ERUDIO student loans help

halfpricedebt

I've made some headway with my thinking and now have two choices in front of me:

I can stick to my principle guns which, while admirable, are potentially going to mean having a partial flag on my credit file for six years, or I can pay them off in full and owe my Dad instead.

The thing I have to think about is how likely is it I will be able to get a mortage in the next 6 years now we've got another Tory government for the next 5? Even if I had enough for a deposit (which currently I don't), what would I realistically be able to afford? Or do I just protect my credit file and pay the amount in full on the off chance that I may have some sort of miracle and be able to afford my own place?

Did anyone find out if it effects your mortgage prospects?

BorderReiver14

Pluthero wrote: »

Looks good lungboy.

Erudio will not defer you if you do not use their DAF.

Erudio has admitted in an fos response that they are not allowed to do a credit search as the original terms do not allow it.

The CRA threat is still a hollow One and may actually not affect credit scores. And whether you use the DAF or not Erudio they are insisting the original terms allow it. FOS will be no help with this either.

Hi all... Where has Erudio admitted in an FOS response that they are not allowed to do a credit search as the original t&c do not allow it?

No news with my case. Ombudsman will be looking at it. Going to take legal action too as you all know its the only way to get them to $#+$ off.

halfpricedebt

So they can't touch your credit files?!

fermi

halfpricedebt wrote: »

I've made some headway with my thinking and now have two choices in front of me:

I can stick to my principle guns which, while admirable, are potentially going to mean having a partial flag on my credit file for six years, or I can pay them off in full and owe my Dad instead.

The thing I have to think about is how likely is it I will be able to get a mortage in the next 6 years now we've got another Tory government for the next 5? Even if I had enough for a deposit (which currently I don't), what would I realistically be able to afford? Or do I just protect my credit file and pay the amount in full on the off chance that I may have some sort of miracle and be able to afford my own place?

Did anyone find out if it effects your mortgage prospects?

Most people claim that the partial marker has very little effect, but in the same breath explain that is because most of the time it is associated with an account with a default on it, and the default is far far worse, meaning for most purposes the partial settlement marker is neither here nor there.

In a case such as this where presumably no default is to be recorded, then at least common sense would dictate that relative negative impact could be much greater.

After all, credit rating and assessment is about risk management using past behaviour, and a marker that says you decided you did not want to pay the full amount of a debt, and that the lender decided that accepting it was realistically their best option, does not in most eyes look good when trying to assess how reliably and fully you will pay future commitments.

Not that all lenders would necessarily take that view given all the data, but it is a risk that I cannot see being discountable.

halfpricedebt

Ok, so is a partial settlement seen as a default then? Even if the settlement has been accepted and closed?

fermi

Depends entirely on how each potential lender chooses to rate and assess risk from past behaviour. Some may, some may not, some may take an in-between stance.

You simply can't say yes or no, or it will or it won't.

halfpricedebt

I think at this point, just paying them off, as much as it pains me considering how they are getting money out of people, is the best route. There's just no way to know for sure. At the moment the things Erudio have said they would do have not happened. I cancelled my Direct Debit and they did nothing and they haven't registered my loans on my credit file at all. Chances are they wouldn't based on what they've done so far but without knowing for sure it would probably be silly to take the risk.

fermi

Yes, this is all assuming that Erudio do report what they say they will, which in virtaully all cases I've seen so far they have not yet done. Apart from some examples of searches, I don't recall hearing of the actually recording account data about loans which were not already on reports.

BorderReiver14

halfpricedebt wrote: »

So they can't touch your credit files?!

Bottom line is that until it is tested in court no one knows for sure.
There have been cases of them doing 'soft' searches on credit files which is why I am keen to learn if they really have admitted to the FOS what Pluthero has mentioned.
In terms of 98 onwards they need consent to mark files... with loans before this time, they are relying on s16 which is dubious and the point that needs tested. It appears thus far, they are happy to threaten to report loans on credit files but have not... generally quoting it as a possible future policy. Some are now thinking it is a hollow threat they would not want tested in court so as to keep up the illusion that they 'may' in the future report loans.

halfpricedebt

My loans were for 97,98,99 so what terms do I fall under?

Where is the s16 item people keep mentioning? I'd like to read that.