Student Loan Company... How are they allowed to get away with it?!!

[Jetflex]

Hi there

I had obtained three Income Contigent Loans for the years 98-99-2000. After graduation, money was deducted at source of salary to pay these loans. In 2005 I confirmed with the SLC that I had repaid all my ICR loans. Several years later, 2008,The Company discovered that this was not the case. The 98 loan had not been matched with those for 99 - 2000. So, without any notification the company requested HMRC deduct ICR loan reypayments at source from my salary. When I attempted to ascertain why money was being deducted at source by HMRC, it was only with considerable difficulty that I was finally informed about the 'matching' of an oustanding loan. On one occasion I was left 'on hold' by SLC for over 40 minutes until the phone went dead. Nobody semed to know anything! In fact, when I requested previous loan statements I was told I needed to make an application under the Data Protection Act. Which I did.
1. The Company do not dispute I was informed more than once in 2005 my ICL account was cleared
2. The 98 loan has continued to accrue interest whilst it was not 'matched' to my account' since 2005
3. The Company cannot tell me how much I owe, as they cannot calculate how much has been deducted from my salary as loan payments since the begining of 2008 and have refused to issue me with a statement.
4. The company does not disput that no notification of intent to deduct payments from my salary or statement for the 98 loan was issued.

Having 9% of income over 15K deducted at source came as a shock. It has affected my abilty to remortgage and I went into the red for the first time in ten years (as money which I believed would be in my account had ben taken from my slary without my knowledge).
The problem is that Student Loans is not governed by the banking services, as SLC gleefully tell me.
It feels as if I am being fleeced and can do nothing about it.
Can anybody help.

[Pinky69]

You have tried to resolve the dispute through the department dealing with your case and that hasn't worked so now you can go on to the next stage and make a formal complaint to the Student Loans Company compaints department. Go to their website and it tells you how to complain - there is an email address to contact. You can ask them for exact details of why you were asked for more money when you had been informed the loans had been cleared, details of what you have paid and details of how much has still to be paid.

[Jetflex]

Hi thanks for the reply.
I have already gone down the formal complaint route. It has now reached the 'executive stage'. I was told that to get account statements I need to apply under the Freedom of Information Act Act. Which I have done (40 days). Apperently the 98 loan was not matched to the 99-2000 loans. When the Student Loan Company tried to get payment in 2003, because the 99- 2000 loans where already being payed off through my salary, the system assumed that the 98 loan belonged to a different person. In 2007 they made some system improvments and my 98 loan showed up. They then made a request to have money stopped at source by Revenue people. Of course they didn't make any attempt to communicate with me. No statement, no nothing. I am so angry as I just trusted them to take what they were owed and when they told me it was all cleared, I went and got a motgage. I guess from one point of view I should have kept tabs on what was owed, but each repayment was different as my salary is not constant. However, I phoned more than once to check the outstanding balance and get an idead of when the (amalgamated loan) would be paid off. As said, I was assured that the loan had been paid off, but now they are saying that does not matter as all three years were not amalgamated. But, that is not my fault.

[maroondevo52]

Hi, Jetflex.

Sorry, I'm not too clued up about Student Loan Companies.
Hopefully Pinky will be able to help you.



Regards.

Scott.

[Pinky69]

I understand how annoyed you must be and it shouldn't be too difficult for the loan company to tell you what was due in total, what has already been paid and what is still due to be paid. Do you have any paperwork from when you applied or statements from when you were paying the 99/2000 bill? At the end of the day the loan pertaining to 98 has to be paid but you have a right to know how what the amount was, how much you hace already paid towards it and how much has still to be paid. I think if there is nothing forthcoming at the executive stage, it is worthy of referal to your MP.

[Jetflex]

Thanks for the empathy:o. I was hoping, given their catalogue of errors I would not have to repay. After all, if a bank told you that you had repaid your debts and then almost three years later said , no you haven't. Could they ask for the money? The bottom line is that I can't afford it. What makes me crazy is that I never tried in anyway to avoid paying off the loan. If they had done the paperwork correctly it would have been done and dusted. As it is, almost three years additional interest has been charged. They can't tell me how much I have paid off the loan as the revenue people don't report that until April. I am awaiting statements, but I don't know if that will help. I never really apid much attention to waht was in them! I just assumed they were taking the money they were due. I have a loan that was due to be paid off in August, I can't do this with money being taken out of my account. But, better to know now that I have to pay rather than get angry and waste time fighting it. I just think their error is going to cost me in extending other lines of credit and not being able to refinance my mortage becuase it reduces my disposable income by 10%. Anyhow, thank you very much for your advice. James

[maroondevo52]

Hi, James.

I've 'flagged up' your thread, hopefully a Mod or Site-Helper will come along and help you.


Regards.

Scott.

[Pinky69]

I would certainly query the extra interest over the 3 years when you were led to believe the loan had been cleared. That wasn't a period when you were avoiding payment - that was a period when you believed you had fully paid the loan - confirmed by them - and it was their fault that the loan hadn't been accumulated properly and they omitted to request one year's payments. That is a matter you can raise with their complaints department and your MP if necessary.

[Jetflex]

had hoped the Consumer Credit Act might help

Under the new provisions a court is able to decide that a relationship between a lender and a borrower is unfair to the borrower because of the following:
the terms of the credit agreement or any related agreement;
the way in which the lender has exercised or enforced its rights under the agreement or a related agreement;
any other act or omission of the lender either before or after the date of the agreement or related agreement.

When deciding whether an agreement is unfair the court will consider all the circumstances it believes to be relevant and the fact that the relationship between the lender and the borrower is at an end does not prevent the court from making a determination.

[Pinky69]

Loans after September 1998 are not covered by the CCA.

[Pinky69]

Sorry - I should have made myself clearer - loans from the Student Loan Company after September 1998 are not covered by CCA.

[Jetflex]

Thanks Pinky
I just read that somewhere
But in their own guidlines SLC state
What you can expect from the SLC... (pg 23)
*Interim and yearly statements to tell you what you owe
* Annual statements
*Details of changes to interest
* Help and advice on your loan repayments
P16
When you are comming to the end of your loan repayment period you should contact the SLC etc (which is what I did)

Smart move not to give protection to students under the CCA