'The Government has sold people out over Erudio student loans' blog discussion

This is the discussion to link on the back of Martin's blog. Please read the blog first, as this discussion follows it.

Please click 'post reply' to discuss below.


  • jimclark1967
    jimclark1967 Posts: 499 Forumite
    edited 6 May 2014 at 1:16PM
    Presumably in any sale of a loan book the purchaser pays less than the full value of loans outstanding.

    Discount 1 - to reflect the time value of the government receiving a lump sum rather than continuing to receive repayments over the next 10 years or so.

    Discount 2 - to reflect expected write offs as people either don't earn enough or default.

    Erudio have clearly seen that they can improve the collections % by enforcing the original T&Cs more tightly than SLC (and hence improve their return on investment)

    Their mistake seems to have been in expecting to pursue this strategy without anyone blinking an eyelid. They're correct to say that the T&Cs will remain the same but, as Martin states, a bit of a shambles given the expectations of behaviour built up over the SLC years. A legal challenge would be interesting!

    Certainly makes me glad to have a post 1998 loan :beer:
  • ericctheking
    ericctheking Posts: 328 Forumite
    There is also the small matter of the fair processing notice which was a sneaky underhand way to try and change the terms and conditions of some of the loans!
    Then there are lies people have been told over the phone (I hope some people have recordings)!
    The scary thing is at least in these loans the terms and conditions are fixed. The post 1998 loans have small print that allows the terms and conditions to be changed anytime. Now that is a scary thought once those loans end up in the hands of American loan sharking companies!
  • MatthewGaskin
    MatthewGaskin Posts: 28
    First Post First Anniversary Combo Breaker
    My wife's deferment was rejected because they've lost some of the paperwork we were asked to send them. They have one payslip of the three that we sent (all were together in the same envelope!).
    They're now saying the only way to stop them from taking money is to cancel the direct debit - they advised us to do this. But if they're sharing information with credit reference agencies will this damage our credit rating? She has never earned enough to repay a penny.
  • fermi
    fermi Posts: 40,546
    First Anniversary Combo Breaker First Post Intrepid Forum Explorer
    - Formally complain to Erudio that it is their fault your deferment was refused, as you did all you should. Tell them you will be going to the FOS.
    - Talk to the FOS http://www.financial-ombudsman.org.uk/consumer/complaints.htm who may be able to write to them now or take on the case once Erudio has had a chance to respond.
    - If Erudio take money they are not entitled to or harm your credit file as a result of their incompetence, then also make the the subject of a formal complaint.

    Basically you should not have your situation or credit file harmed due to Erudio's pitiful failings and bungling. The FOS is there to take a complaint to if Erudio don't sort it out in the end.
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
  • The sell off of the student loans has been more of a !!!!-up than the sell off of Royal Mail. Do we really expect any better from these jokers?
    Thinking critically since 1996....
  • jamminjamaica
    jamminjamaica Posts: 862 Forumite
    I am totally stressed out over this deferral. I usually get the letter from slc fill it and send them the proof of my income. This year i get a form from Erudio looking for a lot of information about me. I am worried as i do not trust Erudio with all my private financial information.

    They are incompetent. My deferral period runs out on the 15th May. I have sent them all the necessary information and they say they havent received it. Their call centre is a joke.

    So stressed cant concentrate at work. This is on my mind all the time.
  • fermi
    fermi Posts: 40,546
    First Anniversary Combo Breaker First Post Intrepid Forum Explorer
    Always send everything recorded delivery. That way they cannot deny having received it.
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
  • erudioed
    erudioed Posts: 682
    First Anniversary Name Dropper First Post
    edited 6 May 2014 at 3:12PM
    Lets not forget Erudio doesn't do any of this work. Whenever they have to speak out in public, it is Arrow Global's head Zach Lewy. What is it when we use the name Erudio but Erudio does nothing, it is hands off, it has subcontracted all the work, and when in trouble, a rather large parent company speaks for it. We were told Erudio has taken over our loans but thus far, i doubt anyone has actually spoken to Erudio. If that isnt dodgy, i dont know what is. Yet they ask us to fill all our forms in honestly so they can do fraud checks and credit check on us, yet they dont even tell us who they are. Not once has Capita/Ventura said to me on the phone, 'We are Capita', they pretend to be Erudio. What would happen if i said i was you. At best it is deception, at worst potential fraud...i thought all financial dealings were supposed to be transparent. I guess it isn't a level playing field...but how would the Ombudsman stand on that. We get letter headings in the name of Erudio, but again it is Capita. Someone should check out what Erudio is, i think there would be a very interesting story there. Start with Mark Howard Filer and have a look at his other 227 companies he currently runs. The whole thing is rotten but wrapped up in this air of legitimacy. And who suffers, us who now have to deal with these (not one) evasive companies sniffing round us (and our info) for the scent of money they don't deserve. Selling debt, what has this world come to!

    It would be a very easy solution concerning the taking of Direct Debits issue. Arrow Global should order Capita to change 1st Direct Debit payment to 28 days after the deferment deadline so they can process the forms before the 1st DD is due, or change the deferment deadline to 28 days before the 1st DD payment to give them the time they need to process claims. Or they could rather easily suspend collection activity until after they assess the form.

    Ive never encountered such a terrible set up as this one. Does the Department of Business Innovation and Skills know they have subcontracted the deferment work to Capita...now all my personal info is going to whatever Erudio is, so, Arrow Global, Capita/Ventura and credit reference agencies. I feel betrayed such unesteemed companies have been given my info by my own Government. What do they call such collusion historically, maybe we should have a little look at Italy's pretty recent history.
  • stormclouds
    stormclouds Posts: 17 Forumite
    I had a letter from Erudio saying my student loan had been sold to them. At least I think that's what it said. It could have been written in Esperanto for all I could understand. What I did understand was that there was meant to be a form for me to fill in and post back. Unfortunately I didn't get one of those forms so they won't be getting it back.

    I'm now terrified because I was late in sending back my deferment to the Student Loan Company. Mine ran out at the end of April and I did send the deferment form back to the SLC just before that date but it was due back by the second week in March. I've been really ill and unable to cope with anything and my carer has been equally ill so nothing has gotten done. I'm having panic attacks about this and the suicidal feelings are getting worse. Is my credit rating going to be trashed? Will these Erudio people take money can ill afford from my account? I'm seriously considering closing my bank account and moving to a new bank just in case. I'm not sleeping properly. I'm plagued by nightmares and my paranoia is rather out of control. I don't know how to contact these Erudio people because the letter has gone walkabout.

    (Telling me to contact my GP or mental health services is a waste of your time, their time and my time. There's nothing they can do for me which is why I was discharged in 2011. Medication does nothing and there aren't any illness specific talking therapies available in my part of Scotland. There's no one can help me.)
  • Martin Lewis obviously has a clear grasp of the situation we're in. This is excellent and I hope he shouts from the rooftops for us, but the fact is, a lot of us are beginning to panic now.
    Erudio (Capita or whoever is meant to be processing things) has had my P60, three payslips and completed deferment application form now for pretty much three weeks.
    I've phoned three times to check on the status and three times I've been told 'It's only just been scanned onto our system'. One time it was even hinted at that they didn't have the form, until I said it had been signed for.
    The whole situation is really worrying me now. It's roughly ten days until my SLC-instated deferment period ends. I simply can't trust Erudio's telephone promise that things will be sorted in time. What if they say they've lost something? What if they refuse me on some weird technicality? I mean, I know I'm only earning not much more than a grand a month. But these guys seem so nonchalant it's outrageous. Who knows what trick they'll pull out of the hat next? They have a DD in place on my account and by the time my deferment end date passes, I'll be on the dregs of my wage, so if they take (and I'm guessing here, as I haven't been given a breakdown of the payments) £130 out, I'm up the creek without a paddle and will have to no doubt have to take time off work to see my bank, as I'll end up being charged.
    When will someone in a legal or governmental capacity step in and take a long, hard look at this? At least just let us all step back and examine the mess, giving us breathing space.
    It's a total mess and it seems like we're being deliberately fannied around sometimes to edge us into payment. I can't be sure of that, but the odds are definitely stacked in Erudio's favour as it is at the moment. Because they're in chaos, we have to keep paying while they decide if our deferment applications are in order? How the heck can that be right? I wish we'd been warned it was going to play out like this so we could have had contingency cash in our accounts to cover rogue payments, even if it meant borrowing from friends and family. What a mess!
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