Erudio Fair Processing Note for 1998-2002 loans and sharing deferment status

fermi

Erudio Student Loans are sending out a fair processing note/form to students with 1998-2002 mortgage style loans.

(Please note 1990 - 1997 loans have different terms and conditions, so all of this does not apply.)

These seek consent to share data with the credit reference agencies on up to date payments on those loans. If you do not give that consent then they cannot do this it would seen.

However, importantly they also state before they get to that part that they WILL report accounts to the credit reference agencies if you defer in the future.

This is a straight statement and does not seem to form part of the consent described and asked for later in the notice.

In other words, taken on face value, they will do that whether you sign and return the form or not?

This is in direct contradiction with the original terms of the loans 1998-2002 loans which say:

12 Disclosure of information

You agree that we may process the information we hold about you (including contact names given on your application form) on computer or in any other way and use it for credit assessment and statistical analysis, including behaviour and credit scoring.

We agree that we will not give or show confidential information to anyone else for marketing purposes but you agree that we may give confidential information about you in the following cases:

(a) for fraud prevention purposes;
(b) if you have broken this agreement, to licensed credit reference agencies (who may make such information available to other lenders assessing credit application from you and other members of your household);
(c) under a strict duty of secrecy to sub-contractors or persons acting as our agents;
(d) to any person to whom we may transfer or assign our rights under this Agreement;
(e) if we have a right or duty to disclose or are compelled to do so by law.

i.e. they can only be reported if you have broken the agreement.

Clearly only in case of you breaking the agreement can these loans be reported. Deferment is not breaking the agreement.

However, Erudio seem to be saying they intend to report any future deferment, whether you agree to it or not?

In other words, it seems that they intend to break the original loan terms and conditions and report deferred accounts anyway.

Extract from the fair processing note is below.

(1) Shows what they say they will report anyway.

(2) Shows what they say they will report IF you consent.

fermi

Maybe they have just messed up with the way they designed or worded that form?

ManicMonday

Luckily my loan was deferred just before the takeover but I'm watching all this with a sinking heart.

I have been sent a copy of the Fair Processing Notice which they have asked me to sign and return. Do we have to sign this? Are we in breach if we don't?

fermi

As is says it the above, signing and returning the notice that comes with the assignment is optional. You are not in breach if you decide not to.

ManicMonday

Thanks. Forgive my not seeing the info, I'm panicking a bit at the moment (as are many people I'm sure!)

fermi

I would also note that the FAQ that comes with the 'Note' and the notice of assignment says:

Your account will be reported to the credit reference agencies in accordance with the appropriate terms and conditions in your original credit agreement.

Now for the 98-2002 loans those T&Cs only allow loans to be reported if you break the agreement. Deferred loans where you have not broken the agreement cannot be reported.

So Erudio can't even manage to get their story straight across the various bits of info they send out.

Hopeless isn't the word for it.........

ManicMonday

It does sound like a botch job. Could well be a problem with the wording. The correspondence is littered with mistakes and, as you mention, people are reporting various anomalies on this forum and others. I'm going to call them on Tuesday - should be fun! - and will report back if anything of interest comes to light.

fermi

If anyone has the deferment status of their 1998-2002 loan reported on their credit file then please post here.

And put in a complaint to the ICO, as they would be breaching the data sharing terms of your original agreements.

ericctheking

I wonder if anyone can help?
Doesn't the CCA talk about reporting only within the European Economic area???
Erudio's fair processing notice talks about reporting outside of this.
Is this right? or another example of them trying to make a new contract with people?