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    ERUDIO student loans help
    • #1
    • 16th Mar 14, 10:32 PM
    ERUDIO student loans help 16th Mar 14 at 10:32 PM

    My student loan has recently been sold to erudio student loans company. I currently defer my loan as I am below the salary threshold to pay it back. The letter states that erudio will supply details of my loan to credit rating agencies, something that has never been done before. There have never been any details of my student loan on my credit file. Will this adversely effect my credit score?? I know I am right to defer as I do not earn enough to start paying it back, however, I am worried that a 10k student loan debt that has not been paid off can only be a bad thing for my credit score

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  • pbs84
    You just tell them that if they won't accept the deferemnt then you will take them to the FOS and report them to the authorities.

    They seem to be buckling with other people so for on things like providing bank details, so they may well on the rest as well. Some have been told to just cross out the bits on the forms they are not prepared to anwer becasue they are not needed to prove gross income.

    Arrow may be daft, but doubt they are daft enough to go to court when you can prove you made a valid deferemnt request. There would be a huge shlt storm of bad publicity.
    Last edited by pbs84; 21-03-2014 at 2:24 PM.
    • ericctheking
    • By ericctheking 21st Mar 14, 2:25 PM
    • 324 Posts
    • 264 Thanks
    Arrow may be daft, but doubt they are daft enough to go to court when you can prove you made a valid deferemnt request.
    Originally posted by pbs84
    These type of sharks will often threaten court however.
    Also sometimes they will actually take people too court when they are quite certain that person will not defend so they can get an uncontested judgement. So always defend people!
    Again it is just a numbers/percentage game to them.
    • ericctheking
    • By ericctheking 21st Mar 14, 2:40 PM
    • 324 Posts
    • 264 Thanks
    But as pbs84 says they seem to be buckling already so talk of court is premature.
  • Ryansson
    The going to court bit etc is daunting, have enough on my plate atm but the more people who know they have no obligation to provide everything Erudio demand the better.

    My original letter from SLC was sugared up a bit with a £1545.64 reduction due to a 'discovered issue with some of the correspondence that was sent to you in the past. This correspondence could be interpereted as not being fully compliant with the consumer credit act 1974 as ammended in 2006'
  • calliopeviolet
    Oh god, this is all scaring me to death!

    Has anyone had a response yet after sending back not the deferral forms, but the letter they've written themselves asking to defer?

    ETA: I realise probably not. I'm just having a panic.
    Last edited by calliopeviolet; 21-03-2014 at 5:00 PM. Reason: to say something else
    • ericctheking
    • By ericctheking 22nd Mar 14, 5:33 AM
    • 324 Posts
    • 264 Thanks
    Oh god, this is all scaring me to death!.
    Originally posted by calliopeviolet
    Don't be scared just follow the terms and conditions of the original agreement and there is nothing to be scared of. They are the ones trying to trick people into agreeing to things they don't want (deferred loans put on credit reports etc, when the loans were sold as a loan that doesn't get put on credit reports)
    Also you are under no legal obligation to provide them with all those details. (if you are a home owner or tenant, etc)
    There is no need to feel alone these days too, with the internet and us sharing information they are less likely to get away with these underhand tactics.
  • calliopeviolet
    Thanks ericctheking, but I'm confused. Surely, if they want me to complete their forms, and I don't, they could just say 'fine; now you need to give us back everything you've borrowed'. You say they don't have any right to ask the things they're asking for, but what can I quote to them which makes it crystal clear and legal that this information is erroneous so I won't be supplying it?
  • pbs84
    This letter has been suggested on other forums as there in nothing in the law or the loan agreements that says you have to use their forms. As long as you supply the proof of gross income that the law says is required for you to defer, can't see that they have any legal basis for refusing deferement. You would have met the legal conditions and given them proof.

    To Erudio

    Erudio Student Loans Ltd
    PO Box 580
    S63 3FR

    Formal request for deferment under the Education (Student Loans) Act and Education (Student Loans) Regulations.

    I formally request that my student loan accounts listed on the following page are deferred for a further 12 months pursuant to the Education (Student Loans) Act and Education (Student Loans) Regulations.

    In accordance with the regulations I provide evidence that:

    - my gross income for the relevant month is not more than the deferment level.
    - my 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.

    where “relevant month” means the month before the month in which the borrower asks for deferment.

    I shall not be completing the form provided by yourselves as it requests private personal or other data that is not relevant to the above deferment conditions.

    I note that there is no requirement in the legislation or agreement to apply for deferment in a given format or on a specified form.

    I declare that all information given is correct to the best of my knowledge, and no relevant source of income has been omitted. As such I fulfil the conditions for deferment.

    I look forward to confirmation of deferment.

    Yours faithfully,
    Last edited by pbs84; 24-03-2014 at 8:19 AM.
    • want_to_save
    • By want_to_save 22nd Mar 14, 12:51 PM
    • 330 Posts
    • 549 Thanks
    wish i had read all this before i filled in the stupid form
  • Campervanman
    My friend has one of these loans and has been having sleepless nights worrying about the forms which he does not understand. I have a quick look and there seemed information required which should not be part of the loan deferment including record of savings, housing status etc. I suggested he drafted a letter saying he was not prepared to use their forms and went to the CAB to ensure it was correct. Its really helpful to see the letter above, thank you.

    His situation is slightly different as he also has just started his own business and they are asking to see his last full tax return. He is actually making no money from the business yet and is being supported by his partner. Is there any other way of demonstating his self employment income (or lack of it!) other than giving them his full tax return?
  • calliopeviolet
    This letter has been suggested on other forums as there in nothing in the law or the loan agreements that says you have to use their forms. As long as you supply the proof of gross income that the law says is required for you to defer, can't see that they have any legal basis for refusing deferement. You would have met the legal conditions and given them proof.
    Originally posted by pbs84
    And you really think that by doing this, rather than completing the forms, they'll accept that as an application for deferral? I just can't help stressing that they'll completely ignore them and then demand you pay the whole bloody lot back.
  • pbs84
    They may not like it, but they have no legal grounds on which to refuse it.
  • calliopeviolet
    Well, that's something. I've got a friend in the same situation and she's so stressed out about it that she's talking about just starting to pay it back even though she is eligible to defer. It makes me so angry because that's, of course, precisely what they want, isn't it?
  • pbs84
    Definetly defer no matter what way you decide to do it. Just don't let them take the pee with the info they ask for if you don't want to give it. That is the main point.
  • calliopeviolet
    Thank you, pbs84.

    God, I wish I could stop thinking/worrying about it all.
  • pbs84
    SLC didn't used to ask for property details, ask you to allow reporting of deferment to the credit agenecies, and the other things Erudio do. They were legally able to defer without a problem on just that.

    The law says you are entitled to defer if your gross income is below a certain level. It doesn't put any conditions on it other than that. It doesn't say you have to apply on a certain form, or give any other information.

    If they get snotty I would ask them where in the agreement or law does it say that you have to give them informmation not relevent to your gross income and not required by law or the loan agreement?

    The other optiuon is to use their forms but just cross out the parts that are none of their business.
  • calliopeviolet
    The form says that omissions may result in civil procedures against you so isn't that very clear that you can't leave stuff out?
  • pbs84
    It means omissions relevant to your deferment. For example, if you declared your income was below the threshold and you omit to list that you have a 2nd job and the income from that, or you have an income from other sources you don't declare, then obviously those sorts of omissions.

    They obviously want you to think it applies to all the info they ask for, but they have no basis in law for taking action against you if you don't give them information that isn't relevant to your deferment.

    The only info relevant to your deferment is proof of gross income.

    They want you to think that you have to use their forms. Nothing in law says you do.

    They want you to think you have to give the extra info they ask for. Nothing in law say you do.

    They want you to think that not using their forms or not giving non relevant information means they can refuse deferral. Nothing in law allows the to insist on that info, refuse deferral if you fail to give it, or take action against you if you don't.

    It's all very carefully designed to subtly mislead and panic you into giving information they are not entitled to, and agreeing to extra terms like sharing deferment data with the credit agencies that was never part of the original agreements.
    Last edited by pbs84; 23-03-2014 at 8:08 PM.
    • ericctheking
    • By ericctheking 24th Mar 14, 11:32 AM
    • 324 Posts
    • 264 Thanks
    Do you think there is any comeback for people that already signed the deferment forms?
    Can they retake away the consent for erudio (arrow) to share information with credit agencies?
  • no2erudio
    I agree with most of that except a few things.

    My loan agreements certainly say that I'm obliged to give them up to date bank details for a direct debit, unless they agree otherwise.

    Also requesting copies of bank statement may be reasonable if there is no other way to prove gross income. Although you would be entitled to blank out parts that are not relevent.
    Originally posted by pbs84
    Hi there, the blog you mentioned is my effort to examine the issues affecting people with these pre-1998 student loans and to look at the ways in which one might best deal with Erudio.

    Having read the Credit Agreement that came from the Student Loans Company, I am of the opinion that it is not a legal requirement to keep the loan manager (Erudio) informed of the borrower's current bank account or to have a direct debit in force. Speaking from experience, I cancelled my direct debit & bank account years ago without any backlash due to the fact that I earn under the threshold monthly allowance. The Student Loans Company knew that i had done this and never penalised me for this action. I agree that if I should become eligible to repay the loan it would be my responsibility to arrange a method of repayment with Erudio.

    You can read more information about this matter on my blog post: Do I have to give Erudio my current bank details and set-up a direct debit on my account?

    all the best,
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