Career Development Loans With Barclays

[la2006]

I’m keeping the story brief

in the below case would it be a debtor- creditor-supplier agreement.

Some people say the argument in valid and there is consumer protection - under the CCA, the credit providers are jointly liable for the delivery of the contract which is the sole purpose of a CDL.

the Credit provider can not continue to collect the money owed for a service no longer provided, but that the student can sue them to get back the monies already paid for the broken contract

However Barclays say it not the case. I am a little confused whether Section 75 of the Consumer Credit Act.

I applied to a job advertised by TP (the training provider)

I went for a ‘interview’ and was hard sold a course/programme through lies, false promises by TP

TP stated the course was part of a government training scheme and promoted Barclays Bank (B) CDL.

It was TP practice to introduce individuals needing finance to B

TP also has a number of B CDL loan forms (most likely the Learning skills council supplied)

TP is also stated in the ‘terms and conditions’/information pack, to use B.

TP is also a business client of B, all B CDLs was paid directly into TP Barclays Bank account, so all the funds given out by Barclays remained with Barclays. I wonder about the extras the TP Barclays Bank account would have got?

If TP had never promoted B CDLs the majority of ‘students’ would have never know about theses loans.

CDLs are publicised via the CDL website on the Department's website, by learning providers, and participating banks.

Information is also available via learn direct, Learning and Skills Councils, Information Advice and Guidance partnerships and various publications , the BBC's Career Essentials booklet and CDL advertising posters sent to learning providers . Margaret Hodge Secretary of State for Education and Skills stated this in 2004. ( the time I took out CDL)

Barclay argument partly relies that Learning provider do not promote CDLs to students, which is untrue as the TP promoted Barclays. B does no active marketing of CDLs but rely on passive supply of business from the TPs.

I had no choice but to agree for B to pay all course fees up front to the TP directly. And then the company closed down. The Banks states that a debtor-creditor-supplier arrangements does not apply.

Barclays Bank are in partnership with Learning Skills Council .

The TP has to sign conditions with the LSC to accept CDL from the Banks

and for the Banks to give loan to TP. And the Bank to have to check the TP i of the CDL register before giving out the loan to them.

Is there any way that my example/experience is based on a debtor-creditor-supplier arrangements. Or is it a debtor-creditor.

Or are there any other Consumer protection laws available.

The News article below - relates to the company I was with.

...........................................

Students lose millions in loan scam

MPs will investigate the scandal of failed firms that left clients with huge debts and no tuition

A government-backed student loan scheme has been targeted by fraudsters, leaving victims with no tuition and debts totalling millions of pounds.

the government failed to vet companies registered for the Career Development Loan (CDL) scheme, allowing criminals and failing businesses to profit at the expense of students.

Banks handing out the loans and industry leaders have expressed dismay that companies with poor track records were allowed to join the scheme. A source inside one bank admitted that it would consider pulling out of the scheme if procedures were not improved.

A whistleblower who worked at four of the companies admitted they used the fact they were 'government-backed' to hard-sell courses and then accrue money through loans. Once the courses began they did not care if the students dropped out, he said, with some having a 90 per cent

The council was forced into removing Britannia IT Training from its register after student complaints. The firm went into administration last October( 2006) leaving behind 600 students without training - 424 of them had loans to repay totalling around £2.5m.

Sheerman said it was wrong that people left without training should have to repay the loans: 'The government and the LSC should be responsible.' However, he highlighted the fact that many others had benefited from the scheme.

COMPANY COLLAPSE COSTS STUDENTS £1 MILLION

More than 600 students in London and the Home Counties are owed sums up to £8,000, totalling over £1 million after the collapse of Britannia IT Training of Belsize Road, Kilburn, London.

The company offered students a range of certified IT courses linked to such well-known names as Microsoft and Cisco and supported with loans made under the Learning and Skills Council’s (LSC) Career Development Loans (CDL) scheme.

According to the administrators report filed at Companies House the company’s CDL registration was withdrawn by LSC in November 2005 after concerns arose over the way Britannia operated the scheme, an aspect Britannia blame for their collapse.

Britannia’s entry in the current Training Managers Year Book claims a turnover of £6 million and over 100 employees. In fact they employed 23 and in the year ending 31 March 2005 their turnover was £2.37 million, falling to £1.6 million in the year ending 31 March 2006. The current deficiency, according to the official figures is £1.8 million, most of which is owed to former students on courses. (from CDLs)

Does anyone know the answer to the above posts concerning joint liability?

[slick132]

HI LA,

 

By the looks of the article, it's quite old so I'd expect you'd have heard if anyone else was made responsible for money owed to students after the collapse of Britannia.

[Monty2007]

Hi

 

As you infer, it is a complex case and given the number of victims there is possibly a law firm looking at some kind of class action litigation.

From what you say your contract was with the provider of the training/education but the agreement for services brings in both the lender (Barclays) and the Government hence you potentially have a case against all three.

My advice would be to:

(i) Petition you MP, cite the fact that you would have not have taken the course (and investment risk) had the scheme not been blatantly backed by the Government

(ii) Send personal letters every month to the main board of Barclays Bank and their new shareholders in the Gulf.

(iii) Write to every newspaper, watchdog and any consumer forum that exists and ensure that this gets maximum exposure.

Look at what just happened with the BBC and Ross & Brand - not many people were interested until it was on the news then the complaints rose by thousands per day, they did not listen to the broadcast but obtained the information later and reacted.

I would have done the same as you, taken this as a low-risk decision - Government backed, major bank, contractually linked and surely safe!

I think you will win but have to either join a class action campaign or start one.

Best of luck!

 

[la2006]

Thank you for the replies. I will send a couple of letters to the CEO. and try and get in contact with the other students.

 

The media/ investigation was carried out between 2007 to the start of 2008.

 

Quote:

 

Providers slashed

 

Last summer there were more than 2,000 companies registered to receive Career Development Loans. However, once the Learning and Skills Council underwent a slightly more stringent process of checking and asked all existing providers to re-register, just 700 were left... that is a reduction of around 75%.

BBC NEWS | Programmes | Politics Show | Hopes over future career loans

 

This loan in not reported on my credit rating, and Barclays have not chase me for any repayment despite not paying anything for over 18 months (i used up my savings for around 6 months)- then ran out of funds so had to stop repayments.

Edited November 1, 2008 by la2006

[slick132]

.....Barclays have not chase me for any repayment despite not paying anything for over 18 months.....

Well, the debt will be Statute Barred in another 4.5 years......Here's hoping !!

[la2006]

it was printed on yellow cream paper.

........................................

SUMMONS INTIMATION

Sirs, a summons is shortly to be sought against you in:

 NORTHAMPTON COUNTY COURT 

Unless settlement in full of £1,795 is received within seven days. 

RE: BRITANNIA IT TRAINING COURSE FEE 

THERE WILL BE NO FURTHER INTIMATION. 

Legal proceedings shall include a claim for court expenses of £120.00 plus statutory interest resulting from priior failure to pay. 

Upon judgement, Court bailiffs may be instructed to levy execution against your personal assets to the value of the debt/ 

Communication regarding this account must be made in writing quoting the reference of this notice to the creditor, as named below. 

ONLY IMMEDIATE SETTLEMENT WILL PREVENT ISSUE. 

Payment should be made direct to the creditor listed below by cheque, standing order credit card or BACS

 If no payment is received within seven days the right is also reserved to seek a County Court Summons without further notice.

 If Judgement is made against your your name and address will entered in the Register of County Court Judgement, making it difficult for you to obtain any credit in the future

 08 june 2006

...........................

Simply a scare tactic written by a staff member at Britannia IT and not Northampton Court - I noticed a grammatical error and started having doubts about the letter scanned and e-mailed Northampton court - confirmed a false misleading document

This was a desperate attempt by Britannia IT staff to get more money from students. I was fooled, scared into paying more - ( just had a panic about going to court, and having bailiffs coming to my family home)

 I look at this letter now and think how could I have fallen for this. Its just the same as what DCA do send letters saying that they be taking you to court if you don't pay up, within seven days.

[damieenw]

la2006...I am wondering how is look your situation with bank after you have stopped payments....no response? no problem? np court?

[pf01]

It Sounds Kike You Should Investigate The Fact That It Is A Linked Loan Agreement. See My Thread Career Development Loan Default - http://www.consumeractiongroup.co.uk/forum/general-debt-issues/208420-career-development-loan-default.html

Edited July 14, 2009 by slick132
added link to pf01's thread

[pf01]

Sorry to say that we ran out of ideas and eventually put the loan onto interest free card and paid the full £9000.00. I regret this as I now think that it would have been better to have defaulted on the loan and then negotiated a settlement figure.

 

I recently did one with MBNA (virgin card) where my £9600.00 debt was settled for £2000.00

 

I just didn't know that banks etc would do this at the time.

 

best of luck