ERUDIO student loans help

calise

My loans are pre 1997 They are 1993 and 1994. Maybe because I don't have long left before the loans are written off?

eroneo wrote: »

Thanks for the info. A small sample is not a lot to go on but it's sad to hear confirmation that your crossing out was ignored. I wonder why they are credit checking som people but not others?

@Halfpricedebt & @Calise

Loans taken for academic year starting in 1997 are either on the new type of agreement post 1998 (disclosure clause 12) or the older type (clause 16) pre-1998.

It depends how late you took the loans but some borrowers have only the new type where they can disclose your data to CRAs only if you are breaking the agreement.

Do you know which type you have?

Has anyone had a credit check when all their loans are on the post 98 type of agreement who has crossed out the consent on the DAF?

halfpricedebt

Maybe it is to do with when you took the loans out. Mine were 97,98,99 so it could be yours have are subject to different regulations?

eroneo

halfpricedebt wrote: »

Maybe it is to do with when you took the loans out. Mine were 97,98,99 so it could be yours have are subject to different regulations?

when you took the loan determines what terms and conditions there are in the loan agreement. Anything before 97 are on the old type but some of the 97 ones are on the new type if you applied late because they changed half way through the year.

Pluthero

Calise

You should put in a complaint to the FOS AND FCA.
Erudio have admitted in an fos decision that credit checks are not part of the original loan conditions.

Lungboy

I've finally found time to redraft my letter to Erudio. Any final suggestions before I send it?

Dear Sir/Madam,

I have 6 loans (ref. no.s: ), originally taken out with the SLC and now owned by Erudio. I have been paying them back having been earning over the threshold for deferment. However, my contract changed in January and I have now been under the deferment threshold for the last 3 months. As such, I am writing to you to defer my loans under section 9 of the 1998 regulations which state:

"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 -
a. The lender has not already asked him to repay the loan in full, and
b. He can show -
(i) that his gross income for the relevant month is not more than the deferment level, and
(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.”

Requirement a is clearly satisfied, as you have never asked me to repay the loan in full. To satisfy requirement b, to show the relevant financial paperwork, I have included 3 months’ worth of payslips including that of the relevant month (April) to prove that I am now earning under the deferment threshold. They show my gross pay to be £xxxx per month. I have also included 4 bank statements to show the amount of interest I am earning each month. The x account is tax free earning. The x account also shows gross but has been taxed. The 2 x accounts show net. That makes the full gross income from interest £x per month on average over the last 3 months, and therefore my total gross monthly income is £x, well below the threshold of £2227.25.

I have not included a DAF as it is not necessary to do so to meet requirement b, to show you that I am beneath the deferment threshold. Nothing in section 9 of the 1998 regulations says that a DAF is required. Furthermore, the DAF asks me to allow you to search my credit file and share my details with CRAs, which I refuse to do, and it asks for personal information which is not required for me to show you that I satisfy section 9. Finally, it asks me to consent to conditions which are not included in hard copy with the DAF, but are instead on a website that can be changed at any time. For these reasons, as stated, I have not completed a DAF and will not be doing so.

I declare that all information given is correct to the best of my knowledge, and no relevant source of income has been omitted. As such I fulfil the conditions for deferment as I have shown that I earn below the deferment threshold and I look forward to your confirmation of my deferment. All provided evidence for my deferment, including a copy of this letter, has also been sent to you via email to prevent it being lost in the post.

Yours faithfully,

fermi

Are you prepared to go to court if required, should they refuse?

Lungboy

Yes. There's nothing they can do to impact me anyway. I can cover the loan if they demand full repayment, and I'm not going to be needing credit in the next 6 years if I default and they report it.

eroneo

@lungboy.

You only need to provide proof for the 'relevant month' which is the month before the month you wish to defer. You must declare what you expect your income to be for the three months following the relevant month and provide what evidence you may have.

Might be worth putting a declaration at the bottom you sign certiying it is truthfull similar in wording to the bit at the bottom of
the SLC forms.

If they take money from you then you can claim it back. If you don't pay them, you might not be allowed to use small claims.

If you have nothing to lose go for it.

Bullies are cowards if you stand up to them.

In the end, you are in the right and anything they do can be undone if you are prepared to go all the way.

Any more folks been credit checked?

Lungboy

Yeah, I know it's only for the relevant month but SLC always asked for the previous 3 months so I thought I'd stick to what they used to accept.

Pluthero

Lungboy wrote: »

I've finally found time to redraft my letter to Erudio. Any final suggestions before I send it?

Dear Sir/Madam,

I have 6 loans (ref. no.s: ), originally taken out with the SLC and now owned by Erudio. I have been paying them back having been earning over the threshold for deferment. However, my contract changed in January and I have now been under the deferment threshold for the last 3 months. As such, I am writing to you to defer my loans under section 9 of the 1998 regulations which state:

"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 -
a. The lender has not already asked him to repay the loan in full, and
b. He can show -
(i) that his gross income for the relevant month is not more than the deferment level, and
(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.”

Requirement a is clearly satisfied, as you have never asked me to repay the loan in full. To satisfy requirement b, to show the relevant financial paperwork, I have included 3 months’ worth of payslips including that of the relevant month (April) to prove that I am now earning under the deferment threshold. They show my gross pay to be £xxxx per month. I have also included 4 bank statements to show the amount of interest I am earning each month. The x account is tax free earning. The x account also shows gross but has been taxed. The 2 x accounts show net. That makes the full gross income from interest £x per month on average over the last 3 months, and therefore my total gross monthly income is £x, well below the threshold of £2227.25.

I have not included a DAF as it is not necessary to do so to meet requirement b, to show you that I am beneath the deferment threshold. Nothing in section 9 of the 1998 regulations says that a DAF is required. Furthermore, the DAF asks me to allow you to search my credit file and share my details with CRAs, which I refuse to do, and it asks for personal information which is not required for me to show you that I satisfy section 9. Finally, it asks me to consent to conditions which are not included in hard copy with the DAF, but are instead on a website that can be changed at any time. For these reasons, as stated, I have not completed a DAF and will not be doing so.

I declare that all information given is correct to the best of my knowledge, and no relevant source of income has been omitted. As such I fulfil the conditions for deferment as I have shown that I earn below the deferment threshold and I look forward to your confirmation of my deferment. All provided evidence for my deferment, including a copy of this letter, has also been sent to you via email to prevent it being lost in the post.

Yours faithfully,

Erudio will not defer you. They will not enter into any discussion about your bespoke letter/income proof being an acceptable alturnative to a DAF. They will Simply fob you off with 'Complete our DAF' and quote or indeed MIS quote the LOAN REGS : and then go to the FOS if you are unhappy. And we have seen how useless the FOS is! Its like an establishment cover up:)

But good luck and copy all your concerns and issues into a an email to the FCA. Only the FCA will actually sanction these chancers.