Erudio Student Loans recovering repayments.

Last summer I was late defering my student loan, as I had moved acorss to self employed, so did not have a set of accounts for them. Repayments started from August 2018. In November, I'd given up the accountants, so I sent my P60 from 2017 in instead. A few days later I was inform my loan was written off from a letter, as 25 years had elapsed. I have tried to recover the £250 repayments back from Erudio Student Loans. There response was that the account is now closed, go away. It is noted that in 2015, Erudio Student Loans repaid back repayments to myself the a deferment was also delayed.

Therefore recently applied to Small Claims Court, and now being threatened by Drydensfairfax Solicitors, "(1) We shall be seeking the Defendant’s costs of the Application to Strike out your claim, the costs sought are in no relation to the matter progressing on the Small Claims Track;" "It is estimated that our costs will be in the region of £1,500.00"

1. Is my claim at all valid under the "Small Claims Track"?
2. In reading elsewhere the class by Drydensfairfax Solicitors are unfounded, if I my claim is invalid, the costs are unlikely to be that much, still £500 or so.
3. Should I close the claim, pay the £100 and walk away?

I have until the 14th February to respond.

HELP

Comments

  • Last summer I was late defering my student loan, as I had moved acorss to self employed, so did not have a set of accounts for them. Repayments started from August 2018. In November, I'd given up the accountants, so I sent my P60 from 2017 in instead. A few days later I was inform my loan was written off from a letter, as 25 years had elapsed. I have tried to recover the £250 repayments back from Erudio Student Loans. There response was that the account is now closed, go away. It is noted that in 2015, Erudio Student Loans repaid back repayments to myself the a deferment was also delayed.

    Therefore recently applied to Small Claims Court, and now being threatened by Drydensfairfax Solicitors, "(1) We shall be seeking the Defendant’s costs of the Application to Strike out your claim, the costs sought are in no relation to the matter progressing on the Small Claims Track;" "It is estimated that our costs will be in the region of £1,500.00"

    1. Is my claim at all valid under the "Small Claims Track"? Small Claims Track is for debts up to a maximum of 10k, so this is the right one if you're trying to get them to refund your over payment.
    2. In reading elsewhere the class by Drydensfairfax Solicitors are unfounded, if I my claim is invalid, the costs are unlikely to be that much, still £500 or so. It depends on how much work they have put into the defence. Every hour they spend is billable (they have to be paid), every phone call, every letter, every hour they spend filling in a form, it all mounts up. "We shall be seeking the Defendant’s costs of the Application to Strike out your claim, the costs sought are in no relation to the matter progressing on the Small Claims Track" < indicates that the costs won't just be £1,500, this is just for striking out the claim, not for defending it. Remember you don't have to pay their legal fees and costs if you win.
    3. Should I close the claim, pay the £100 and walk away? No one can answer this for you, sorry. It'll cost them more to defend the claim then it's actually worth, and if you show them that you have a water tight case the chances are that they will settle before (it is a risk though). It might depend on when you paid the £250, if it was before the account was written off it may be wise to walk away. The overall decision is yours though (even if you went to see a Solicitor they can't tell you what to do, they can only advise you).

    I have until the 14th February to respond.

    HELP


    Hope this helps.
  • silvercar
    silvercar Posts: 46,734
    Academoney Grad Name Dropper Photogenic First Anniversary
    Ambassador
    Very, very unlikely that if you lose the other side would be awarded any more than court fees and expenses. They've chosen to crack a nut with a hammer ie using expensive professionals when they could represent themselves.

    See here, here and MSE article here
    I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to [email protected] (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • Thank you.

    The defendant is trying to strike out the claim, saying the account was closed before I requested a refund. Yet only upon my request for a refund, was I initially informed of the account closure. Their letter outlining the closure of account sent through the post was not received.

    As a new user, I can not link the latest letter.
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 341.7K Banking & Borrowing
  • 249.7K Reduce Debt & Boost Income
  • 449.1K Spending & Discounts
  • 233.8K Work, Benefits & Business
  • 605.9K Mortgages, Homes & Bills
  • 172.4K Life & Family
  • 246.7K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards