I'm looking for advice regarding a court claim being made against me by Erudio regarding an old student loan.
I've received a claim through the Scottish Simple Procedure process for almost £4000 regarding a loan taken out in 1999.
The original loan would have been for approximately £1800 to my best recollection.
I can't say for certain at the moment (will need to call SLC to verify) when the last time I deferred was
- it was a long time ago and I've no recollection of sending anything at all to Erudio at any point, nor was I aware that they required a deferment form as well.
I had been paying off my other student loans taken out a few years after this one (04, 05 and 06) through my earnings to the SLC even though I was under the repayment threshold at the time, and I've only earned over the repayment threshold for just over the past 2 years. I was happy enough for paying them off in this manner so I had never felt the need to continue to defer with the SLC, and never really paid much attention to the statements sent by Erudio as I'd incorrectly assumed that they would be paid through this manner as well.
At this point, I have recently received a letter from the SLC stating that my loan repayments are coming to an end very soon, but it would appear that this hasn't made any payments towards the loan that Erudio have taken over.
I've been reading through the topics posted over the past couple of weeks for and reading about others in similar situations to try and ascertain the best plan of action.
Particulars of claim: (copied directly from the claim, account numbers and monetary values redacted)
Name the issuing court: Edinburgh Sheriff Court
Who Is The Claimant: Erudio Student Loans
Who Are the Solicitors: Shoosmiths LLC
What type of action? (Simple/Ordinary): Simple
1.The claimants are a finance company which inter alia operates the business of debt purchasing. By virtue of a debt purchase agreement ("the Agreement") between claimants and Student Loans Company ("the Original Owner") dated 22/11/13,
2.the claimant acquired title to and was assigned the right to payment in respect of all debts and other monetary claims of any nature due at the date of agreement, and in particular in relation to the the contract hereinafter condescended upon. The said assignation was intimated to the defendant by way of written notice on or around 22/11/2013.
3.The agreement between the respondent and the original owner upon which this action is based was regulated under the Consumer Credit Act 1974. Further information in relation to that agreement is contained in section D$, where we set out the sums due and the basis upon which they fell due. As at the date thereof, the sum due in terms if the said agreement amounts to £xxxx.xx.
1. The said contract agreement between the Original Owner and the respondent is a regulated credit agreement in terms of section 189 of the Consumer Credit Act 1974. It is also regulated by the relevant Education (Student Loans) Acts and related regulations. It is dated 26/10/1999, and relates to a Student Loan Agreement with the account number xxxxxxxxxxxxxxxx.
2.The said agreement required the respondent, following completion of their course of study, and upon meeting certain conditions relating inter alia to their income , to make payment of the sums due by the way of consecutive monthly installments. The said installments were required to commence in the April following the respondent meeting certain income criteria and were to be based upon a percentage of the respondent's income over the said threshold amount.
3.It was a term of said agreement that a failure to meet any installment on a due date would render the account in default and would entitle the claimant to serve a notice of default on the respondent requiring the respondent to remedy the breach within 14 days which failing the claimant would be entitled to demand repayment of the loan in full.
4.On or around 22/04/2019 the respondent failed to make payment of the sum which had fallen due and the said account thereby entered into default.
A default notice was issued to the Respndent on 22/04/19.
The Respondent failed to remedy the default following upon service of the said notice and the account was terminated in accordance with that notice.
The account remains in default. The sum due in thereunder is due and payable now.
5.As at the date hereof, the sum due in the terms of said agreement amounts to £xxxx.xx.
In terms of the Agreement, and the written notice hereinbefore condescendedupon, the right to receive payment of the sums due in terms of the said account vests in the Claimant.
Date of raised claim [or court stamp date from writ] :- 23rd Jan 2020
Last Date Of Service [or from form 07]:- 17/02/2020 - this was delivered before then.
Last Date For Response [or from form 07]:- 09/03/2020
What Documents are listed in Box E2:[or in your form requesting the same?]
A copy of the credit agreement, statements of account and notice of assignation will be produced in any defended process to follow hereon.
Is the claim for ......an Overdraft, credit card, loan account, HP Agreement, Catalogue or mobile phone debt? :- Student Loan
BOX D5 what has the claimant stated: IN FULL or [Pleas in law from the writ] I want the court to order the respondent to pay me the sum of £xxxx.xx
from your knowledge: answer the following:
When did you enter into the original agreement before or after 2007? After 2007, started the course approx 1998, loan taken out 26/10/1999 as per the info they gave me
Has the claim been issued by the original creditor or was the account assigned and it is the Debt purchaser who has issued the claim.:- Debt purchaser (Erudio), Shoosmiths LLP
Were you aware the account had been assigned – did you receive a Notice of Assignment? Not to my recollection although I was aware that Erudio had been sending statements regarding a student loan
Did you receive a Default Notice from the original creditor? Possibly but not to my knowledge
Have you been receiving statutory notices headed “Notice of Default sums” – at least once a year ? Possibly but not to my knowledge
When was you last payment:- Uncertain, will need to confirm with SLC if payments made towards this loan, no payments ever made to Erudio to the best of my recollection
Why did you cease payments:- Was paying off student loans through earnings, never realised that this one was being treated seperately
Was there a dispute with the original creditor that remains unresolved? Not to my knowledge, SLC had taken payment through my earnings even though I was below the threshold as I hadn't deferred but I was happy to proceed with this.
Did you communicate any financial problems to the original creditor and make any attempt to enter into a debt management plan? No
From the previous advice given, I'll get the CCA request done and also the CPR 34.14.
The amount claimed seems very high and I've got no breakdown of how they have come to this figure.
I've also been reading through the threads about how to set out the defence
- the PercyPercy thread is of particular interest as there are similarities between the two, as I never gave any paperwork sent to me due attention and have ended up in this situation as a result.
Thanks in advance, and I'll supply additional info as quickly as possible if required.