Hi,

I've taken on a professional career development loan with Co-op in 2015 of £8,500 to fund a MSc and can no longer afford the repayments of almost £300 per month as initially agreed and signed contract. I still owe just over £5,000.

I've been explained by the bank that I cannot lower the monthly repayments and can only default on my payments and that after 2 missed/ defaulted payments Co-op will pass on my debt to Wescot debt collectors.

Despite of written warnings on every page of my loan agreement stating that should I default on payments at any point my credit history may be "seriously affected", I have been reassured by co-op on several occassions that although they cannot put this into writing to me they can guarantee that as it's a "government backed loan" as opposed to a normal loan and therefore my credit history will not be affected as I default on payments to Co-op Or even when they pass on my debt to Wescot and then even if I miss the agreed payments with Wescot.

Seems too good to be true??

My question is,

can anyone confirm that this is in fact true for career development loans not effecting credit histories upon defaulted payments with the bank and Wescot?

So lost and a bit anxious in defaulting without any written confirmation from the bank on this.

..Any advice would be much appreciated!

Many thanks in advance!

not 100% sure

you'd have to read the T&C's they gave you

as a side note:

wetcloths are a DCA

a dca are NOT BAILIFFS

and have

ZERO legal powers.

deal /pay the co-op directly only.

Hi dx,

Thanks for your reply.

All it says in T&C is that should I default or miss payment my credit history "may be seriously effected".

I've now spoken to co-op on 4 different occassions each time they have reassured me that even though they cannot put this in writing the telephone conversations are recorded, they have put this in their notes stating that my credit history won't be effected at any point because its a "government backed loan" and that they also spoke to the Manager who also re-confirmed this and that this is also in their notes - they cannot provide me a copy of course!

So feeling quite uneasy about going ahead with missing payments..even though cannot afford paying such an amount monthly. Also know nothing about DCAs and how they work and what to expect...

you ignore the dca !!

they are NOT bailiffs

and NEVER ever talk on the phone to a dca either.

I think eitherway its gonna get defaulted

if not by the co-op

but by a debt buyer if they sell it on.

dx

Serve a Subject Access Request on Co-op?

https://www.gov.uk/career-development-loans/repayments-and-interest

Hi MiloSaint,

My sister also had a CDL with the Co-Optaken out in 2011, and like yourself couldn't afford the repayments, no job, no income.... etc..

So, obviously, she stopped her repayments sometime around 2012/2013 I think it was. I've got a thread somewhere about it here.

We tried dealing with Co-Op directly, and they were not helpful at all. We got letters from DCA's for a while and then all of a sudden everything stopped.

As far as I'm aware, there is nothing on her Credit File [i'd need to ask her to double check], but it's unlikely to be, as she's never been rejected for any credit applications she's made over the last few years.

From what I understand, as it's Government back, the Co-Op will get their money as they have an indemnity, regardless of whether it's paid or not.

So, whilst I can't definitively 'confirm' whether it's true or not, from personal experience, via my sister, what they have said, might be true.

Regards

here:

https://www.consumeractiongroup.co.uk/forum/showthread.php?381538-Co-Op-CDL-Career-Development-Loan

Hi Milo and welcome to CAG

You made 2 posts on other folks' old threads and these have been removed as it's best your case is dealt with here on your own thread. Info about a case last discussed in 2011 isn't going to help you much !

Hi MiloSaint,

 

My sister also had a CDL with the Co-Optaken out in 2011, and like yourself couldn't afford the repayments, no job, no income.... etc..

 

So, obviously, she stopped her repayments sometime around 2012/2013 I think it was. I've got a thread somewhere about it here.

 

We tried dealing with Co-Op directly, and they were not helpful at all. We got letters from DCA's for a while and then all of a sudden everything stopped.

 

As far as I'm aware, there is nothing on her Credit File [i'd need to ask her to double check], but it's unlikely to be, as she's never been rejected for any credit applications she's made over the last few years.

 

From what I understand, as it's Government back, the Co-Op will get their money as they have an indemnity, regardless of whether it's paid or not.

 

So, whilst I can't definitively 'confirm' whether it's true or not, from personal experience, via my sister, what they have said, might be true.

 

Regards

Hi Cookie rocks,

Thanks so much for the response, I did read your 2011 thread and it's reassuring to know that your sister sisnce then has been able to successfully apply for credit after defaulting on ger CDL payments. Im trying to get some advcie / confirmation from CAB too but this is promising.

Thanks again,

MS

i would take what CAB say with a large pinch of salt if it differs from what you are reading here MS

certainly don't agree for them to do anything without checking here 1st.

esp if they want to contact people..

MS

No probs.

I just want to confirm nothing is on her Credit File and nothing has been re: Co-Op/ CDL.

I also agree with DX re: CAB

From experience, they are very quick to start contacting and writing to companies and before you know it, you'll be in a payment plan.

My folks got royally shafted like this, it's only when I got whiff of what was going on did things actually get sorted, 80% of debts were SB or unenforceable.

So, by all means speak to them, but be wary of signing/ authorising anything for them.

Kind regards

Hiya,

Wondering if anyone would have any knowledge/ advice on this?

I couldn't keep up with my career development loan repayments last year after paying off half the loan (still owing a few thousand ££s though) and co-op bank froze the account and explained they will have to pass on the loan to Wescot debt collection agency and assured me that my credit history and/ or rating will not be affected as this is a "government backed loan".

Wescot are now contacting me saying they are "working on behalf of Co-op" and threatening my credit rating in letter stating that by contacting them I would be making "positive steps that might improve your credit rating".

I am yet to contact them back.

Since Wescot has been contacting me the last couple of weeks, any record of the career development loan and the unpaid amount has dissapeared from my account.

I heard elsewhere before that CDL is already paid by the government and the bank is essentially only the "middle man" as government can't loan the money to individuals directly hence why the banks aren't fussed when loan isn't paid back.

I also heard conflicting information regarding this having a negative impact on my credit history; some say that as long as I don't make any repayment agreement with a DCA and then defer on payments then my credit history won't be affected but I also read that just by having a DCA show up on my credit report will deter a lot of lenders lending to me now. So I'm now very confused as to;

1) Are Wescot really acting on behalf of co-op as they state or have actually bought the loan off of them?

2) Is my credit history now likely to be worse just by DCA name appearing somewhere within my records?

I will try take out a credit report to check in the meantime.

3) Am I better off ignoring the DCA since the loan essentially was already paid for by the government in the 1st place and there is now no record of the loan on my co-op account? Or am I better off making a manageable repayment plan with DCA and paying off the rest of the loan?

Any advice on this would be much appreciated!

MS

Wescot dont buy debts.....just chase for their client  COOP...they cant touch or add anything your credit rating...only COOP can do that.

https://www.co-operativebank.co.uk/loans/career-development-loan

Andy

threads merged yet again.

third time you've asked this question

third time you've had the same answer in reply.

dx