 6 of the DAF sent to Erudio last week, if it helps. Agree with Pluthero that it's just being clear you're not consenting to their proposed information processing/changes to terms. I ended up signing the DAF, as I don't have time to fight them over a signature, when it's the data sharing/credit searches I object to. If they want to go ahead when I've made it as clear as I can that I don't consent, then I'll give them notice under section 10 of the DPA and take it to court (may do that before any reporting, as you can use section 10 to object to processing before it starts).

https://www.dropbox.com/s/ukea1xjpsptuzl2/DAF%20Page%206%20redacted.jpg?dl=0

When Erudio say they already have consent through the loan agreement, the following might help, as it confirms that the consent Erudio are relying on in the original agreement isn't legally valid:

https://forums.moneysavingexpert.com/discussion/4923210

MPE-J

I'm having issues with Erudio.
Due to cost cutting at work and family pressures (nursery costs more per hour than I earn) I voluntarily agreed to reduce my hours at wirk this year -starting April.
Therefore my pre April payslips show my old salary which is over the new lowered threshold for repayment.
My new salary as of April is below the threshold and I sent a letter from my employer with my deferment form stating what my monthly and annual salary will be and Erudio are refusing to accept it stating that I must supply payslips despite the fact that they reflect a salary I am no longer on.
I can't afford repayments as I'm earning less and an a bit bewildered that they expect me to pay even though I am earning less than the required amount for repayment.
Advice please.

anna2007

@ MPE-J Has your employer given you a new employment contract, reflecting the change in your hours? According to Erudio's How to Guide, this is sufficient evidence (plus one payslip), instead of 3 payslips - see page 14 here:

http://www.erudiostudentloans.co.uk/lib/docs/145040-how-to-guide-getting-your-deferment-application-formright.pdf

On the same page, it states that a letter from your employer can be provided, but only to confirm earnings for the previous 3 months and that payslips for that period aren't available.

Lungboy

Thanks all, I intend to include a pretty detailed letter with why I'm refusing to sign their DAF, which includes everything that has been mentioned. I have a nasty feeling that amendments to their DAF will be ignored/overlooked by Erudio, so I'd rather not do that. If it drags on and on then so be it, it's no skin off my nose. I'm undecided yet about cancelling the DD that is currently active however, at least until I have had their initial response.

One question about income evidence: can I black out bank account details like acc number/sort code etc when showing the small amount of interest I earn from savings, and just leave the interest payment amount showing?

MPE-J

Thanks Anna,
I don't have a new contract as such as its the same job just less hours.
I've got a letter confirming gross pay which I've sent.
After a morning on the phone it would appear I have to spend the next three months paying whilst accruing enough payslips on my new salary to them defer from that point on.