Deferment letter received from SLC but Erudio say they have nothing on file

Andyvas

Hi everyone,

I've read numerous posts on here & elsewhere regarding the Erudio fiasco, but haven't found anyone mentioning the situation I am in, and was wondering if anyone had any advice?

My 3 loans from '97, '98 & '99 have always been deferred due to having constantly earned well under the threshold. The loans from '97 & '98 were sold to Honours Student Loans several years ago & I have always just sent deferment forms / payslips to SLC who have processed everything for all the 3 loans.

My current deferment ends 25th April 2014 & I received forms from SLC sometime in Feb (as is usual each year), and completed / returned them. I subsequently got a letter from them clearly confirming that the 2 loans administered by Honours Student Loans and the one loan administered by Erudio Student Loans Ltd were all accepted for deferment until 25th April 2015 (this was the first mention of Erudio that I have seen, although tbh I was more interested in seeing that the loans were deferred than anything else).

Couple of days later I got a DD confirmation letter from Erudio which stated payment would start 25th April 2014 (I've always had the DD set up with SLC as I believe this was a requirement of the deal, and assume therefore that SLC had provided this info to them). I rang Erudio & the guy said to try again in a week or so, in case letters had just "crossed in the post". A couple of days later I received an info pack from SLC containing the "Notice of Assignment" and other docs / info which informed me that my '99 loan was now owned by this company called "Erudio".

I rang Erudio again this Monday & after speaking to someone who clearly couldn't grasp what I was telling her, I was told that I needed to speak to SLC as Erudio had no details of any deferment after the current period ends this April. Spoke to SLC who said they couldn't help - ALL details had been sent to Erudio & SLC had no access to the loans details anymore. She also said that they had received loads of calls from people being told by Erudio that they needed to contact SLC - she implied that Erudio clearly hadn't been trained / didn't know what they were doing.

I emailed a copy of the deferment acceptance letter I'd received to Erudio on Tuesday & explained the situation & the conversations that I'd had. I also followed this with a hard-copy via post on Wednesday, including a copy of the above email, both times asking for a prompt response due to the closeness to the payment due date.

As expected I've heard nothing. The girl I originally spoke to was going to send a deferment form a.s.a.p but after subsequently reading the T & Cs concerns I do not plan on signing this (it hasn't turned up anyway!).

I'm sure they'll take monies next Friday (25th) even though they are not entitled to, but I'm also wary of cancelling my DD & giving rise to "breaching conditions" etc & enabling them to claim full immediate payment.

I'm sure I can't be the only person in this situation where the deferment process was started before Erudio took over? As far as I am concerned, I have it in "black & white" that ALL my loans are in deferment until 24th April 2015. However, living alone with a salary of £14K & no other source of income, I call ill afford for them to be taking cash as they choose, even if I do fight & get it refunded at a later date.

Any advice greatly appreciated!!

ericctheking

If it were me I'd cancel the DD. I think it is a red herring.
There seems to be so many people with troubles, I would just hold tight.
You have the evidence the loans are deferred! You sent them evidence. (and more importantly you have proof) You have done everything reasonably possible.
If they want to say you are in breach of agreement for canceling a DD when you are deferred let them. I really can not see how a judge can make anyone pay who is under the threshold when you have proof.
They are just really bullies and that is how they make money. Scaring people saying they will refuse deferral if they don't sign their ridiculous forms.
SORRY ERUDIO, UNDER THE THRESHOLD NO MONEY FOR YOU! NOW EXPLAIN TO YOUR AMERICAN OVERLORDS HOW YOU MADE A BAD INVESTMENT.

Mephistopheles666

In light of what users of Mumsnet have just pointed out, I would say you should definitely cancel the direct debit now. As your payment is due to be taken on 25th April and they have not even informed you of the amount to be taken (which it seems they have not done with anybody) they have already broken the Direct Debit Guarantee. If they claim that you have defaulted, they would not have a leg to stand on if they informed you they were going to take further action- just inform them of the rules governing direct debits.

I have never ever had a company take direct debits from me without having first informed me, usually well in advance (but always at least 10 working days) of money being taken. If you don't cancel, I would say that Screwdio will just be helping themselves, as this seems to be what they have done to several people already, even those who were informed by SLC that their deferment had been accepted just before the transfer to Screwdio took place.

Andyvas

Thanks for the comments.

Just to point out though, the DD confirmation letter from them did specify the amount and date, etc, basically just confirming the details SLC had already held. However they aren't due anything yet, whether they stated the intended amount or not!!

I've just fired off another email (again attaching the deferment acceptance letter) pointing out that they've not responded to my earlier correspondence & asking that they confirm a.s.a.p, & definitely before next Friday, that my account is in deferment.

Not expecting a response so am planning to cancel the DD just to be sure.

Good luck also to everyone else who is currently dealing with this lot......

Mephistopheles666

I'm surprised that they specified the amount to be taken from your account, as they have not done that with me, and I know of others who were not informed either. If they complain about me having cancelled the direct debit, I will be on solid ground when I inform them that they have not acted within the terms of the direct debit guarantee.

You are right that they should not be taking any money from you as you are eligible to defer, but they will probably try taking it anyway until they can be bothered to get your deferment processed.

rizla_king

http://www.independent.co.uk/money/loans-credit/erudio-student-loans-row-graduates-fear-company-will-pass-on-deferred-loans-details-9270219.html

For one Independent reader, it's been a nightmare. She had money taken from her account last week even though her loan is deferred.

When contacted by The Independent, Zachary Lewy, the founder of Erudio's owner, Arrow Global, stepped in. "Erudio has clearly mishandled your case," he said.

To apologise the firm has put £100 in our reader's account, but her fears remain, and she asks: "How many other former students have been unfairly hit by this company taking cash that it shouldn't?"

zlewy@arrowglobal.net