Erudio SL to be written off in Oct 2017

Edwood_Woodwood

My student loan is due to be written off in Oct 2017, 35 months time.

However, due to Erudio being a complete !!!!! & despite being fully entitled to defer, Erudio have calculated the £1k I owe as 35 monthly payments to pay the whole lot off obviously by Oct 2017.

My SL states a "minimum" of 60 monthly payments to repay.

Are Erudio allowed to do this? Specifically, reduce the minimum term to 35 months?

Or is it a case that 25 months (from the 60) should already have been written off and they can only chase the 35 months remaining?

Lungboy

No, they aren't allowed to do that, but you aren't the first they've tried it with.

rizla_king

This is one of the cons jobs Erudio are trying to pull. They legally MUST calculate repayments based upon the full 60 month term. If that means what is unpaid is written off before they are all completed then that is tough doo doo on them.

Complain and take them to the FOS.

Report them to the FCA for trying to illegally change the T&Cs of your loan and breaking the loan regulations.

Complain to BIS who said Erudio would not be changing the terms of the loans. They are obviously trying to here.

Sarebear78

I agree with everything Rizla King says.

Complain about not being deferred and this ridiculous monthly payment scam! If no reply after 8 weeks then you can take it to FOS (or if you are not happy with their reply - more than likely with Erudio!).

Good luck - sorry you are part of this unfortunate Erudio club!

Jonez

Am I right in thinking that the 35 payments thing would only apply if you had, at some point, previously made 25 payments?

Student1983

Edwood_Woodwood wrote: »

My student loan is due to be written off in Oct 2017, 35 months time.

However, due to Erudio being a complete !!!!! & despite being fully entitled to defer, Erudio have calculated the £1k I owe as 35 monthly payments to pay the whole lot off obviously by Oct 2017.

My SL states a "minimum" of 60 monthly payments to repay.

Are Erudio allowed to do this? Specifically, reduce the minimum term to 35 months?

Or is it a case that 25 months (from the 60) should already have been written off and they can only chase the 35 months remaining?

My loan due to be cancelled in December. They have not yet tried to shorten my terms. I have started repayments and they seem correct as still trying to defer without using their form. I'm hoping I will get deferred still and get my repayments backdated. I wonder though that they haven't realised my loan due to get cancelled. Someone else wrote that erudio were trying to shorten their repayments as they will be turning 60. Is this the case for you cause maybe erudio are trying it on with the 60 age cancellation term.

rizla_king

Jonez wrote: »

Am I right in thinking that the 35 payments thing would only apply if you had, at some point, previously made 25 payments?

That is correct. You would have to have made 25 full monthly payments.

rizla_king

If you are very close then they probably realise they can't get away with this con as it would require them to demand stupidly high and obviously bogus monthly payment amounts.

If you took it to the logical conclusion where someone owed the max amount they could have borrowed at the time and have a year of less to the age write off, then you would have them demanding £1,000 per month or something similarly ludicrous and obviously patently wrong.

For people who still have a several years to go I think they hope people wont twig or realise they are higher by a not so obvious amount, or that people will just not bother to even question it.

In other words, they will try this con only on cases where they think they can get away with it.

Student1983

Student1983 wrote: »

Got a reply from BIS. Reiterated no changes to T&c's.

'As we stated in a previous reply, mortgage style loans are regulated loans under the Consumer Credit Act 1974 ... All terms and conditions, including those around repayment and cancellation of loans, therefore remain unaltered.

A borrower’s liability to repay a mortgage style loan will be cancelled if the borrower
(a) dies,
(b) is not behind on any repayments under any agreement for a student loan and
(i) was under the age of 40 when their last agreement for a student loan was made and they reach the age of 50 or when the last agreement for a student loan has been outstanding for not less than 25 years, whichever is the sooner, or
(ii) was aged 40 or older when their last agreement for a student loan was made and they reach the age of 60, or
(c) can show the lender that they receive a disability related benefit and because of the disability is permanently unfit for work.

Mortgage style loans are repayable in either 60 or 84 monthly instalments, depending on the number of mortgage style loans a borrower took out. Monthly repayment amounts are calculated based on the amount of loan outstanding (principal plus interest) and the number of monthly repayment instalments remaining, in accordance with the Education (Student Loans) Regulations 1998 and borrowers’ individual loan credit agreements.'

I also highlighted concern regarding shortening of repayment terms. Below is their response

'If a mortgage style loan borrower only has a small number of monthly repayment instalments remaining when their monthly repayment amount is calculated, it is possible that they may repay the full amount of the loan before they reach the point at which they become eligible to have their loan cancelled. This is a logical consequence of the repayment terms and conditions which state that a mortgage style loan will be repaid in a certain number of instalments, and does not represent a shortening of the repayment terms.'

Any thoughts on this anyone?

Also as anticipated my repayment was not taken. Even if you want to pay they make it difficult. Apparently they couldn't take it as I was in deferrment and hadn't time to call the repayment. It was in abeyance, whatever that means. They will however take my dd payment for November. I was having none of this as Anna is correct to say they wil manipulate it so as to put us in arrears and thus no cancellation. Anyway I paid by card. Not prepared to breach my terms with cancellation looming. My deferral meanwhile has incomplete status and insist the form needs filled out.[/QUOTE.

I hope this is helpful.

Jonez

rizla_king wrote: »

If you are very close then they probably realise they can't get away with this con as it would require them to demand stupidly high and obviously bogus monthly payment amounts.

If you took it to the logical conclusion where someone owed the max amount they could have borrowed at the time and have a year of less to the age write off, then you would have them demanding £1,000 per month or something similarly ludicrous and obviously patently wrong.

For people who still have a several years to go I think they hope people wont twig or realise they are higher by a not so obvious amount, or that people will just not bother to even question it.

In other words, they will try this con only on cases where they think they can get away with it.

The scenario you have outlined applies to me - I did make payments (12-16?) around a decade ago, when my salary exceeded and was happy to do so. I now have a few months remaining until they have to write me off. I am not in arrears and I am keeping a very watchful eye on things in case they should suddenly decide they have a reason not to fulfil their legal obligation.

rizla_king

Student1983 wrote: »

Mortgage style loans are repayable in either 60 or 84 monthly instalments, depending on the number of mortgage style loans a borrower took out. Monthly repayment amounts are calculated based on the amount of loan outstanding (principal plus interest) and the number of monthly repayment instalments remaining, in accordance with the Education (Student Loans) Regulations 1998 and borrowers’ individual loan credit agreements.'

Correct.

Student1983 wrote: »

'If a mortgage style loan borrower only has a small number of monthly repayment instalments remaining when their monthly repayment amount is calculated, it is possible that they may repay the full amount of the loan before they reach the point at which they become eligible to have their loan cancelled. This is a logical consequence of the repayment terms and conditions which state that a mortgage style loan will be repaid in a certain number of instalments, and does not represent a shortening of the repayment terms.'

Again correct but nothing to do with the case we are discussing here.

That is saying if you finish your 60/84 payments before the age write off kicks in that is not a shortening of the loan. Clearly it's not as it has run its full 60/84 payments and is finished.

Edwood Woodwood is talking about the exactly opposite case where the write off comes before you have finished paying all 60/84 payments.