Erudio using state benefits, refuse deferement, i want to go to court over this

[sabby1978]

Hi all,

 

i am wondering if you can help me.

 

Ive had the most distressing phone call with an advisor from Eurdio.

 

I was completing my deferment application and become quite concerned

when I came to section 9 which asked for gross total income including state benefits.

 

I currently receive rent that is heavily subsidised by housing benefit as I rent privately,

I receive some council tax benefit, child and working tax and child benefit.

 

My wages are only £900 per month but when I added the above benefits my gross total income was above their £2398 threshold for deferment.

 

I contacted them to see if the above benefits were included in what they considered my gross income and I was told that they were.

 

I tried to explain that the above were means tested

that were used to help me pay my rent which is £1400 per month (I live in London)

and my childcare

and that I could not see how these could be used.

 

They said that they had a list of all benefits that could be used in their calculations

and that both housing benefit, child tax credits and child benefits could be.

 

Is this right?,

 

I have complained and will escalate to ombudsman if necessary

Things are so tight for me at the moment I cant deal with another bill.

 

Please help

[kirkbyinfurnesslad]

what do you expect the ombudsmen to do?

is the old style student loan......

[sabby1978]

yes, its the old style loan and this is who you go to if you exhaust their complaints procedure.

[kirkbyinfurnesslad]

as its the old style you have no worries at all. I have never paid a penny of mine bk and never deferred

[sabby1978]

I think you may misunderstand,

 

I have never earned enough so have always deferred.

 

This new company which has just taken over from the student loans complany

now include things like my housing benefit in my gross income

and so I would have to start repaying

whereas under the old system would have been discounted.

 

Is there any one with any expertise in this area,

specifically can housing benefit be classified as part of my gross income when it is awarded to pay my rent.

 

Any help much appreciated

[kirkbyinfurnesslad]

Err no i dont mis understand at all.

If you dont wish to repay then you dont have to. No matter what this company say

 

So stop thinking that this company can tell you what to do, i told SLC to go do one years ago and if they had issue then to issue a CCJ, my initial loan was in in 1996.

[sabby1978]

Thanks for the advice not really helpful to me as I spent years rebuilding my credit rating

and getting myself out of debt and do not want a CCJ issued against my name.

 

As I said what I really need to know is if the means tested benefits

 

I have referred to can really be considered as part of my gross income

or how I can challenge this as im sure there are going to be many people in my position.

 

Anyone......

[dx100uk]

NO they are not.

 

just remember, Erudio, are a DCA

they will say anything on the phone they like

 

they are not BAILIFFS and have nosuchLEGAL POWERS.

 

stay OFF that phone to them.

 

when did you take the loan out?

 

dx

[sabby1978]

Hi

I took out the loans between 1998 & 2001,

the only reason I contacted them was to find out if state benefits were included in what they referred to as ones gross income.

 

They confirmed that they would use awarded housing benefit, child and work tax credit and child benefit as persons gross income,

this would not be disregarded but added to my earnings of £900.

 

I just want to know what to do and

 

can they do this,

I mean tax credits and housing benefit award me money to pay my rent and childcare costs not pay off my old student loan.

 

PLease help, what is my legal position with regards to this matter

 

Many thanks in advance

[kirkbyinfurnesslad]

DX has already advised this company have no power.

 

they can ask for what they like.

You on the other hand can just refuse ut.

 

You are giving this company far to much credit

 

They can't take you to court.

[sabby1978]

I think that they could take me to court as I have been acknowledging the debt

and as I said I do not want my credit rating that I have worked so hard to restore jeopardised!

 

If there are any benefits, cab workers or solicitors on here what would be their view

[WarrenBuffet]

Sabby, you are in good hands with dx's advice. If you had been defering with SLC and your circumstances were the same then the same applies to DCA.

 

If they call you .... Simply say "Please only communicate in writing in all future correspondence" ... and put down phone.

Remember, they are a Debt Collection Agency (DCA) and they will lie, deceive and swindle you. Do not trust a word they say.

 

PS: They cannot take you to court as they are not the original creditor nor can they take a CCJ either for the same reason.

 

PPS: Play hard with them and do not let them force you into making payments just state "I have been defering with SLC under the same circumstances therefore you are breaking the original terms and conditions of the contract and i shall be reporting you to the relevant authorities".

[kirkbyinfurnesslad]

Sabby I think you will find they will have no interest in taking you to court. Now I suggest you take the advice u have been given

[sabby1978]

I appreciate your response but im not finding that your advice is helping as there is no legal ground to it, so I would appreciate responses from people who can tell me what my legal position is rather than saying just don't pay it!

[kirkbyinfurnesslad]

There is no legal ground for this company asking for this information

Dcas hve no powers _ legal ground.

 

Don't get wrapped up in "legal ground"

[sabby1978]

on the deferment form they ask for bank statements, bank details and proof of benefits

and earning much like the SLC did

but this new company don't disregard benefits as the old SLC did

[sabby1978]

I want to know do I send in the deferment form or not and what are the possible repercussions

[kirkbyinfurnesslad]

Forget what this new company are asking for they can ask for and make their own rules.

 

You are under no legal obligation to provide it

[kirkbyinfurnesslad]

If you want to. You have nothing to loose

[WarrenBuffet]

They are breaking the contract then, you are oblidged by the terms and conditions of original contract with SLC.

[sabby1978]

So could I write and say that they are breaking the term of the SLC contract.

 

The other thing that I am concerned about is that the SLC had a direct debit details

would Erudio now have these and would they be able to take from my account?

[WarrenBuffet]

No, if you had been defering then you continue to defer. If they start taking money from your account without your express consent they will be breaking the law.

 

Sabby, can i suggest that you google or even look at the DCA section of CAG and you will see that they have little power or authority, although they may try to lie to you otherwise. ....Knowledge is power.

[sabby1978]

I had been deferring with SLC on an annual basis and needed to complete deferment forms along with proof of earnings and benefits.

 

So are you saying that the SLC sold this onto a DCA and they (Eurdio) cannot go about collecting the money in the same way in which the student loans company did?

 

And knowing this why did eurdio buy such a huge debt knowing they had no powers to collect?

 

Thanks for your help

[dx100uk]

cancel the SLC DD

[dx100uk]

http://www.consumeractiongroup.co.uk/forum/showthread.php?412611-Gov-t-has-sold-ALL-remaining-old-style-student-loans-to-Erudio-one-Arrow-global-(5-Viewing)-nbsp