ERUDIO student loans help

fermi

In the end, no matter what fake spin Experian try to put on it, the only way to prevent it negatively affecting your credit file is to get a guarantee in writing from Erudio that it will not be placed as a partial settlement on your credit report.

Trusting or thinking they likely won't is not good enough.

Or obviously arrange some way to pay in full.

End of.

No 'ifs', 'buts' or 'maybes' can get around that fact.

fermi

halfpricedebt wrote: »

Ok, so here is my draft F&F letter. Feedback appreciated.

I write with reference to the money which you are claiming on the above account.

I can confirm that I am unable to pay the money which I owe in full. The current repayment rate is unaffordable on my salary which is just over the current deferment threshold. I do not have disposable income and repayments at £XXX a month for five years would be incredibly difficult to sustain without it having a significant impact on my other financial obligations. As you have stated that an income/expenditure form and agreed affordable payment would leave my account in arrears, I am unable to find an affordable way to pay you without creating further debt on the account.

However, due to an offer by a third party, I can raise 30% of the outstanding amount of £XXXX which would be a total of £XXXX and I want to offer this as an ex-gratia payment in full and final settlement of the account.

This offer is made on the clear understanding that, if accepted:

- Neither you nor any associate company will take any other action to enforce or pursue this debt in any way whatsoever and that I will be released from any liability.
- Nor will the amount left unpaid under the loan agreement be transferred or assigned to any other company or entity.
- If you decide to make an entry on my Credit Reference Agency files relating to the above account, then it should be marked as having been paid and the account closed.[
- If recorded as above the account will be marked as settled/satisfied without a partial flag.
- If recorded as above the balance will be marked as zero showing that nothing is left to be paid.

Payment can be made within a day of receiving your written agreement of this offer by bank transfer.

This offer is only made subject to agreement to the above terms being being received in writing, in advance of any payment.

I look forward to hearing from you.

Yours faithfully

OK. This is being super super picky, but if I was writing that letter myself I would perhaps make these small adjustments.

halfpricedebt

Thanks fermi

James gave me his email address. He said he would investigate further if I give him more details.

fermi

Or perhaps adjust to say that you want guarantees that nothing at all will be recorded on your credit reference files. Your call.

fermi

The_Junior1 wrote: »

New to all this so looking advice!
Fall into the category of earning over the threshold but unable to give amount requested to pay of debt. I called Erudio and completed the icome/expenditure form by phone and arranged agreed payment amount. On agreeing this I have received a letter stating the following;

please be aware that whilst your offer to make reduced payments has been accepted arrears will continue to accrue on my account and whilst in arrears your account will not be eligible for age related calculation. If your arrangement is maintained your account will be registered with an arrangement flag at the CRA BUT WILL NOT BE ACCEPTABLE FOR DEFAULT. "
I thought the old T&Cs came with the loan these being if you reached certain age or 25 years the debt is wiped clean!

Can someone in plain laymans tell me what exactly this means? I am considering getting a loan somewhere else just to get rid, so not sure what's my best option?!

It means that:

1 - arrears on the loans start to build up as your are not making the payments legally required under agreement.
2 - The arrears could (maybe) be marked on your credit report as such with an arrangement to pay marker. This would have a negative impact for 6 years from any future settlement.
3 - While in arrears you lose any right to have the loans written off after 25 years/age 50/60 etc.
4 - If you default on the arrangement they could default the agreement and call in the whole loan immediately.
5 - They could call it in anyway under the terms, as technically they can do that even if an arrangement is in place, as such informal arrangements are not binding.
6 - If they called in the loans in full you would lose any future right to defer or have them cancelled permanently.

1 - 3 are immediate consequences.

4 - 6 are something they could do if they chose, as a consequence of the arrears.

fermi

Also worth reading when Experian and other CRAs start telling how your file or score will be impacted.

---> what your 'credit score' really means

halfpricedebt

Interesting and all throws up a reminder of what the National Debtline specialist said to me - that all lenders take into consideration a potential borrower's circumstances. Even if they settled an account such as a student loan they may take into account why the borrower did that and assess on the reasons for it.

This also depends on the lender. Someone might give you a break, someone else may not.

Pluthero

fermi wrote: »

Cannot believe Erudio are still lying about which regulations apply.

I can totally believe it. They quote the wrong regulations and wrong deferment threshold!

I copied it into a fresh complaint to the FCA about Erudio sharp practices. I strongly urge everyone to do the same. No matter how small an issue, outright lies, deception, quoting utter guff or untrue guff. Just copy in a complaint to the FCA:

[EMAIL="consumer.queries@fca.org.uk"]consumer.queries@fca.org.uk[/EMAIL]

Only takes a moment.

Every complaint will have a cumulative effect.

halfpricedebt

I understood that the deferment threshold was set by BIS though? The deferment threshold has gone down before although not to the whopping £2k it's gone down this year.

fermi

halfpricedebt wrote: »

I understood that the deferment threshold was set by BIS though? The deferment threshold has gone down before although not to the whopping £2k it's gone down this year.

Until 1998 it used to be set every year in that year's update of the student loan regulations, not by BIS.

From 1998 onwards those regulations were changed so instead BIS decided and published it, based on ONS data for average earnings.

Erudio have been quoting the old defunct repealed 1997 regulations to people, where it still gives an old out of date very low and incorrect figure.