Link Financial Requesting Full Payment of Student Loan

[EllyColly]

Hello everyone - I am a newbie to forums and apologise in advance if I am doing this incorrectly. I am really hoping someone can help me as I am worried stiff. I have had Link Financial on the telephone twice and have now received a letter from them demanding full payment of my Student Loan. I do not know what to do.

 

I took out a Student Loan in my last year of university (1998) and never deferred it as my husband comitted suicide that year and my only child was snatched to the Middle East by his father (my first husband). I had a nervous breakdown. I fought successfully in the High Court for 3 years for my son's return and we are now settled with my parents. I am just about finding my feet but am on Income Support. Students Loans got in touch around 4 years ago and I was told it was too late to start deferring it and despite being on Income Support. So I started to pay £20 a month and then defaulted.

 

Link Financial say their Accoutn Manager will look at the debt I owe and write to me in 14 days. The debt is around £6500. They have also said that interest is accruing and that they will not accept a small payment per month as it will not cover the interest which is around £21 a month apparently.

 

I would be really grateful for any advice

[jimbo45]

My advice here although not of any LEGAL quality is just to say I'M NOT paying and that's it --let them go to court and if they do they chances are you'd only have to pay a token 1 GBP a month.

 

Sometimes the best solution is just to tell these people to "Bog OFF" and let THEM make the next move. So long as YOU are in control it's dealable with. NEVER let these lowlifes and scumbags RULE YOUR LIFE.

 

I assume you don't have any property so no question of charging orders either.

 

Sometimes one has to do what is PRACTICAL rather than the strict legal interpretation of the law and in this case as soon as the DCA realizes that you have NO money then even the most SOLID case on the planet wont earn them anything.

 

Also if the loan was taken out in 199X it is likely to be Statute Barred so that ends it stone dead right there --you can walk away happy. SB trumps everything else.

 

 

 

Cheers

jimbo

[Bazooka Boo]

When exactly was the last time you paid anything toward this student loan?

You are on IS, are you on any other benefits also? If these benefits are your only source of income, then all you will have to pay them is £1 a month, they cannot take anymore, clearly you are earning the bare minimum which is why you receive IS, therefore, what you earn is the basic amount the Government says you can live on, which is why they will only be able to get £1 a month off you.

If you started your course in or after 1998, your student loan repayments will be based on your income.

If you earn less than a certain level of income - the 'repayment threshold' - you will not be required to repay anything. If you earn above the threshold, you will repay a percentage of the amount you earn over the threshold.

If you started your course before 1998, you will have a different type of student loan.

http://www.direct.gov.uk/en/EducationAndLearning/UniversityAndHigherEducation/StudentFinance/RepayingStudentLoansCoursesStartingFrom1998/DG_10034866

 

If your course began before 1998, you normally set up a direct debit to make student loan repayments in 60 or 84 equal monthly instalments, depending on how many loans you have. But you can make extra repayments to clear your loan faster – or it may be possible to reduce or postpone repayments.

http://www.direct.gov.uk/en/EducationAndLearning/UniversityAndHigherEducation/StudentFinance/RepayingStudentLoansCoursesStartingBefore1998/DG_10034744

 

Student Loans Company contact details.

http://www.direct.gov.uk/en/Dl1/Directories/UsefulContactsByCategory/EducationAndLearningContacts/DG_171789

[dx100uk]

link have recently picked up a large portfolio of statue barred student loans [we call them phishing lists]

and are firing out threat-o-grams to catch any mugs that are stupid enought to pay.

 

when in 1998 did you start your course?

 

and when in 2004 did you make your first payment

 

if there was a CLEAR 6yrs period then you owe nowt

its statute barred and NOTHING can unbar it not even a court of law!

 

lastly NEVER EVER phone a DCA

 

they have NO LEGAL POWERS AND CAN DO NOWT TO YOU!

 

dx

[EllyColly]

A big thank you Jimbo, Bazooka Boo and dx! I really appreciate your quick response and answers to help my situation .

 

I started my degree pre 1998. There was a Court Judgement made against me in 2000 and I have a letter from Student Loans saying that my repayments were scheduled to be paid in full by March 2004 - and that there is still an outstanding balance on my account. I set up a DD of £20 a month to them in 2004 but didn't manage to pay for long and ended up closing my bank account - I have stupidly managed to lose the paperwork whilst moving several times when I lost my house after my husband's death.

 

I have no assets or other income than Income Support, Child Benefit and Child Tax Credits - the Child Support and Child Tax Credits will stop when my boy leaves school next year. How do I find out if the debt is Statute Barred? I have seen something called a SAR which I could send Link Financial . . . should I do this and see what records they have?

 

Can they just take me to court and can I go to court to represent my case?

 

I hope to start work again and climb out of this mess once my boy is at college - he has suffered due to the snatch - emotionally, physically and has gained a stammer - subsequently he has needed quite a lot of support. It has taken a long time but he is happier and more secure now. I was a mature student when I took my degree and hoped to go on to teach - I always worked before going to university and want so much to get back to it!

 

Thank you again for your help - you have restored my faith in human nature!

 

EllyColly

[count orlok]

Was the CCJ for the student loan? Did you start/stop paying them 4 years ago or was it 2004, and have you contacted them since, admiting to the loan, or have you burried your head in the sand for 6 or more years (good if you have)?

[Tingy]

After 6 years it is removed from central court records.

If the OC wants to enforce after this time,they need original court details,and have to seek permission from the court,with a good reason of why it has not been enforced before.

 

If a dca has brought the debt.they will only be granted permission within 6 calendar months of purchase date.

 

Is it still on your file?bearing this in mind, I wouldn't pay them a penny at the moment, ignore , file safely and wait and see what happens.

[EllyColly]

Thanks for your replies Count Orlok and Tingy!

 

The CCJ was for the Student Loan. I started to pay in 2004 but have made no contact since (burried head in sand) and heard nothing about it since. No nasty letters or bailiffs. Then I got a phone call out of the blue from Link last week who said they had bought the debt from Student Loans and wanted the payment in full. Eeek!

 

They rang again today and said they were passing my file on to an Account Manager and I would hear from them in writing in 14 days time. I am wondering if they will reapply to Court. I have not put anything in writing and am wondering what to do. I am worried about them getting another CCJ against me and having to pay a daft sum of money to them! I can't afford diddly as I am on Benefits and struggling as it is!!!

 

EllyColly

[Tingy]

They can't get another CCJ against you. The worst that can happen is they apply to the court for permission to collect the debt then we take things from there. IF they choose this route, make sure you attend as if you're only in receipt of Income Support you will only be ordered to pay a tiny amount, so really do not worry about it.

[EllyColly]

Thanks Tingy! I have every intention of attending as it's the only way my voice will ever get heard - Link seem to be deaf as well as dumb. I think I can ask for the Hearing to be moved to a local court so I can attend. I hope so.

 

EllyColly

[Tingy]

Indeed you can - is it at Northampton at the moment?

[EllyColly]

I have not had the letter yet so I don't know which Court Link Financial will use Tingy. As soon as I receive it I will post it on this thread. Thanks for your help and advice, it's much appreciated.

 

EllyColly

[dx100uk]

time to ignore them until/unless a claim form appears

 

its for them to prove its not sb'ed not you to prove it is

 

just stay off that phone!

 

neither link nor their tame solicitors can do nowt

 

if they do issue a claim form a very much think it would be an abuse of the courts too.

 

dx

 

dx

[Tingy]

Hi Elly,

 

I agree with the above. Don't worry about the court. IF it goes to one you can have it moved to a court near you, but it may well not.

 

I wonder if you can help me as I'm not totally au fait with Student Loans. From whom does the money actually come - the government, a bank or who?

 

Thanks,

 

Tingy

[EllyColly]

Thanks DX! I promise I will stay off the phone! I am truly thankful for the advice and it has occurred to me that I might beable to help others on here re legal matters concerning child custody/access due to my experience at the High Court with my son. So I will have a look at theother threads to see if I can pay back some of the kindness that has been shown to me here by helping out where I can.

 

EllyColly

[EllyColly]

Thanks Tingy - I had always presumed it came from the Government - ie out of Tax Payers money but am now wondering if the Government have borrowed the funds to pay for them? It looks as if they do borrow from an article in the Times back in 2009.

 

I can't post the link as I haven't done enough posts yet - the site is saying "To be able to post links or images your post count must be 20 or greater. You currently have 6 posts. Please remove links from your message, then you will be able to submit your post." but I googled "uk governemt borrowing student loan funds" and the Times article came up on Page 1.

 

I will do a little research into it and see what I can come up with. It may take me till over the weekend to get back to you on it, I hope you don't mind waiting?

 

EllyColly

[Tingy]

Thanks Tingy - I had always presumed it came from the Government - ie out of Tax Payers money but am now wondering if the Government have borrowed the funds to pay for them? It looks as if they do borrow from an article in the Times back in 2009.

 

I can't post the link as I haven't done enough posts yet - the site is saying "To be able to post links or images your post count must be 20 or greater. You currently have 6 posts. Please remove links from your message, then you will be able to submit your post." but I googled "uk governemt borrowing student loan funds" and the Times article came up on Page 1.

 

I will do a little research into it and see what I can come up with. It may take me till over the weekend to get back to you on it, I hope you don't mind waiting?

 

EllyColly

 

Not at all - it's just if it comes direct from the government it may be governed by different regulations - I don't know, so don't worry, just trying to find out.

 

Thanks for your prompt reply,

 

Tingy

[victoria_siempre]

Hi Tingy and elly

 

"The student loans scheme was introduced by the:

 

• Education (Student Loans) Act 1990; and
  
• Education (Student Loans) Northern Ireland Order 1990.
  

The Student Loans Company was established to administer this scheme within the policy context and legislative framework laid down by the government. It was incorporated as a private limited company in 1989 and started trading in 1990.

 

The Student Loans Company is subject to the provisions of:

 

• The Companies Act 1985; and
  
• The Companies Act 2006"
  

http://www.slc.co.uk/about%20us/remit/index.html

 

love vic

[Tingy]

Hiya Vic,

 

Thanks for that. It would appear the 1990 Act has been repealled and large chunks of it have been updated. What I'm trying to find out is are the loans regulated by the CCA or do they come under public monies as this obviously has a bearing on how they're dealt with and if they become SB etc....

[Bazooka Boo]

Student Loans are an unusual case, as they changed in September 1998. Any Student Loan taken out before this date was a consumer credit agreement, which means the Limitation Act 1980 applies. But any Student Loan taken since then is an ‘income contingent’ loan – so repayments can be deducted from your wages without any court involvement, regardless of how old the debt is.

So in answer to your question Tingy is , Yes, if they are student loans pre Sept 98 they fall under the CCA and the limitation act, and No, if they were taken out post sept 98. Hope that clarifies it a bit? If I could find the link where I got that info from I'd post it up.....but as ever.

[Tingy]

Thanks BB. I'm normally very reluctant to accept anything as correct over this sort of thing until I've seen the actual law written down - no offence intended, just the way I am! However, having read around the area a bit this afternoon and beginning to get to know you (despite sometimes disagreeing) I'm happy to make an exception in this case and accept what you say as absolutely correct. It would fit in perfectly with what I've read. I assume from the wording, an "income contingent loan" is exactly that and only collected if you're income hits a certain trigger threshold. If you then lose your job and fall below this threshold, presumably you stop paying until such time as you start earning more again. It NEVER becomes SB.

[Bazooka Boo]

Yes correct T, you have to earn above a certain threshold before you begin to make payments back on your SL (1998 onwards), and as you rightly refer, if you drop below this annual threshold you won't pay a penny. I'll have to have a good root about and see if I can find the actual piece I got this info from and post it up, but it really could be anywhere!!

 

P.S. The moon is made of CHEESE!!

Edited December 3, 2010 by Bazooka Boo
Baiting Tingy..

[Tingy]

Thank you BB - very useful knowledge as there seem to be more and more of these student loan issues coming up at the moment.

[Bazooka Boo]

The directgov website is quite useful, it normaly gives me a few leads then I will go have a trawl about, googling on the way..

[Tingy]

Thanks - appreciate anything you can find. Don't waste hours on it, as me being me I'll do the same as you're doing anyway. If you're happy great, but otherwise leave it rest and I'll hunt around. Thanks again, Tingy!