ERUDIO student loans help

CakeCrusader

Erudio Student Loans and Capquest are both owned by the same company (google Erudio Student Loans and look at Wiki)
"Erudio Student Loans is a consortium formed by debt collectors Arrow Global and private equity firm CarVal Investors in 2013."

Look at capquest's home page at the bottom;
"Capquest Investments Limited is registered in England and Wales with company number 05245825. Its registered office is at Belvedere, 12 Booth Street, Manchester M2 4AW. Your account is administered by Arrow Global Limited (“AGL”) for Capquest Investments Limited (“CIL”). AGL is part of the Arrow Global Group (and has the same registered office as CIL). AGL is part of the Arrow Global Group and is authorised and regulated by the Financial Conduct Authority for certain credit-related regulated activities. AGL is registered on the Financial Services Register under registration number 718754. AGL is registered in England and Wales with company number 05606545.

You don't need to write to ask them why it was transferred, it's the same company. They are just debt collectors who've bought old student loans from the Government for pennies. Hope this helps!

plong979

capquest won't send a pack. they don't have one. so what's the point in getting involved in letter tennis. I send a letter then they reply back with a standard reply. They don't care. They lied about sending an earlier letter so what's the point. I am not getting involved in letter tennis.

If i write to erudio they will just say they've passed it on and all communication should be with crapquest.

3 long years this has been going on for and the government FOS and FCA don't care. I am so sick and bored of it.

Brooker_Dave

plong979 wrote: »

capquest won't send a pack. they don't have one. so what's the point in getting involved in letter tennis. I send a letter then they reply back with a standard reply. They don't care. They lied about sending an earlier letter so what's the point. I am not getting involved in letter tennis.

Because if it goes to court, you look like you've made an effort, and Arrow just look like they've ****ed you about.

Provided you keep up your side of the agreement, and they don't - you have a really strong defense from these shameless parasites.

plong979

I am going to keep my side by sending evidence before my deferment.

CakeCrusader

I received a letter this morning;

"Our findings show that your account is statute barred... We will now close your account on our system and the balance will no longer be due. You will receive no further contact from us in relation to this account."

Not bad going, I only emailed them on Tuesday!

anna2007

CakeCrusader wrote: »

I received a letter this morning;

"Our findings show that your account is statute barred... We will now close your account on our system and the balance will no longer be due. You will receive no further contact from us in relation to this account."

Not bad going, I only emailed them on Tuesday!

Keep in mind that Erudio/Arrow Global are in this for the long game. There’s a section in the sale and purchase agreement on ‘potentially statute-barred debt’ that has been redacted – if they have to hide it, it’s a given that they have plans for these debts.

There’s some good guidance here on statute barred debt. I didn’t know that Scottish debts are extinguished, which might explain the careful wording in the SPA in relation to the Scottish loans. Also, this:

“The Financial Conduct Authority (FCA) say that it’s not fair for a creditor to keep asking you to pay a statute-barred or extinguished debt if you’ve told them you don’t intend to pay it.

This means for debts which are regulated by the FCA, once you’ve shown the limitation period has passed and told them you won’t be paying the debt, they should stop contacting you”.

Erudio is now exempt from FCA regulation, so no longer regulated – does that mean it’s ok for ‘Erudio’ to keep hounding statute-barred debt? Erudio’s nothing more than a legal entity, it’s Arrow Global’s job to do the nasty DCA stuff, it carries out the ‘regulated functions’. So if Arrow Global rears its ugly head later on, take Arrow Global to FOS – there’s a relevant FOS decision here – in typical FOS fashion they don’t rule on the legal side of it, but did decide it was unfair for Arrow Global to chase a statute-barred debt.

On the SPA/redactions, the FOI appeal has only just reached the stage where the Information Tribunal should be holding the hearing in the next few weeks, so it’s taken more than two years to get there since the request was made, democracy in slow-mo action!

CakeCrusader

Thank you anna2007. I'm hoping they crawl back under their rock, but I'm not expecting them to go quietly. I can't remember how much the loan was for and the paperwork is long gone, but it certainly wasn't 7.5k. The Student Loan Company knew where I was, I lived in the same house for 9 years, they just couldn't be bothered to chase it up. According to the link (and because the SLC are based in Scotland), this applies; "If the creditor waits too long, the debt will become extinguished. Once a debt is extinguished, the law says it no longer exists so there’s nothing more the creditor can do collect it."

Brooker_Dave

anna2007 wrote: »

Erudio is now exempt from FCA regulation, so no longer regulated – does that mean it’s ok for ‘Erudio’ to keep hounding statute-barred debt?

But surely we were sold our loans on the basis that the agreement would be stuck to, which is not happening, and that we were dealing with a regulated provider?

All the more evidence that we were mis-sold these loans.

How can Erudio just not bother with regulation?

Mr_McGuffin

This is the situation as I understand it.

When the loans were sold to Erudio in November 2013 BIS stated:

‘Erudio Student Loans will have to adhere to strict Office of Fair Trading (OFT) guidance about the treatment of borrowers’

Of course, BIS knew then that the OFT would soon cease to exist, and its regulatory function relating to consumer credit businesses would pass to the new Financial Conduct Authority (FCA) in April 2014. A two year window of a new ‘interim permission’ regime would then open until April 2016, during which time consumer credit businesses could operate without full FCA authorisation. Borrowers received a Notice of Assignment for the transfer of loans to Erudio in March 2014.

After April 2014, any entity wishing to carry out regulated consumer credit activities as defined by the Financial Services and Markets Act 2000 would have to apply for full authorisation from the FCA by the end of the ‘interim permission’ period in 2016, or be otherwise exempt from regulation.

Erudio Student Loans Limited was established as a ‘special purpose vehicle’ or SPV. The Financial Services and Markets Act 2000 (Consumer Credit) (Miscellaneous Provisions) (No. 2) Order 2014 SI 2014/506 came into force on 1 April 2014. This Treasury Order confirmed the exemption of special purpose vehicles from regulation by the FCA, provided that any regulated agreement was administered by an authorised entity. This means that as an SPV, Erudio Student Loans Limited could itself be exempted from regulation by the FCA.

The actual administration of the loans would have to be carried out by some other authorised entity, such as Capita, for the first couple of years of the ‘interim permission’ period when full FCA authorisation was not required, followed by Capquest, or Arrow Global, or whatever ‘person’ does have FCA authorisation and has an agreement with the SPV Erudio to adminster the loans.

Erudio Student Loans Limited had two years in which to operate before it would require FCA authorisation. However in any case it would never need to obtain this, because as an SPV it would itself be exempt from regulation by the FCA.

Brooker_Dave

Were these loans not sold to us as a regulated product though?