Student Loans Company WRONG INTEREST

needtogetclear

just had a letter from the students loans company saying that a company called Erudio loans is taking over. Also, that they may have sent out correspondence that could have been interpreted as not having been fully compliant with the consumer credit act 1974, as amended in 2006 as well as certain regulations which came into effect in 2008. They apologize and have reduced my balance by some £50.00.

What is all that about ?

Do I have the options to claim back anymore ?

It's ridiculous..........

What shall I do next ? These loans should be written off..... it's a bo bo on their side.

JasX

It's always amusing to see someone with no idea that they had been affected by something in an insignificant way which they do not understand even after having it explained but they are still outraged by the fact it happened and are demanding compensation.

fermi

This is the reason why as far as I can determine:

http://www.parliament.uk/documents/commons-vote-office/February_2014/13 February/1-BIS-StudentLoans.pdf

Late on in the sale and migration process, a potential issue was identified with some of the arrears correspondence that had previously been issued by SLC to a proportion of MS loan borrowers. These letters could be interpreted as having not been fully compliant with the Consumer Credit Act (CCA) 1974 (as amended in 2008) and associated secondary legislation.

Although borrowers are not thought to have been disadvantaged as a result, the decision has been taken to adjust the balance of the affected loans.

Erudio Student Loans Ltd. will remove any loan interest and/or charges paid by the affected borrowers from the time that they first received such a letter. Borrowers need take no action and all affected borrowers will be informed as part of migration.

This is almost identical in principle it seems as:

http://www.moneysavingexpert.com/news/banking/2014/03/lenders-to-repay-149m-after-paperwork-blunders-discovered

These refunds DO NOT mean your original loan agreement was invalid or unenforceable now due to this.

The issue is with letters and notices, post contract, that have to be sent out under the CCA, not an error in the contact itself.

The error in sending out the letters or notices meant that for a certain period some loans should not have had interest or charges applied for the period during which the correct notices were not sent out. During that same period the agreement would not have been enforceable in court.

The above was temporary, and when the correct notices were again sent out they could legitimately apply charges and interest again from the date they send the correct ones out, and it would again be enforceable by a court.

So the adjustment is simply a refund for the temporary period when , under a technicality, they should not have applied interest and charges.