Erudio Student Loans are being odd - demanding £3k in 14 days

Articmonkey · 16 October 2018 at 6:18PM

I have had numerous issues with Erudio, as is pretty usual with this shower regarding their distribution of paperwork. My physically abusive ex husband withheld my post for a year in 2014-15, when I left him so my account went into arrears as I couldn't defer as I didn't know it had been sold.. Eventually sorted it out via the police and paid Erudio £100 a month (whilst in deferment) to pay off the arrears and then my income went over the deferment threshold so I have been paying the contractual amount (that they set) of £139.48 for 20 months. Today I received an aggressively worded letter from them terminating my account and demanding £3055.87 by 07/11/18 to pay off the arrears. The remaining balance is £3905.33. Citing 'You have broken the terms of your agreement because you failed to pay your repayments on time and in accordance with the terms of the agreement.'

All my repayments have been via direct debit and on time. I am 40 next year - I think this is a response to that as I think they are trying to ensure I do not get the loan wiped somehow.

I have emailed them to cover myself in writing as I know you need to with this lot.

I have just rang them too as I wanted to check that they hadn't made a mistake. Nope, they are terminating the contract. The man on the phone kept repeating that as I was in arrears I had broken terms of contract and they have made the decision to terminate my account. When I asked if they took me to court would any judge agree that I was not doing enough to settle my account by paying £140.00 he said 'We are not saying you are not doing enough'? So I asked how they propose to proceed given I don't have 3K to pay in 14 days and he said after they have terminated the account they would seek to 'continue to work with' me. When I asked why a monthly payment plan of £140 isn't considered as 'working with' me he said because that isn't paying off my arrears. I actually would be eligible for deferment now as my income is below the threshold this year...

This is extremely odd. I think they are gearing up for some further dodgy practice. Why would they terminate the account of someone who is already paying them monthly, on time and they are earning interest? Any ideas anyone? He wouldn't give me an answer when I asked what the proposal is after terminating my account. I am at the point now that I have a mortgage and a steady monthly income so I am tempted to cancel my DD and let them take me to court for the 3k. See how much a judge thinks I should pay them and deem that £140 a month isn't enough! Any ideas anyone?

liuhutOz · 17 October 2018 at 4:22AM

Just saw you haven't had a reply, you might be better posting over on the Debt Free Wannabe board.

Lungboy · 17 October 2018 at 6:58AM

If you're in arrears then I think the t&C's allow them to recall the full loan. It's unusual but there have been other cases of them doing it recently.

Articmonkey · 17 October 2018 at 7:04AM

Thanks for the replies. I do not have £3045 and won't get access to that amount of money as I have just had a mortgage offer. What next steps can I take?

Nasqueron · 17 October 2018 at 10:21AM

Student loans don't get wiped at 40, under the older system they are live until you are 65 iirc, under the newer versions it lasts 30 years - reaching 40 at most you have been graduated 19-20 years so debt isn't going to be wiped

Lungboy · 18 October 2018 at 9:52AM

Nasqueron wrote: »

Student loans don't get wiped at 40, under the older system they are live until you are 65 iirc, under the newer versions it lasts 30 years - reaching 40 at most you have been graduated 19-20 years so debt isn't going to be wiped

If Erudio owns the OPs loan then it's the mortgage style loan, and those get wiped when you hit 50 or 25 years after the loan became due (so straight after the final payment was received).

Nasqueron · 18 October 2018 at 11:35AM

Lungboy wrote: »

If Erudio owns the OPs loan then it's the mortgage style loan, and those get wiped when you hit 50 or 25 years after the loan became due (so straight after the final payment was received).

So yes, not wiped at 40 as stated and won't be cleared until the rest of the balance is paid or 25 years after loan became due - OP won't have hit either as they are coming up to 40 and would thus have graduated 19-20 years ago when leaving uni around 20/21

OP is being chased for arrears as well as the final bit of payment thus nothing will be wiped when they turn 40 as they wondered, hence it's just a coincidence

Articmonkey · 18 October 2018 at 11:53AM

No, you are right. Nothing will be wiped anyway at 50, as I am in arrears.

I don't even mind paying it. What I mind is that they issued a default notice 2 years ago, agreed a repayment plan to clear some arrears and then the contractual amount, left me to it to pay it off and just because I asked to change my DD date they have called the amount in full and are terminating the agreement. Why didn't they just do that at the point of default?

I have a friend who is in contract law and she is looking into whether they waived the right to call in and terminate when the agreed the repayments. They set the amounts and the dates etc. She seems to think when I started my contractual monthly repayments (when I went over the deferment threshold) we can argue that they entered into a new contact by accepting and setting the contractual payment amount and by not issuing a further default notice, they have not followed process as they have jumped straight to demand in full. She also thinks they would be hard pushed to get a judge to agree with them that I am not doing enough to settle my debt when I am not taking up the option to defer even though I am now under the threshold and I have maintained monthly repayments to a sum of £2236.59. She is also mentioning unfair treatment as they are refusing to give a reason.

I am tempted to offer to pay the balance of one loan at £1100 in order to get them to accept partial settlement and close the account. I'll have to take out a loan at work to do that though.

Erudio Student Loans are being odd - demanding £3k in 14 days

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