ERUDIO student loans help

Lungboy

I'd LOVE a $30m loan at 2%, where do i sign?

Lungboy

Sorry Rosales, alanspencer is offering at 2%.

Articmonkey

Sorry to post this on here but my own thread had no replies...


Something REALLY fishy going on with Erudio! Brexit? Folding?


My account went into arrears as I couldn't defer as I didn't know it had been sold 2014-15. Paid Erudio £100 a month (whilst in deferment) to pay off the arrears and then my income went over the deferment threshold so I have been paying the contractual amount (that they set) of £139.48 for 20 months. Today I received an aggressively worded letter from them terminating my account and demanding £3055.87 by 07/11/18 to pay off the arrears. The remaining balance is £3905.33. Citing 'You have broken the terms of your agreement because you failed to pay your repayments on time and in accordance with the terms of the agreement.'


All my repayments have been via direct debit and on time. I am 40 next year - I think this is a response to that as I think they are trying to ensure I do not get the loan wiped somehow.



I have just rang them too as I wanted to check that they hadn't made a mistake. Nope, they are terminating the contract. The man on the phone kept repeating that as I was in arrears I had broken terms of contract and they have made the decision to terminate my account. When I asked if they took me to court would any judge agree that I was not doing enough to settle my account by paying £140.00 he said 'We are not saying you are not doing enough'? So I asked how they propose to proceed given I don't have 3K to pay in 14 days and he said after they have terminated the account they would seek to 'continue to work with' me. When I asked why a monthly payment plan of £140 isn't considered as 'working with' me he said because that isn't paying off my arrears. I actually would be eligible for deferment now as my income is below the threshold this year...


This is extremely odd. I think they are gearing up for some further dodgy practice. Why would they terminate the account of someone who is already paying them monthly, on time and they are earning interest? Any ideas anyone? He wouldn't give me an answer when I asked what the proposal is after terminating my account. I am at the point now that I have a mortgage and a steady monthly income so I am tempted to cancel my DD and let them take me to court for the 3k. See how much a judge thinks I should pay them and deem that £140 a month isn't enough! Any ideas anyone?

erudioed

Sorry to say, this is just erudio and what they do. And the government agrees with the tactics they use so it seems.

You will have to make an official complaint with erudio immediately and tell them this will go all the way to the ombudsman, then go on to the ombudsman after erudio dismiss your concerns. I would start gathering your evidence now and making your case because erudio love using strong arm tactics to pressure people into making payments.
You need to overstate the transition of the loans and how you have gone out your way to act in good faith. Its another erudio nightmare.

Ibreakwindinerudiosdirect

@Arcticmonkey

That's indeed a bit !!!!.

The arrears that were accrued when the loan was sold I doubt would be looked on as a huge negative by any judge or jury. The move from the SLC to Erudio was an effing disaster. I know from my perspective that Erudio never informed me that the loans had been sold to them. The first I knew about it was having Erudio appear on my bank account nabbing money from me as my SLC deferral form was packed in a box somewhere courtesy of the move from SLC to Erudio.

Your first step is to write to Erudio and ask for all the usual. A complete copy of the contractual terms that you signed. Ask them to quote relevant sections of it to indicate where they feel you have broken the contract.

As you paid off the arrears and then proceeded to pay a repayment when above the threshold for nearly two years, that also reinforces the impression of you not being dodgy in any way.

When the reply from Erudio arrives, then you should lodge a complaint with the Financial Ombudsman. Now your account will be terminated by Erudio whilst this is going on with the FO. I suspect it will lead to two things: typical debt chasing tactics from Arrow Global that are tougher than they can do as Erudio and a string of offers to settle your account.

Certainly keep updating this thread as well. It does appear that Erudio are now getting a lot more hands on with trying to get some money back. Perhaps they've finally twigged how many of us are well under the threshold and will always be under the threshold until the end date.

Articmonkey

Thanks for the replies.

I spoke to national debtline and they advised that technically they can enforce.

They advised to look at the consumer credit act and the FOS fair treatment. Put an official claim in writing and try to challenge them why they didn't send a demand in full notice 2 years ago as technically they could have enforced when I failed to defer and arrears accrued. They said to really push that it was strange that they decided to issue a demand in full after 2 years of a repayment plan agreed by both parties. The 'trigger' seems to be my request to change the DD date to 1st of month, which I rang and asked about a couple of weeks ago and it was refused. I think this made my account flag up.

Also advised to check their default process carefully and check they've done it correctly.

I am currently buying a house and I'm praying the mortgage will go through before 7th November as I assume this will impact on my 'excellent' rating?

Lungboy

They've pulled some nonsense over changing DD dates before, trying to make out it was impossible or something. My memory is a bit hazy about it though.

ps I replied to your other thread

Articmonkey

I replied on my thread but I will put this on here too:


I have a friend who is in contract law and she is looking into whether they waived the right to call in and terminate when the agreed the repayments. They set the amounts and the dates etc. She seems to think when I started my contractual monthly repayments (when I went over the deferment threshold) we can argue that they entered into a new contact by accepting and setting the contractual payment amount and by not issuing a further default notice, they have not followed process as they have jumped straight to demand in full. She also thinks they would be hard pushed to get a judge to agree with them that I am not doing enough to settle my debt when I am not taking up the option to defer even though I am now under the threshold and I have maintained monthly repayments to a sum of £2236.59. She is also mentioning unfair treatment as they are refusing to give a reason.


I am tempted to offer to pay the balance of one loan at £1100 in order to get them to accept partial settlement and close the account. I'll have to take out a loan at work to do that though.

ElwoodBlues

Wow, I've had a letter from Erudio with a settlement offer of 50% of my loan value! Never saw that coming, but it looks like I'm not the only one? Mine are 10 years away from expiring, and I've deferred every year so far. I don't think it makes sense to settle at that price now, but then on the other hand, the thought of having to deal with Erudio for another 10 years makes it sound more appealing!

I might write back and offer to settle for 25% instead. :rotfl:

And I wonder if we settle, then they would try and put it on our credit file as a partially settled debt? I had a friend who came to a settlement agreement with a high street bank over a regular personal loan that was in arrears. The way they recorded it on her credit file meant she still had a negative credit record due to the loan.

Lungboy

Definitely worth a lowball counter offer. It could well be marked as partially settled, as that's true, but they don't seem to report to CRAs even after threatening they would.