Nurselayer v Student Loans Company

[Nurselayer]

Is it 30 days from default or before that they have to SEND them or 30 days or before that I have to have RECEIVED them?

[national treasurer]

Fraternal Greetings from the National Union of Students!

First off, to clear this up. DfES says that the income-contingent loans available to students currently (and to new students since Sept 199 are low cost loans and thus not governed by the CCA:

http://www.studentsupportdirect.co.u...TO%20T%26C.PDF

What low cost loans are is outlined here:
http://www.oft.gov.uk/NR/rdonlyres/7BEE730B-3BA6-4F34-81E4-A046F78DB131/0/oft140.pdf
See p7 for a definition.

Which as they don't require a credit agreement there isn't one to provide and thus the loan would remain outstanding.

However, old style loans (available to new students Sept 1990 - Aug 199 are governed by the CCA and I remember signing the credit agreement myself, so this procedure should be valid.

We have been looking into what this would mean.

We've figured out that, yes, the repayment of the loan would not be necessary whilst the credit agreement has not been provided, but cannot see any reason as to why this would mean the debt is effectively wiped out.

Yes, the SLC may well have been committing a criminal offence, but that does not necessarily mean that the loan gets written off, or indeed that the loan does not become enforcable again if the credit agreement is found at a later date.

It is quite possible we are missing something that is covered in another act or in a legal precedent somewhere. Can anyone point me in the right direction?

I would also like to take issue with Stonelaughter, who seems totally unaware of the practices and incompetences of the Student Loans Company and the misery they cause. I paid my loan off in full a couple of years ago when I sold my house, partially for the reason that I would never have to deal with the incompetents ever again on a personal level. I could bore anyone for hours with the casework which we have handled in the past regarding the way they operate.

[national treasurer]

That should be an eight. No idea why the smiley appeared!

[Nurselayer]

Have you read through this thread Loan Company Cannot Supply The Original Agreement ? It shows where other lenders who've not been able to supply the original agreement within the terms of the CCA1974 have used this technique to get loans written off.

[national treasurer]

I was just reading through it again.

It's about a process that probably ultimately ends up in court.

With that in mind, have people actually gone to court with this defence and lost?

I am assuming that each case will be taken on an individual basis, where the judge/magistrate will look at the actions etc of both parties involved, or is it that failure to provide the agreement within the set timetable is considered an absolute, unquestionable defence?

[Movingon]

Originally Posted by national treasurer

I am assuming that each case will be taken on an individual basis, where the judge/magistrate will look at the actions etc of both parties involved, or is it that failure to provide the agreement within the set timetable is considered an absolute, unquestionable defence?

The lack of a properly executed agreement is an absolute, complete and total defence to any case brought against you for non-payment. HOWEVER if the document is produced LATER than the limits, they would be able to continue pushing for payment; but having committed a criminal offence in relation to it, they would be stupid to pursue you; the fact of the offence would render it extremely unlikely that a Judge would find in their favour.

I will remind everyone again that the process is designed not for you to squirm out of legitimate debt, but to get collection agents off your back when you genuinely don't recognise the debt they're chasing you for, or when you believe it to be statute barred, or when you believe you have already cleared the original debt... etc etc etc.

[Nurselayer]

I have received a letter from Smith Lawson & Company - that is the collection arm of the Student Loans Company Ltd. They are actually part of the same Ltd company but just use a different name to try to scare you into paying up.

Anyway, the letter from SLC (luckily they have the same initials too!) was asking me to make a payment regarding one of my loans. Here is the reply that I intend to send. I would appreciate your comments/advice on whether I've worded the letter correctly.

Smith Lawson & Company
21 Thomas Street
Bristol
BS1 6JS

Dear Mrs D Hay

Re: Ref XXXXXXXXX

Further to your letter of the 17th October 2006 requesting payment for The Student Loans Company Ltd please be advised that I do not recognise any debt to the Student Loans Company Ltd.

I wrote to you (the Student Loans Company Ltd) on 25th July via recorded delivery, requesting a true copy of the signed agreement under the terms of the Secs. 77(1) and 78(1) of the CCA 1974,enclosing the statutory maximum fee of £1 in the form of a cheque.

I have not been provided with a signed agreement under the consumer credit act, I have not been provided with a statement of account, and I have not been provided with a true copy of the deed of assignment, despite my properly formatted and paid for request.

I therefore do not acknowledge any debt to the Student Loans Company.

I will not be making any payments against this "debt" as it is unenforceable. I also believe that you may have committed a criminal offence under the terms of the Consumer Credit Act, and non compliance with the original request is therefore a complete defence to any court claim that is issued.

As I believe that you may have broken the law this will result in a report being submitted to the relevant statutory authorities.

I require repayment in full of any monies taken by yourselves in connection with these loans within 14 days or I shall begin a claim against you for the full amounts plus interest plus my costs and without further notice.

Yours sincerely

Nurselayer

So how's that sound? Or would I be better off just sending a one line reply saying "I do not acknowledge any debt to the Student Loans Company Ltd" without giving a reason?

Thanks in advance for your help

[Movingon]

Nursey that's fab - except (isn't there always an "except"? LOL)

Firstly it's s77(1) of the Consumer Credit Act 1974 (As Amended) - s78(1) deals with rolling credit and not loans, and "CCA 1974" means nothing.

Also, there will be a "Deed of Assignment" only in cases where the "debt" has been transferred to a DCA and you're writing to the DCA in question.

Otherwise? Sounds great

[Giveitback]

Sounds good to me. they didn't send the copies? Wow. Don't know what's more surprising. That they sent mine, or that they didn't send you any.

bonne chance

[Nurselayer]

Thanks Stonelaughter, and Giveitback,

Here is the final copy (unless you find any further errors in it) which I'll be sending to them by recorded mail tomorrow. I added in a bit at the bottom about them responding to accept that I now owe them nothing.


Smith Lawson & Company
21 Thomas Street
Bristol
BS1 6JS

Dear Mrs D Hay

Re: Ref XXXXXXX

Further to your letter of the 17th October 2006 requesting payment for The Student Loans Company Ltd please be advised that I do not recognise any debt to the Student Loans Company Ltd.

I wrote to you (the Student Loans Company Ltd) on 25th July via recorded delivery, requesting a true copy of the signed agreement under the terms of s.77(1) of the Consumer Credit Act 1974 (As Amended),enclosing the statutory maximum fee of £1 in the form of a cheque.

I have not been provided with a signed agreement under the consumer credit act, and I have not been provided with a statement of account, despite my properly formatted and paid for request.

I therefore do not acknowledge any debt to the Student Loans Company.

I will not be making any payments against this "debt" as it is unenforceable. I also believe that you may have committed a criminal offence under the terms of the Consumer Credit Act, and non compliance with the original request is therefore a complete defence to any court claim that is issued.

As I believe that you may have broken the law this will result in a report being submitted to the relevant statutory authorities.

I require repayment in full of any monies taken by yourselves in connection with these loans within 14 days or I shall begin a claim against you for the full amounts plus interest plus my costs and without further notice.

Please acknowledge that you have received this letter and that you recognise that I have no liability to yourselves.


Yours sincerely

Nurselayer

[Movingon]

Excellent. **Nods vigourously**

[blackrain]

So s78(1) is the section that should be used when requesting Credit Card agreements?

[Movingon]

Originally Posted by blackrain

So s78(1) is the section that should be used when requesting Credit Card agreements?

yep - or other "rolling credit" ideas - budget accounts and what have you.

[Nurselayer]

Received my annual statements of my accounts today. I think I'll resend the letter telling them that I do not recognise any of the loans. They have apparently added £120 of administrative charges to one of the accounts this year! I will put the letter up on here before I send it. The amount in total comes to over £7500 over 4 loans. This is an amount that I think is worth fighting for! Regarding the Small Claims Court, if it ever goes to court, will they treat each loan seperately or would they lump them all together? All four loans were made at different times and each has separate calculations of interest etc so I'm imagining that they would treat each loan separately. Can anyone confirm?

[onlymepault]

saying "i don,t recognise any of theese loans" is a denial... you would be better stating that "theese loans are in dispute"(until such times that they provide you with a copy of the origional loan agreement) and therefore stopping them from persuing you or placing default or trying to obtaine ccj.you seem to steaming in there be sure to follow all steps and time scales..p.s best of luck

[Nurselayer]

Ok, here's the letter that I'll be sending to them tomorrow following the receipt of my annual statement. I've sent one for each of my loans. Please could someone give me the gist of what to write to the Glasgow Trading Standards office regarding this. I have said that I'll report the SLC for non compliance with the CCA 1974 and so I had better do it!


Student Loans Company Ltd
100 Bothwell St
Glasgow G2 7JD

Dear Sir or Madam

Re: Ref XXXXXXX

Further to the annual statement dated September 2006 that you sent to me regarding the above loan please be advised that I do not recognise any debt to the Student Loans Company Ltd.

I wrote to you (the Student Loans Company Ltd) on 25th July via recorded delivery, requesting a true copy of the signed agreement under the terms of s.77(1) of the Consumer Credit Act 1974 (As Amended),enclosing the statutory maximum fee of £1 in the form of a cheque.

I have not been provided with a signed agreement under the consumer credit act, and I have not been provided with a full statement of account, despite my properly formatted and paid for request.

I therefore do not acknowledge any debt to the Student Loans Company.

I will not be making any payments against this "debt" as it is unenforceable. I also believe that you may have committed a criminal offence under the terms of the Consumer Credit Act, and non compliance with the original request is therefore a complete defence to any court claim that is issued.

As I believe that you may have broken the law this will result in a report being submitted to the relevant statutory authorities.

I require repayment in full of any monies taken by yourselves in connection with these loans within 14 days or I shall begin a claim against you for the full amounts plus interest plus my costs and without further notice.

Please acknowledge that you have received this letter and that you recognise that I have no liability to yourselves.


Yours faithfully



Nurselayer

[noomill060]

Any news from SLC?