ERUDIO student loans help

edited 30 November -1 at 1:00AM in Credit File & Ratings
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  • Jill18Jill18 Forumite
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    A post from MSE on their news page- not able to post link as new. Seems to suggest Erudio have told them they WILL be reporting deferred loans to CRAs but they said to Paul Lewis we could wriet to them to tell them if we didnt want loans to be reported.
  • Seems bizarre that they're going to report these loans to CRAs unless we ask them nicely not to. I'll believe it when I see it.
  • fermifermi Forumite
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    Maybe there is a split timewise on permission to report? Correlating to when the more strict Data Protection Act 1998 came into force?
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  • fermifermi Forumite
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    OK. Given someone the hurry up to send me copies their 95 and 97 agreements.

    This is what clause 16 in those says.

    wfyt6Rb.png

    To me that would suggest that they could be referred to the CRAs if "judged appropriate".
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  • erudioederudioed Forumite
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    But, as i mentioned last week, the fact that SLC did not report those loans to CRAs, highlights that Erudio are not "treating borrowers fairly at all times" as they state because if SLC decided against passing on such info, the ERudio doing so is the full extent of the law approach! And thus not treating borrowers fairly.
    I am still unclear what will happen with CRAs! In fact more so now 2 journalists have tried for an answer. And of course, now Erudio will be getting bolder if they have had their answers accepted.
    As also mentioned, Experian has a deal with Arrow Global, and for the second article, this one on this site and the one in the independent, they both go to Experian for a quote that says all will be well.
    And in the article on this site, my research, as i keep hammering on, suggests that Erudio is not set up by Arrow Global (although they are always mentioned as being so) but were originally called Honours Trustee 2 Limited, with Honours Trustee Limited owning Honours Student Loans, a company set up a number of years ago.
    Maybe i have been barking up the wrong tree all along, or maybe not. Maybe i am not helping at all!
  • "People who defer students loans taken out between 1990 and 1998 will have this information added to their credit files..."
    Read the full story:

    1990s student loan deferrals to be added to credit files

    OfficialStamp.gif

    Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
  • fermifermi Forumite
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    "People who defer students loans taken out between 1990 and 1998 will have this information added to their credit files..."
    Read the full story:

    1990s student loan deferrals to be added to credit files

    OfficialStamp.gif

    Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.

    Under this clause?

    wfyt6Rb.png


    If so I think that could be a little shaky? Especially given that post DPA 1998 it certainly was not allowed?
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  • erudioederudioed Forumite
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    The MSE article title suggest they will report it to CRAs but later on suggests they will keep SLC's policy of not reporting it. So, just a touch of clarification would help if Michael Smith has been told this by Erudio?

    I dont know fermi, it does look one of those things that could be interpreted either way but if we add in Erudio's claim of treating "borrowers farily at all times", fairly in this case would be to not report them if we dont want information of our loans on databases where our information is sold to other companies and available for anyone to see. We have not defaulted, so why have it open for public viewing!
  • fermifermi Forumite
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    A day for news.

    I have just had this forwarded to me from someone who complained to BIS.
    Thank you for your correspondence of x April about the sale of student loans and Erudio. The Minister receives a large amount of correspondence and is unable to respond to each one personally. I have been asked to reply on his behalf.


    Terms and conditions:


    The terms and conditions of mortgage-style student loans have not changed as a result of the sale of these loans to Erudio Student Loans Ltd (Erudio). Mortgage-style (MS) student loans are regulated loans under the Consumer Credit Act 1974 (as amended). The terms and conditions for the deferment of MS loans are prescribed in the Education (Student Loans) Regulations 1998, which state that borrowers will be able to defer their loans if they have not already been asked to repay the loan in full and they can show (i) that their gross income for the relevant month is not more than the deferment level, and (ii) if the lender asks, that their gross average monthly income during the 3 months immediately following the relevant month will not or is unlikely to be more than the deferment level. These terms have not changed as a result of the sale, and borrowers have the same rights and obligations as they had when their loans were managed by the Student Loans Company (SLC).


    Erudio requests for information:


    Erudio have adopted a different approach to the deferment application process than the SLC previously applied; the information they are asking for is to help them to confirm borrowers’ current gross income and determine their likely gross income over the next three months in order to satisfy the conditions of deferment. This change in approach does not constitute a change to the terms and conditions of the loan as prescribed in the Education (Student Loans) Regulations 1998. The method of the deferment process is not specified in those terms and conditions.


    Sharing of data with credit reference agencies:


    In the UK, it is generally agreed that reporting relevant and appropriate levels of information about credit agreements and how they are being paid is an important part of the process required to support responsible lending and borrowing. Erudio has discussed the content of the disclosure of information sections of the terms and conditions with the Information Commissioner’s Office. Erudio considers that the reporting of accounts to credit reference agencies is in accordance with the terms and conditions as specified in section 16 (Disclosure of Information) of borrowers’ credit agreements that were issued before 1998. The terms and conditions are different for borrowers with loan agreements from 1998 onwards and in these cases disclosure will only occur if the account is in arrears or default as specified in part (b) of section 12 (Disclosure of information). Borrowers with post-1998 agreements are being offered the option to consent for their up to date accounts to be reported. If consent is withheld, these loans will not be reported to CRAs unless they are in arrears or default.


    Inclusion of benefits in income calculations:


    The definition of gross income (for the purposes of MS loan deferment) is prescribed in the Education (Student Loans) Regulations 1998. Benefits such as housing benefit, working tax credit and child benefit are included in the calculation of gross income for the purposes of applying for deferment. However, disability related benefits are excluded from income calculations.


    Vulnerable borrowers or those in financial difficulty who are having trouble repaying their loans should contact Erudio to discuss their individual situation.


    Erudio customer service:


    Erudio holds a consumer credit licence regulated by the Financial Conduct Authority (FCA), which ensures high standards of practice in licensees. Erudio must operate in accordance with the terms and conditions specified in borrowers’ credit agreements, and must abide by the regulations governing the loans, guidance from the Office for Fair Trading (OFT) and the Credit Services Association (CSA) and other industry codes of practice, which include particular protections for vulnerable borrowers and those in financial difficulty.


    Erudio is working hard to ensure that their Customer Service Teams have the necessary information and guidance to advise customers correctly, and will continue to monitor service levels and make continuous improvements wherever possible.


    If borrowers have complaints or believe they are being treated unfairly, they should contact Erudio in the first instance to raise their concerns, which will be investigated through Erudio’s internal complaints procedure.


    By post: Erudio Student Loans, PO BOX 580, Rotherham S63 3FR


    By phone: 0845 217 1134 (UK); +44 113 318 9010 (overseas)


    By email: [EMAIL="customerservice@erudiostudentloans.co.uk"][email protected][/EMAIL]


    Website: http://www.erudiostudentloans.co.uk/


    If Erudio cannot resolve the issue satisfactorily or if a borrower has not received a response within 8 weeks, the borrower can refer their complaint to the Financial Ombudsman Service, an independent service for settling disputes between businesses providing financial services and their customers. They can be contacted as follows:


    By post:
    The Financial Ombudsman Service, South Quay Plaza, 183 Marsh Wall, London
    E14 9SR


    By phone:

    0800 023 4 567 (normally free from landlines but some mobile networks may charge)
    0300 123 9 123 (calls charged at the same rate as 01/02 numbers on mobile phone tariffs)
    +44 20 7964 0500 (if calling from outside the UK)


    By email: [EMAIL="complaint.info@financial-ombudsman.org.uk"][email protected][/EMAIL]


    Website: http://www.financial-ombudsman.org.uk
    [FONT=Arial, serif]Note that the Financial Ombudsman only has jurisdiction in respect of Eligible Complaints as defined by the FCA rules. If you are not considered an eligible complainant and remain dissatisfied with Erudio’s final response, you can contact the Credit Services Association:
    [/FONT]
    [FONT=Arial, serif]Credit Services Association, 2 Esh Plaza, Sir Bobby Robson Way, Great Park, Newcastle upon Tyne NE13 9BA[/FONT]
    [FONT=Arial, serif]Website: http://www.csa-uk.com[/FONT]


    I trust this response is helpful.


    Yours sincerely


    BIS MINISTERIAL CORRESPONDENCE UNIT

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  • edited 21 April 2014 at 9:34PM
    fermifermi Forumite
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    edited 21 April 2014 at 9:34PM
    Sharing of data with credit reference agencies:

    In the UK, it is generally agreed that reporting relevant and appropriate levels of information about credit agreements and how they are being paid is an important part of the process required to support responsible lending and borrowing. Erudio has discussed the content of the disclosure of information sections of the terms and conditions with the Information Commissioner’s Office. Erudio considers that the reporting of accounts to credit reference agencies is in accordance with the terms and conditions as specified in section 16 (Disclosure of Information) of borrowers’ credit agreements that were issued before 1998. The terms and conditions are different for borrowers with loan agreements from 1998 onwards and in these cases disclosure will only occur if the account is in arrears or default as specified in part (b) of section 12 (Disclosure of information). Borrowers with post-1998 agreements are being offered the option to consent for their up to date accounts to be reported. If consent is withheld, these loans will not be reported to CRAs unless they are in arrears or default.

    BIS mus be busy sending out info on this today, as that came to me literally minutes after the other info that suggested much the same.
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