ERUDIO student loans help

Jonez

Yes - I noticed the 'responsible lender' comment too. Stating the blooming obvious here, I suppose the big problem with Erudio is that it's being run along the same lines as Arrow Global, whose primary business is purchasing defaulted debt - they (Erudio) don't seem to understand the difference between defaulted and deferred and probably never will, as it's not in their interest to do so. Someone in government must have seen this situation arising prior to the sale?

rizla_king

erudioed wrote: »

Well, i found out who Georgina Hayes is, taken from Arrow Global Guernsey Holdings website:

Another lying debt collector then.

No surprise.

erudioed

Well, the more they use such terminology to "allow" themselves to do so as a justification for reporting us to CRAs, the more it may be helpful if they are taken to task over this most conscientious issue. They do struggle to justify reporting to CRAs, especially as it is always mentioned that SLC did not report deferers. This makes Arrow look bad because it is clearly enforcing their powers to the maximum, whilst totally annihilating the 'treating customers fairly' part of all their talk, whether specifically in relation to us and Erudio, via their website for Arrow alone, or the loan agreement made with BIS. Treating customers fairly, although previously pointed out is nothing that will stand up in court, is part of the argument that will help take them to task with the ombudsman.
It is clearly in their interest to report us for some reason yet stated in public (hence their responsible lending argument etc), especially when one considers that rather mysterious agreement they made with Experian that i highlighted a few days ago concerning the Experian Collection Network that Arrow pay for, created and control! They even took the idea to Experian for christs sake. I think this is a money stream in some way, or information trading, which considering this is info we provided to our Government of the day, may very well be rather bad form. They will do anything to go ahead with passing our info over but they are just waiting for the right time, especially with all the negative press they are continually getting (well, i say negative, but maybe i mean being in the public eye and always seeming to be defending themselves). But one day, maybe soon, or maybe in XX months, they will be passing that loan info over to CRAs...unless we can find an argument to stop them or make it bad form to do so.
I wonder if BIS know about the Experian Collection Network, or in fact anyone else reporting on this issue and CRAs. I have never seen it mentioned anywhere else yet...

GirlGeek

Just listened to the much better programme on BBC4.
Three things occur to me:
1: Should we start to complain to SLC as well? I was told yesterday that if Erudio tell you you'll get a new deferment pack it will come via SLC. If SLC see that you're in deferment they won't send you a pack because they know you don't need one. Someone at SLC should be passing that info back to Erudio or Erudio should be asking, knowing this can happen. Fail.

2: Hearing from 'the Erudio woman' that their investing in 'customer training' rather than customer service training is telling and not surprising knowing how they treat their 'customers', I am sure they would rather we behaved more to their liking (I am not their customer, I would never have signed up with them, I've been lumbered with this shower). Fail.

3: How have the government got away with selling off these loans at such a loss?!! I can only assume that the general populace on hearing 'student' don't listen?! Gigantic fail!!

Forever

I've just listened to it too, and I completely agree that it explained some of our problems heaps better this time.

I am glad Georgina, the representative for Erudio, admitted that they have had problems with their customer service because let's face it, they are absolutely terrible. Yet, we have to deal with them!

They also admitted that they have made some errors too which again, is a good result.

Let's see if they can get it right now. Although, I'm not going to hold my breath.

As for some of the other issues, I think these are problem areas:

a) It's in our original contract that they can contact CRAs.

But this gets nasty when they can use it as a form of threat for us to pay up - even if they are getting it wrong. And we all carry this fear when we are dealing with Erudio too.

It's also nasty that we are getting this black mark on our credit files when we defer, when there hasn't been anything so far.

These combined doesn't leave me with warm fuzzy feelings towards Erudio! Especially as they paid a fraction of the price for our loans anyway.

b) It's in our original contract that they can include benefits such as child benefit. Only, this isn't ethical because this type of benefit is for children. Not for adults to repay their student loans.

Overall, I personally hope future generations who went/go to university never end up in Erudio's hands.

Forever

I've just received a letter from Erudio regarding my complaint. They partially withheld my complaint as follows:

a) The invasive form - rejected because they need this information to confirm our income (Hmm....)

b) Change of terms and conditions - rejected because they don't feel they have changed the terms and conditions.

c) Taking money from my account with no warning and when my deferment was still being processed - accepted.

They have also promised they will not take any further money from my account during the deferment period. This is slightly reassuring.

d) Listing my details with CRAs - rejected because they feel this supports responsible lending. Disclosing this information has been agreed with the Information Commissioner's Office too, and is in accordance with my contract made in 1996

e) Poor customer service - accepted and they have give me a small amount to cover additional costs, the inconvenience, and for an amicable resolution.

My verdict: It's the best I could have hoped for, I am genuinely happy that they have apologised to me, and they have given me a token amount to cover costs incurred, the inconvenience, stress etc.

aloadoflatchikos

When they say" we feel that the terms and conditions have not changed", Erudio are once again interpreting and changing the T&C. in other words setting new precedents, since they are stating a matter of opinion not a fact, hence why they use the word "feel". One more example of 1984 newspeak.

Jonez

Surely any 'precedents' set by them aren't enforceable simply because they state something to be true according to their interpretation of the contract? I suppose at some time, court action by / against Erudio will result in some actual legal precedents being established. Could be a long wait though. It would be good to get a lawyer to look through the original SLC contracts and see if and where Erudio are in breach. That takes money though - the very thing that all of us interested in the lawyer's opinion don't have.

Forever

aloadoflatchikos wrote: »

When they say" we feel that the terms and conditions have not changed", Erudio are once again interpreting and changing the T&C. in other words setting new precedents, since they are stating a matter of opinion not a fact, hence why they use the word "feel". One more example of 1984 newspeak.

Sorry, "we feel that the terms and conditions have not changed" is my wording not theirs.

Erudio says in its letter that:

"...The information we are asking for will help us to confirm borrowers' current gross income and determine their likely gross income over the next three months in order to satisfy the conditions of deferment. This change in approach does not constitute a change to the terms and conditions of the loan as prescribed in the Education (Student Loans) Regulations 1998. The method of the deferment process is not specified in those terms and regulations."

Expanding on the above, I feel that it is stating that their approach to deferrals is within the law - even if it is invasive, time consuming, stressful, and so on. They are a private debt company and so want to make money. Therefore, they are going to try and find anyway they can to get money out of us.

Unfortunately, our original contracts doesn't protect us from this.

The part about the CRAs were dealt with in a separate paragraph. It looks like I cannot do anything about this either (big sigh). This is because I did sign a contract, all those years ago, saying that my details may be passed on to CRAs. So, although the Student Loans Company didn't bother if you were deferring, Erudio will do so. From what I understand, sharing this information is good business for Erudio.

So I have to suck it up that Erudio will have a detrimental affect on my credit record too.

I only wish the government had asked me if I wanted to pay off my student loan at a fraction of the price. I would have paid it off!

Forever

Jonez wrote: »

Surely any 'precedents' set by them aren't enforceable simply because they state something to be true according to their interpretation of the contract? I suppose at some time, court action by / against Erudio will result in some actual legal precedents being established. Could be a long wait though. It would be good to get a lawyer to look through the original SLC contracts and see if and where Erudio are in breach. That takes money though - the very thing that all of us interested in the lawyer's opinion don't have.

Yes, I completely agree. I really wish there was a lawyer to check all the terms and conditions.