Student Loans Co to use CRA to recover money

[welshwizard]

Hi

 

I just picked this up on Credit Today:

 

Credit Today online

 

SLC are going after people with loans before 1998.

 

I wonder if we signed agreements that allowed them to share our data?

 

i will ahve to check..........

[noomill060]

No, we didnt...

 

We didnt give consent to data sharing, so SLC are in breach of their own credit agreement and so can be sued for any and all damages caused by that breach.

 

 

They are stirring up a lot of sh!te for themselves. By the way, they do know this and so the CRA and DCAs. This was reported on, also in Cretin Today, last year.

 

https://www.credit-reporting-agency.co.uk/b2b/News/LoadArticle.asp?Position=8&ArticleID=50

 

"The Government is expected to confirm shortly that student loans taken out prior to 1998 will be shared with credit reference agencies and made visible to lenders later in 2008. Only negative information will be shared – those ex-students who miss payments.

Students who took loans prior to 1998 are responsible for making manual payments each month. More recent graduates have a percentage taken automatically from their wages each month.

 

Any late or missed payments recorded onto a credit report will have a negative impact on that individual’s ability to obtain credit.

 

The move is not without risk for the SLC, as it has not routinely sought consent from its borrowers to disclose to credit reference agencies as to how loans are being repaid. It is likely that the SLC will restrict the reporting to defaults, where it can claim that the ‘customer/lender relationship’ has broken down and where a default notice served in accordance with the Consumer Credit Act 1974.

 

Even this is a grey area, and if the SLC attempts to go further, for instance by reporting missed payments, it runs the risk of being in breach of the Data Protection Act 1998."

 

 

;-)

Edited April 17, 2009 by noomill060

[knoxvillain]

I have today received a letter from SLC stating that they intend to register a default against me with the CRAs unless I clear the arrears of about £2k. I don't have that sort of money. Is there any way I can avoid the default by making a payment arrangement with them or will they default me anyways?

[alfwithhair]

Just read this on 'checkmyfile'

 

The Student Loans Company (SLC) is set to get more aggressive with people who regularly miss repayments on their outstanding loans.

Until now, student loans have not appeared on credit files, mainly because the SLC does not have the specific consent of all students to send payment history information to the agencies, one of the basic requirements of sharing account performance data.

The SLC is to send letters to an estimated 60,000 borrowers considered as consistent ‘bad payers’, advising them that they have 28 days to bring their accounts into line. Anyone who fails to respond will be deemed to be in default. Defaults can be registered without the consent of borrowers, so the SLC has found a way to use credit reference agencies as a means of pressure to aid collection attempts.

This new move is likely only to affect those who took out student loans prior to 1998 and the SLC estimates that 30,000 people could see their credit ratings damaged. Defaults stay on credit files for a period of six years and can seriously damage an individual's hopes of getting other lines of credit, such as mortgages or personal loans.

[knoxvillain]

http://www.slc.co.uk/PDF/mortgage%20style%20loans.pdf

[veester]

I thought the principal of law was that they could not apply something like this retrospectively - i have at no stage agreed in any of my SLC agreements for them to share date with or look at my credit file.

[knoxvillain]

apparently they don't need consent

[noomill060]

Of course they need consent, tis the law. Who told you that-SLC, perchance?

 

Consent is not given in your credit agreement, so they dont have any consent.

 

Send the b'stards a section10 notice then sue them if they think they're hard enough.

 

Read the link I posted.

[knoxvillain]

i've heard it from the ICO before in relation to a default placed by a bank.

 

Oh and the link you posted takes me to an article entitled "Banking and Credit Card Survey shows wide differences in how different banks are rated."

 

I already have 1 default which I have went through a lot of pain to try and get removed. It only has about 3 years to go, getting another one would extend my uncreditworthiness by another 3 years. I would rather pay and avoid another one than get it put on and have to fight again to get them to remove it.

Edited April 28, 2009 by knoxvillain

[noomill060]

i've heard it from the ICO before in relation to a default placed by a bank.

 

The credit agreement you signed with your BANK would indeed, probably, contain a section whereby you explicitly give consent to data sharing in relation to defaults etc.

 

The agreement you signed with SLC does NOT.

 

Read your SLC agreement.

 

Oh and the link you posted takes me to an article entitled "Banking and Credit Card Survey shows wide differences in how different banks are rated."

 

The link was valid at the time I posted it. Looks like they've changed it- sneaky eh?

 

I already have 1 default which I have went through a lot of pain to try and get removed. It only has about 3 years to go, getting another one would extend my uncreditworthiness by another 3 years. I would rather pay and avoid another one than get it put on and have to fight again to get them to remove it.

 

That, of course is entirely your decision. Caggers simply offer advice to help you enforce your rights. Whether you choose to accept advice, freely given, is up to you.

Edited April 28, 2009 by noomill060

[knoxvillain]

That's what I'm saying though, regardless of whether the agreement had it in or not, according to ICO consent isn't the only way they can share info with the CRA. I'll try and track it down, i'm pretty sure organisations can share without specific consent.

[noomill060]

Not when the data sharing relates to defaults on a credit agreement.

 

Pre-2007 Credit agreements are governed by Consumer Credit Act 1974.

 

If it aint in your agreement, they cant do it.

 

They cant just make things up as they go along and hope to get away with it with everyone.

 

You track it down, whatever "it" is - then read the Data Protection Act 1998.

 

"No consent - no data processing"

[noomill060]

i've heard it from the ICO before in relation to a default placed by a bank.quote]

 

They were talking about a BANK.

[Tartan Barty]

I went SLC baiting last night on this very subject

 

See http://www.consumeractiongroup.co.uk/forum/debt-collection-industry/196592-student-loans.html

[knoxvillain]

Defaults can be registered without the consent of borrowers, so the SLC has found a way to use credit reference agencies as a means of pressure to aid collection attempts.

 

From checkmyfile.com

[physicsgraduate]

I've been getting phonecalls and letters from Thesis saying this:

 

"Please call us as a matter of some urgency as we do not want to make decisions about your account without discussing the matter with you in the first instance."

 

No idea what they want, I keep telling them to put it in writing on the phone.

 

Anyone else had letters like this?

[knoxvillain]

Not heard from Thesis since they allegedly took over part of my loans.

[alfwithhair]

I've been getting phonecalls and letters from Thesis saying this:

 

"Please call us as a matter of some urgency as we do not want to make decisions about your account without discussing the matter with you in the first instance."

 

No idea what they want, I keep telling them to put it in writing on the phone.

 

Anyone else had letters like this?

 

Not had calls from them, but had a letter a while back

Thesis Servicing based in Caerphilly aquired my account after it had been sold to them and they are now dealing with the servicing of the account and NOT SLC, Glasgow.

 

They do seem reluctant to put anything in writing. I had to complain 3 times about lack of communication before they did actually respond.

 

Have it in writing now that the account is written off under section 12, so they can whistle now, one less A Hole to worry about

[physicsgraduate]

How did you get the account written off?

[alfwithhair]

How did you get the account written off?

 

Sec12(b)(i) of the terms of the agreement my liability to repay these loans is cancelled.

12. The lender will cancel the borrower’s liability to repay the loan if the borrower-

(a) Dies,

(b) is not behind on any repayments under any agreement for a student loan-

(i) was under the age of 40 when his last agreement for a student loan was made and he reaches the age of 50 or when the last agreement for a student loan has been outstanding for not less than 25 years, which ever is the sooner, or

(ii) was aged 40 or older when his last agreement for a student loan was made and he reaches 60, or

© if the borrower can show the lender that he gets a disability related benefit and because of his disability is permanently unfit for work.

 

However this condition may not be applicable to your account.

[physicsgraduate]

Unlikely, but thanks for the info anyway.

[Tartan Barty]

Well I had a letter through, although the person didn't want to put there name to it.

 

It said 'Please find enclosed a copy of your signed agreement I have included a clear copy () and highlighted the issue we discussed.'

 

Now this was me baiting them asking where it said on the agreement they could share my data.

 

The agreement that is signed is unreadable other than the APR and the terms and completely illegiable.

 

The clear copy is nothing to do with me but the highlighted sections is:

Section 6 - Transfer of Rights and Duties

6.1 We shall have the right to assign or transfer all or any of our rights and duties under this Agreement to any person without your consent.

6.2 You shall have no right to assign or transfer any of your rights or duties under this Agreement.

 

Oh well then SLC you got me, I can't believe I was so stupid as to not realise that the bit about transfering rights actually means they can share my info with the CRA's DOH !!!

 

Are these clowns for real......?

[kurvaface]

If it is unclear, surely they have to take a hike??

[knoxvillain]

I got a reply from SLC collections today saying basically I have to come up with the £2k by fri or they will default me. They won't take reduced payments. So looks like I'll be getting another default then

 

Seems a bit strange that I'm offering to pay up yet they seem more interested in ruining my credit record than getting money out of me.

[garibaldilebeau]

I've had them take a payment this month despite no notice, no communication since they said they'd taken it over, and to the best of my knowl;edge no active DD agreement!

 

As I couldn't contact them today, I've sent one forceful email to them and will ring tuesday, but the more I read the more I see they'll just ignore the fact that they've taken the payment illegaly and state that I owe the loan.

 

btw do they even do the deferments that are part of the student loan agreement, because that's one of the things I had no communication on!