Erudio and SLC problem - please help!

linzwebb
linzwebb Posts: 18
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Hello,
I hope someone can help - this is a ‘in a nutshell’ description of an issue I have with Erudio.
I have 3 old SLC loans from 94-97.
These were always deferred up until around 15yrs ago when there was a mix up with SLC not getting my deferment and trying to charge me. It was never resolved. 
The loans were then passed onto Erudio who I have heard from sporadically over the years with statements. There’s never been a demand for money or option for deferment on these statements. 
I have also always been a low earner and would always have been below the threshold for repayment.
Fast forward to last weekend when I received a final demand letter from Erudio stating that the full amount needs to be paid.
The loans have matured - all over 25yrs old and my contractual rights have been terminated.
Another £1000 seems to have been added to the original amount also, bringing it to around £5,500 that they want.
They also say they may pass my account to a collections agency.
My questions are: 
1. As this debt is so old, is it still enforceable?
2. Do Erudio pass on to collection agencies or is it just a threat? 
I will obviously contact them and sort something out with them if I absolutely have to.
I’m obviously concerned about any effect to my credit file as I’ve got it to be really good now after years of money struggles. 
I appreciate any help and advice. 
Thank you 🙏🏼 

Comments

  • kaMelo
    kaMelo Posts: 2,278
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    edited 26 August 2022 at 10:20AM
    linzwebb said:
    Hello,
    I hope someone can help - this is a ‘in a nutshell’ description of an issue I have with Erudio.
    I have 3 old SLC loans from 94-97.
    These were always deferred up until around 15yrs ago when there was a mix up with SLC not getting my deferment and trying to charge me. It was never resolved. 
    The loans were then passed onto Erudio who I have heard from sporadically over the years with statements. There’s never been a demand for money or option for deferment on these statements. 
    I have also always been a low earner and would always have been below the threshold for repayment.
    Fast forward to last weekend when I received a final demand letter from Erudio stating that the full amount needs to be paid.
    The loans have matured - all over 25yrs old and my contractual rights have been terminated.
    Another £1000 seems to have been added to the original amount also, bringing it to around £5,500 that they want.
    They also say they may pass my account to a collections agency.
    My questions are: 
    1. As this debt is so old, is it still enforceable?
    2. Do Erudio pass on to collection agencies or is it just a threat? 
    I will obviously contact them and sort something out with them if I absolutely have to.
    I’m obviously concerned about any effect to my credit file as I’ve got it to be really good now after years of money struggles. 
    I appreciate any help and advice. 
    Thank you 🙏🏼 
    Do not contact them yet, get your ducks in a row first.

    Given the dates you've mentioned I'm going to assume you are talking about mortgage style student loans here. The part I've bolded above is important as any breach of the terms of the loans means the loans are repayable in full and never written off. Failing to defer is a breach of the terms so yes, the loans are enforceable.

    But things are not as simple as that, because it is a mortgage style student loan they can also become statute barred. To become statute barred there would need to be a period of six years where you have not acknowledged the loan. Your post seems to suggest that in the last fifteen years they (SLC/Erudio) have written to you sporadically but you have not responded to them.

    Before you make any contact with them work out an accurate timeline, if you can be certain that you have not acknowledged the loan for a continuous period of six years (for clarity deferring is acknowledgement)  then the loan should be statute barred and dealt with accordingly. If you haven't had a period of six years then knowing the last date you did acknowledge the loan is very important, fast forward six years from that date and it will become statute barred.

    Whether Erudio would take this further is not known, they don't seem to be overly proactive in doing so but have in some cases. Important to note that, short of a CCJ, nothing they can do can damage your credit file. Them trying to obtain a CCJ is still a long way off yet and can be dealt with if it ever comes around.

    Before worrying about that, work out the dates accurately and see whether the loans are statute barred.
  • linzwebb
    linzwebb Posts: 18
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    Thank you so much for replying - it’s very much appreciated.
    To clarify, there has been no contact for over six years, for certain. 

  • kaMelo
    kaMelo Posts: 2,278
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    In that case read @sourcrates post on statute barred debts here before deciding what to do.
    https://forums.moneysavingexpert.com/discussion/6027755/statute-barred-debts-and-the-limitation-act#latest

    You can write to them using the information in the above thread or you can carry on ignoring them, file their correspondence in the bin and enjoy life. 
    If you choose the latter keep your eyes open for a Letter Before Claim sent by Erudio.  If that ever comes then you must reply with a statute barred defence.

  • Thank you ever so much for this clarification - it’s so helpful and appreciated 
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