student loans pre 1998

[dizzwizz]

Hello All

 

I have read many posts on this forum to try to decipher some answers to my problems with the SLC but I want to ensure some clarity, so please forgive questions that have been covered previously.

 

I shall start with little detail but an overview of my frustration.

 

Since finishing my course I have had relapses of the ME (chronic fatigue) that I had even while studying. Due to personal and circumstances beyond my control I have had to move many times renting privately. Each time I have moved, I have informed the SLC. I have also never earned over the threshold, so I have continually reapplied to defer. Unfortunately, with all the moves, much paperwork has been lost.

 

Each time I have informed the SLC of my new address. I honestly cannot remember one occasion that has not ended in the SLC sending letters to my old address and accusing me of not informing them. Additionally, the maojority of deferments have been 'lost' resulting in charges and 'missed payments'. After arguing for some time about SLC's incompatency I became more unwell due to the stress. I set up a payment plan for the 'arrears' although each time deferment came around it was, again, cocked up and so more charges added and forceful renegotiations by SLC to increase payments. (I should add that for much of the time i have been unwell so on benefits - although past 2 years I have given self employment a go)

 

2 years ago the SLC said that i had stopped paying the agreed amount and wacked on a lot of hefty charges, saying that they had sent letters and notices that i had not received. I had the bank look into the payments and was informed that the SLC had stopped taking the payments rather than my bank stop paying. SLC wouldnt listen to me so the bank spoke to them on a few occassions and reported them to be the rudest people they had ever spoken to. For 4 months I had the SLC on my back accusing me of stopping the payment and then they suddenly decided to say their system had been at fault - however they have never written to me to confirm this.

 

I moved after this episode and informed the SLC but never heard anything. I sent them an email asking for confirmation and received a reply to say that the account had been passed to the debt collectors and so they could not do anything. I asked about the next deferment and again it is with the debt collectors so I could not defer with them. I emailed the debt collectors with the income/expenditure they requested and reminded them that I had moved. I didnt hear anything from them, however in November 08 I had a letter from the SLC passed to me from an old neighbour. Yet again the SLC had written to an old address with more demands and threats even though they had already told me I could no longer deal with them! - I give up.

 

I really feel like putting two fingers up to them now and getting on with my life rather than worrying what will happen next. What, in your educated opinions, should I do next?

 

Is this loan applicable to the 6 year rule? I thought i understood when taking the loan out that under certain conditions the loan would be written off. (although it probably never mentioned SLC incompatence!)

 

I look forward to your advice and perhaps less stress and fewer sleepless nights

 

Thanks

[SharpmanTF1]

the six year 'statute barred' rule applies if there has been no contact between the creditor or debtor for 6 years or more.

 

as you state that '2 years ago they stopped dd collections' i'm assuming that upto then there were payments of some sort being made. therefore, the '6 year rule' does not apply in this case.

 

as for the other regs regarding SLC i'm sure somebody more experienced can provide input in this matter.

 

sharpman

[42man]

STUDENT LOANS

Student loan agreements are simple contracts

and this gives the Student Loans Company

(SLC) six years from the date you last paid or

acknowledged the debt to go to court to

enforce the agreement. There are two sorts of

student loans and different rules apply

depending upon when you took out the loan.

Old style student loans

Old style or ‘mortgage’ student loans are

consumer credit agreements. Payments cannot

automatically be deducted from your wages.

The SLC has to go to court before they can

enforce the debt against you. This means that

the Limitation Act can apply if you have not

paid or acknowledged the debt for over six

years.

WARNING

Asking for the loan to be deferred could

count as acknowledging the debt and start time

running again.

New style student loans

From

September 1998 new style or ‘income

contingent’ student loans include rules to say

that repayments will be automatically deducted

directly from your wages or through your tax

return if you are self-employed. This means

that the SLC are still allowed to take money

from your wages for a loan over six years old

as they do not have to go to court to do so.

[42man]

If it isn't statute barred I would certainly get the excessive charges back + compounded interest at 8%

[human.error]

Hi,

 

I've just been searching google for information upon all of this, I too dizzwizz fell for all of the above and got charged some ludicrous sums in penalty charges.

 

Can someone detail how I should proceed in getting these sums of money back? I differ slightly in that I had my bank account raided and the SLC left me in some debt which I had to use a 'managed loan' arranged quite swiftly by my bank and had to pay back over the course of some years.

 

I would like to know how to get the information so that I maybe able to see for myself where all the problems began.

 

Would anyone care to provide a few pointers?

 

Thanks.

[veester]

applying for the charges back is done in the same vane as Bank Charges.

 

Though are they the £15 a pop charges or what?

 

write in saying there are unlawful, that you have sent in forms they have lost and you want refund of charges + interest and the loan balance adjusted.

[A Guy]

Hi All

 

I am hoping for some sound advice. I appreciate that there is a great deal on information on this site to help people deal with their debt issues, but I haven't found anything that relates that closely to my own scenario:

 

I may have 2 student loans, the first 1997 and second 1998. To date I have not made any repayments or had any contact with the SLC or the numerous DCA's that have been writing or sending postcards sporadically over the years. DCA's have called up my aunty (parents were ex-directory) and pretended to be a friend from uni to get my parent's number and then staretd trying to harrass them about 6 years ago, but soon gave up when my mum told them where to go, bless her.

 

In fact I hadn't heard anything from any of the above since that incident, until September last year, when I started to receive postcards and letters from a few different DCA's & SLC "advising" me to contact them. I may have had some duff (or genius) advice in the past from a friend who suggested not to contact the concerned parties and if it goes over 6 years it will be statute barred and there will be little they can do to pursue me for the debt. In the meantime, i have built up other debts that I am stuggling to service.

 

It seems that CapQuest have now got hold of the debt and have been sending progressively worring letters about taking me to court.

 

The last 3 letters have been:

 

1) CapQuest - Letter before action:

 

"It is therefore our intention to progress your account to our pre-litigation system...account will be passed to our solicitors..."

 

Basically threatening me with an Order of the court, a Warrant of Execution & walking possession Agreement - so they can break in my house and steal my possessions.

 

2) HL Legal:

 

"TAKE NOTICE that unless this account is paid off in full or a satisfactory proposal for settlementt is received by 18 Jan 09 Court proceedings may be issued against you without further notice. They also added £165 for court & Solicitor costs.

 

3) CapQuest:

 

"It is apparent that we need to start the litigation process to reslove this matter."

 

The letter states that a named person has been assigned as case handling superviser to progress my account through the litigation process..."a process that you can stop by calling..." No mention of Bailiffs or Walking possession orders, just that by calling them I can stop any damage to my credit file.

 

I have read in various places that pre-1998 loan debts can only be taken to court within 6 years, but what about a loan taken in 1998? None of my employers have never taken any contributions and I have not made any payments to date. Having previously seen what has been written on here about capquest, I didn't take them too seriously, however I would really appreciate some solid advice on what course of action I should take.

 

thanks in advance

 

A

[rory32]

I have read in various places that pre-1998 loan debts can only be taken to court within 6 years, but what about a loan taken in 1998?

As your initial loan was taken out under the Consumer Credit Act your 1998 loan would simply be added to it, so the 6 year rule would apply to the 1998 one as well.

 

What you have received are just standard template letters (although you may wish to report them to the OFT over the threat of court action on a statute barred debt).

 

I would just send them the statute barred letter via recorded delivery.

[jimmylesaint]

Hi Rory32, this is good news. However, what if they have done a CCJ against the "student" does this affect the time limit?

regards

jimmy

[rory32]

A CCJ would enforce the debt. CCJ's don't become statute barred. However, if the CCJ is more than 6 years old and it has not been enforced then they would need to go back to the court and ask the courts permission to enforce it. They would need to explain to the court why they have previously chosen not to enforce it.

[ozybob]

hi all, can you still claim a debt as statute barred if the letters being sent to you by the SLC or DCA's are to the same address and you have simpl made contact with them?