Erudio termination

Kelstar2

Hi 9 years ago I was in a bad place and messed up defering my two old style loans one to thesis the other to erudio from the 90s. My step dad had died and my husband had left me with our four year old and no money. When I realised i had forgotten I phoned thesis and erudio. In no suprise to anyone thesis were wonderful and allowed me to defer and pay back the arrears while Erudio terminated my loan. That time was such a dark time. I couldn't believe how bloody stupid I had been and here I was with no money and a child and an ex who didn't want to be with me plus I was mad with bereavement. Bad times. I think I just broke down. The Erudio human on the other end must have sensed how close to the edge I was. (I'm crying writing this, isn't that mad just remembering how broken I was!) Anyway I was refered to their vulnerable people dept or something I can't remember and they said I could pay it off ten pounds a month and that basically they wouldn't bother me. The erudio loan is about ten grand by now I think plus seven for thesis. It was an old style loan. I have defered every year to thesis and now I'm fifty and despite all my ambition still am not earning enough. Thesis won't write off my loan because of the erudio stuff. I don't know whether to just keep defering to thesis until I die and keep quietly paying the erudio debt off or try and get erudio to write it off via the ombudhson. The money is obviously going up with inflation. I don't know whether to poke the hornet's nest. It's a big stressor for me. I've got my life in order in other areas and run my own business and am largely debt free apart from a small bank loan to invest in my business. I'd like to expand the business and earn over the threshold but money is still very tight but really yes, i wonder whether to keep the head down or try and get the erudio written off. Thanks for reading. Your thoughts very appreciated.

kaMelo

Possibly needs moving to the Student MoneySavings Board @silvercar

An important question, how old where you when you took out the student loans?

Leaving aside Erudio for the moment, could you clarify your position with Thesis. You mention that, although you messed up deferring the loan, they allowed you to backdate the deferral and continued to defer ever since. But you also mentioned paying them money. The two positions are not compatible, either you are deferring or you are in repayment, it can't be both at the same time.

Your position with Erudio should have no bearing on what Thesis do, they are totally separate companies. Being in arrears with one should not affect how the other treats your loan.

Erudio, well according to the terms of the loan once you missed a deferral the loan is in default, by defaulting the agreement is cancelled, the total amount repayable and will never be written off, but that's not the end of the matter. The loan is also subject to the Consumer Credit Act and can, if certain circumstances are met, become statute barred.

In short could you answer three points;

1. How old where you when you took out the loans?
2. Could you clarify whether Thesis defaulted your loan or whether they allowed you to continue deferring?
3. When was the last time you paid any money to Erudio?

The answers you give will clarify what you can do going forward.

Brie

@kaMelo said The loan is also subject to the Consumer Credit Act and can, if certain circumstances are met, become statute barred.

If this is correct then as I understand it there are 2 significant things that must NOT be done. No payments being made and no admitting to owing the money in writing. In England debts become statute barred after 6 years of non payment and, I believe, non admission. So where you live can be significant.

Kelstar2

Hi thanks very much. I was in arrears with Thesis as they charge for the months you go over deferral if it is over the three month backdated time. So I cleared those arrears and they allowed me to defer. I was 20 when I got the university loans.

The loans are for different years and bought by two different companies so one can terminate their loan and the other can allow discrentionary deferment. Thesis were much nicer and allowed this under the circumstances. Erudio did not. Now thesis say they can't write off my loan because although they are two different companies the fact that erudio have the otehr half and have terminated it means that i have to keep defering or pay thesis. I am in a payment plan of ten pound a month with erudio for a ten grand debt because they deemed me poor and vulnerable but only after they had terminated the loan. Thanks all for help.

silvercar

@Kelstar2 welcome to the MSE forum. Sorry it is a difficult issue that brings you here.

I’ll move this to the student board.

kaMelo

I was 20 when I got the university loans.

Thanks for clarifying, therefore these loans, if you complied with the terms of the loan, they should have been written off by now at the latest date would have been your 50th birthday.

Given this I'm curious with what you said:

I was in arrears with Thesis as they charge for the months you go over deferral if it is over the three month backdated time. So I cleared those arrears and they allowed me to defer.

That doesn't make much sense as there are only two ways to be in arrears;

1. You breached the earnings threshold but didn't set up/keep up with your payment plan
2. You defaulted the agreement by not deferring on time (there are other ways to default but not important here)

So, another couple of questions. Have you ever breached the earnings threshold in any year since leaving University, and if so did you set up a payment plan with Thesis. If you've never breached the earnings threshold and continually deferred, how come you had arrears with Thesis?

If what you've written is correct, that Thesis allowed you to backdate deferral and you have been in deferral ever since then by rights that loan should have been written off already. What I fear (but hope I'm wrong) is that Thesis actually defaulted you, hence the arrears you mention.

Depending upon your answers you possibly have a case to challenge Thesis as they are talking nonsense about your Erudio default preventing the write off of your Thesis loan, the only thing that would prevent Thesis writing off your loan is if you breached Thesis's terms and conditions. Your status with Erudio is irrelevant to them.

Thesis are a front company for Link Financial and Erudio are a front company for Arrow Global, two unconnected debt purchasing companies. That would be like Lloyds bank calling in your loans because you defaulted on a loan with NatWest.

Erudio however, that's a different scenario and I don't want to get your hopes up, but there are ways to deal with them. You mention your repaying £10 per month to them, are you still paying this now and if not when was your last payment to them?

Kelstar2

Hi thanks so much. I've never been over the threshhold and they just charge admin for you being late for deferring and that was what i owed. That doesn't matter I don't think. I spoke to national debt helpline yesterday and they said I should try erudio complants so why not. I still pay them ten quid and I've never missed it. So every month I pay that. I spoke to thesis a couple of days ago and because it is the same loan split in two and sold to two companies if one company terminates their half of the loan then the other can't write it off. It should be written off this December apparently but the Erudio termination is preventing that. Thanks to all for your kindess and welcome. I very much appreciate it

kaMelo

Taking what Thesis have told you at face value, that the money was an admin fee rather than being in default, then I think what they have also told you about not being able to implement the age related cancellation of the loan is simply wrong. Your student loan was not split into two as you didn't take out one student loan, you took out a new loan for each year of your studies and each of these loans were sold individually, that's how they ended up being sold to two different companies.

If what Thesis said was true, that you only had one loan split into two, then would be all or nothing. If the agreement you had with Erudio has been defaulted and terminated then, by definition, the agreement with Thesis should also have been defaulted and terminated at the same time. That hasn't happened because that's not how it works.

Thesis and you are both bound by the terms of the loan agreement and Thesis say you have not broken the agreement with them. Therefore they have no reason not to stick to that agreement and implement the age related cancellation when it is due in December If they refuse to do so then I think you should complain to Thesis and follow it up by taking to the Financial Ombudsman if necessary. Given your intention to expand your business I think it's prudent to do this sooner rather than later as the Ombudsman will likely take a while to rule on the matter. Whatever Thesis may say stick to your guns, you haven't broken your agreement with Thesis therefore they have no reason not to write the loan off at the appropriate time.

Erudio will require a different approach. Given you are still paying them £10 p/m then the nuclear option would be to go for a statute barred defence. You would have to stop paying and go radio silent. Ensure your address is kept up to date but ignore any of their communications with one exception. If you received a letter before action through the post this is Erudio starting court action and you must respond to this. If you chose this option then keep your fingers and hope they don't initiate court action for six years, after which the debt would be statute barred.

Or, you could just keep on paying £10 per month. It's important to remember your agreement with Erudio is terminated so, should you expand your business, you are under no obligation to inform them of any increase to your earnings. It's impossible to say how they may behave going forward, they may even start a court claim, but what I would say is this, given how little they will have paid for your loan (10-20% of it's value) even at £10 p/m they will eventually make a profit from you so may just leave you alone.