ERUDIO student loans help

erudioed

@tyfighter That agreed amount was what you would pay if you earned over the deferment threshold, so takes a rather large income into account. The credit rating threat is the only weapon they have in their armory to get you to pay.

Of interest, the following Utilities and Telecoms Conference (18.09.14 Chesford Grange, Warwickshire: A vital credit and collections update for utilities and telecoms operators) sees our beloved Zach Lewy's compassionate side, aiming to understand the problems those in debt face so that companies like his can understand our problems and then use every tool they have to get us to pay them! Here is the list of subjects Lewy will be waxing lyrical about:


15:50 Treating customers fairly, understanding motivations and overcoming barriers to engagement in the B2C and B2B C, T & U

• Understanding what actions of creditors impact engagement / disengagement of customers
• Common barriers to engagement with creditors: physical, psychological and financial
• Practical, concrete and commercially tested steps that creditors are taking
• The role of mental health in collections and customer engagement
• The skills and qualities consumers value when contacted by creditors

Lisa Connell, customer manager – collections, Northumbrian Water
Nicola Connop, business debtline team manager, Money Advice Trust
Liz Dunscombe, head of adult and industry programmes, The Money Charity
Chris Fitch, research fellow, Royal College of Psychiatrists
Zach Lewy, founder and executive director, Arrow Global
Mike O’Connor, chief executive officer, StepChange Debt Charity
Ruth Ratcliffe, contact centre manager, British Gas
Amanda Scovell, cash and debt manager, Thames Water

Forever

My MP (I can't praise him enough!) contacted The Rt Hon David Willets MP regarding Erudio.

If you don't already know, David Willets MP is the minister for universities and science, and his letter is written on the Department for Business Innovation & Skills letter headed paper.

David Willets MP has now replied. It is a long letter but the main bits are:

"[Erudio's] offer was judged to present the best value for money for the taxpayer and the price paid exceeds the estimated value to the Government of retaining the loans.

MS student loans are regulated loans under the Consumer Credit Act 1974 (as amended)... and borrowers have exactly the same rights and obligations as they had when their loans were managed by the Student Loans Company.

The terms and conditions relating to the deferment of MS loans are prescribed in the Education (Student Loans) Regulations 1998 and in borrowers' loan credit agreements....

Erudio has adopted a different approach to the deferment application process... the information they are asking for is to help them 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... the deferment process is not specified in those terms and conditions.

Erudio is regulated by the Financial Conduct Authority (FCA) for accounts formed under the Consumer Credit Act 1974 (as amended). Erudio must operate in accordance with the terms and conditions specified in borrowers' loan credit agreements and relevant regulatory requirements and industry guidance, which include particular protections for vulnerable borrowers and those in financial difficulty.

Erudio is continuing to make improvements to its customer services operations, including the deferment application process, to ensure that borrowers receive the quality of service they expect.

[paragraph regarding Erudio's complaint process and about contacting the FOS]

[my name] also raises concerns about the use of 0845 telephone numbers, my officials have contacted Erudio who have advised that they are considering switching to 0300 numbers, in line with the direction of travel for public sector organisations.

However, they do have a standard geographic rate.... 0113 318 9010, and is shown on their website."

ericctheking

Forever wrote: »

David Willets MP has now replied.
Erudio has adopted a different approach to the deferment application process... the information they are asking for is to help them 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... the deferment process is not specified in those terms and conditions.
[/I]

Seems like they have said to Arrow behind closed doors, don't worry you can get your money by making a convoluted deferment process and waste everyone's time and stress them out so they give in and pay you even when they can't afford it! Then you can funnel that money to Guernsey, care for other cigar old chap!

But seriously, the deferment process needs to be run by an independent third party, not like this where there are blatant conflicts of interest. It is in Arrow's interest to "lose" deferment forms, evidence etc. on purpose and to make the process as convoluted as possible (ie. asking for irrelevant evidence. etc)

There has been a blatant, nudge and wink to Arrow regarding these loans.

Does anyone know legally regarding terms and conditions and interpretations of them if precedent has any bearing?
After all the original contract would need to be thousands of pages long to cover all possible interpretations of the terms and conditions.
Take gross income for example that can be interpreted in many different ways. What about paid expenses for your job? child benefit etc. If you are a housewife or husband you have zero income usually so how can they challenge people on that?

ericctheking

In the original terms and conditions it talks about gross income.

Why don't all former students ignore their child benefit when deferring, because unless you earn over 50,000 a year it is untaxable so by most definitions this is not gross income.

Even if the SLC took things like this into account (which i don't think they did?)

People can say

"This change in approach does not constitute a change to the terms and conditions of the loan...child benefit etc. is not specified in those terms and conditions."

just quoting s**t for two brains David there!!!!!

Forever

I think the truth is that Arrow is exploiting a contact loop hole with their nightmare deferment process. As Dave Willets says in his letter, this process wasn't previously specified.

I think the answer lies in looking at the supporting laws and regulations, as well as our original contracts. We can then try to work out what they can, or cannot, get away with.

We can also try to gain support from MPs, the financial ombudsman, and any other person who may help.

Jonez

What's the likelihood of some sort of class action taking place? It's still quite early days in terms of Erudio's ownership of the loans, so I suppose getting a case together would take quite some time, allowing for evidence to be gathered etc. and identifying exactly what they are doing that represents breach of contract.

From the start, I have thought that their basic problem is treating deferred loans in the same way as their parent companies treat defaulted debt - they simply see the two as the same, irrespective of what the relevant legislation states.

StressedHubby

I received a phone call form Erudio today to inform me that I was two months in arrears. When I explained that I hadn't even been informed that I was one month in arrears, nor that my deferment had been unsuccessful I was met with..........SILENCE!

I was then asked why I hadn't provided any information on the benefits we get.... I respond by asking them to clarify that the information had yet again gone missing from their system. Miraculously, the very same information appeared on the system with a couple of mouse clicks.

I was then asked to supply my SA302 or tax return. I told them I was happy to do so once they explained to me how legally they are allowed to see it when I have already provided them with my accounts as prepared by my accountant. I was told that they had to see my self employed income stated on an official HMRC form....... I told them to look at my Tax Credits award notice as it has on the relevant information. I was then told this wasn't acceptable but they had accepted my employed income. When I started laughing, they gent on the other end of the phone asked why I was laughing to which I replied that I had provided NO evidence of my employed income other than the Tax Credits letter and was confused as to how they could accept that for my employed income and not my self employed income.... Another deafening silence.....

I also asked why deferment had been unsuccessful only to be informed that my deferment had been inactive for some time and was therefore denied. When I asked how they could class it as inactive when I was waiting for a response from them to a letter I wrote them in April I was given the run around for 10 minutes but no real answer.

Unfortunately my mobile signal dropped out (I was driving and yes, I was using a hands free kit!!) and they still haven't rung me back.

Now I'm through getting wound up and have decided to go to a debt advice service to get them to speak to erudio on my behalf. I am unwilling to deal with these people myself when they cannot be bothered to actually tell the truth and don't explain themselves adequately. I think it will be interesting to see how they deal with an outside agency.......

Somebody1_2

Can anyone please advise about how to calculate rental income for these people? I am stuck. My bank statement and tenancy agreement, which they ask for, do not show any expenses taken off. Do I have to include all evidence of expenses eg on headed paper from agents, insurance, mortgage company etc. They would end up with a lot of info about me and tenant if so. I have not needed to do tax return yet. Has this come up before? Or anyone have experience?

Princess_Jane

Anyone having problems getting a deferral form out of these jokers?

Normally by this time of year I would be fully deferred on my student loan, but I haven't even got my form yet.

Apparently it's "been sent" and if it does get past the referral date, payments will be taken but then refunded once the deferment is processed.

I don't believe a word of it.

rizla_king

Complain and tell them to put them in the post first class today otherwise you will be taking them to the FOS for their delaying tactics. Also tell them that they won't need to refund any payments wrongly taken due to them not getting their !!!!!! into gear so you can defer on time, as you will be claiming back any payments immediately under the direct debit guarentee.