Erudio chasing student loan debt

[Alipeeps]

Just wondering if anyone has any advice for me on dealing with this issue.

 

I have always had my student loan on deferment, as I don't earn over the limit where you are obliged to make payments,

however I've had a couple of problems in recent years with the deferment forms not reaching me (whether this is oversight on SLC's part or my crappy postman, I cannot judge (though I have in the past phoned SLC and asked for replacement forms to be sent out and not received those either).

 

 

SLC, being the joys they are, won't backdate deferment,

so in the past I've had to pay e.g. three month's worth of payments to cover the delay in getting my deferment application sent in and approved.

 

The situation I am now in is that I never received the deferment application forms in 2007 and hence payments became due again (they don't have my bank details so can't just take payments from my account).

 

 

I did call SLC at the time and request replacement application forms and never received those and with one thing and another (and very difficult family situation in the last year and more) I haven't gotten around to chasing them again over the deferment.

Which means I defaulted on the monthly loan repayments and ended up getting threatograms from Mackenzie Hall demanding payment of the arrears.

 

I contacted them and arranged to make a monthly payment (which I can't really afford!) and have been doing so since last summer - however due to difficult financial situations I have missed or was late with a couple of payments here and there which means they now say because I defaulted on the payment scheme agreed, if I miss or am late with even one payment now, I become liable to repay the entire amount (I think it's at about £800+ now).

 

 

The other problem is that the arrears seem to be accruing at a rate higher than what I am paying each month (£117) so my overall debt is going up, not down!

 

 

I didn't actually realise at first, when I spoke to them and agreed to make these payments, that the debt they are chasing me for was not a static amount of debt handed over to them by the SLC, but effectively the ongoing debt, which is increasing each month as another payment becomes due.

 

I'm not sure what to do about this situation

(being a muppet - and not having found these forums previously - I've dealt with these idiots on the phone and not in writing).

 

 

I'm worried about the fact that this debt is continuing to increase but I'm also pretty sure that the SLC have told me that I can't apply for deferment again (which would at least stop payments becoming due each month and increasing the debt) whilst I still have arrears outstanding!

 

Does anyone have any advice?

Should I contact SLC re: the deferment?

 

 

And should I write to Mackenzie Hall and try and sort something better re: the repayments etc?

[palomino]

You need to get the deferments sorted out pronto.

Get the forms completed and sent off.

While you have the forms make some photocopies for next time just in case.

 

Write to MH and ask for a current statement of account.

 

 

From this you should be able to see what all the additional charges are.

 

 

It is entirely possible that MH are adding their own charges on as well.

 

Send all mail recorded delivery.

[Alipeeps]

Thanks for your reply.

Is there a standard format letter I should use to ask MH for a statement of account.

Is it the SAR that I see people referring to?

 

I'm going to contact SLC about reapplying for deferment and see what they say

(hopefully I can at least get deferred again and stop the payments accruing)

but am not sure what to do for the best about MH.

 

Anyone?

[emmaf01]

Right, a couple of questions. Are the loans pre-1998? And are you working or on any benefits?

 

You do need to get deferment organises asap- ring and get forms. It may also help to send a recorded delivery letter requesting your deferment forms. Deferment is possible if you have arrears- I should know!

[palomino]

Dear Sirs,

 

Re : Student Loan Account xxxxxxx

 

Please send me a current statement of account for the above account.

 

Yours faithfully

 

The S.A.R - (Subject Access Request) will also do the trick but costs £10. You can ask for any information at all pertaining to the account.

 

There is a template letter here but that only asks for statements.

 

 

You might want to ask for things like application form, filenotes, copies of correspondence, records of any telephone records, notices etc. etc. Use you imagination to think of all the things they might have for that account. Conclude your list with something 'anything else not included above'.

 

The S.A.R - (Subject Access Request) is made under the provisions of the Data Protection Act 1998 - which is where the £10 fee is specified. I think they have 40 days (8 weeks?) to supply the requested information but I will bow to more expert opinion in that respect.

Check out the Information Commissioner's website for full details - Complaints about data protection policy - ICO.

Edited August 1, 2008 by palomino
got link wrong

[Alipeeps]

Right, a couple of questions. Are the loans pre-1998? And are you working or on any benefits?

 

You do need to get deferment organises asap- ring and get forms. It may also help to send a recorded delivery letter requesting your deferment forms. Deferment is possible if you have arrears- I should know!

 

Thanks for your help guys...

 

I have rang and spoken with SLC today and they are sending out replacement deferment application forms (should go in the post Monday - if I havent' received them in a couple of days they've said to call back adn they can fax them to me) so I can get that sorted and at least get back on deferment so that I'm not accruing any more debt.

 

In the meantime I'll do as suggested and write to ask MH for a statement of the account so I can see where I'm at - and what charges they have been adding!

[Guest forgottenone]

Ignore what was here.

[emmaf01]

SAR to SLC- then you can find out the charges and claim them back. This will reduce your debt.

 

We all know that sometimes life, family problems, health, etc get in the way of doing what we should have done ie deferment. The main thing is you are doing now, Alipeeps.

[Alipeeps]

Hope someone can help me out with some advice.

 

I have been dealing with CapQuest for quite some time (probably over a year now) for arrears on my Student Loan account

(my loan payments should be deferred but the SLC keeps failing to send me the deferment application

- this means while the loan is not deferred every month a new loan payment is added to my arrears total so it never gets cleared!!

 

 

I need to deal with SLC over the deferrment issue but am still having to deal with the DCA over the arrears

 

I was making a payment of around £117 a month until last October when I was made redundant.

Since then CapQuest have been calling me almost every day on my mobile

- I initially answered the call back in November and did make a payment to them at that time via their website.

 

 

Since then I have refused to answer their calls

(I know it's them as it's always the same number calling)

as I don't want to be hassled by them.

 

I have now started getting letters from another company - Credit Solutions.

 

 

They sent me a letter at the end of December saying they were pursuing this debt and

 

 

I have now received another letter from them today, dated 5 January, stating that because I have

"been legally notified of the above claim and have failed to pay"

they have

"commenced the preparation of papers necessary for LEGAL ACTION to commence"

 

 

and stating that I have 72 hours to pay all outstanding areas in full (£1260.72) or "make satisfactory proposals".

 

I have several questions about all this and how to deal with this situation.

 

 

Firstly, I was under the impression that 2 DCAs cannot pursue you for the same debt?

Are Credit Solutions even allowed to pursue me for this debt, given that I am already (and have been for some time) dealing with CapQuest over this debt?

 

Secondly, are Credit Solutions genuinely taking legal action against me (and are they allowed to at this stage?) or is this just typical DCA threatening behaviour?

 

 

And can they insist that I call them? Within 72 hours?

 

 

I don't want to call these people as I don't want to speak to them on the phone - quite honestly,

I cannot cope with the stress..

 

 

in 2008 I've suffered through a close family bereavement and improper redundancy (which is proceding to tribunal) and I am currently 5.5 months pregant - I really cannot cope with more stress!!

 

Thirdly, what is the situation with CCAs and student loans?

I've read around quite a bit on this website and understand some of the basic concepts for dealing with DCAs, including requesting the CCA to prove they have the right to enforce this debt, but does this also apply to student loans?

 

 

Do they fall under the same law as e.g. credit cards etc with regard to credit agreements?

Can I get myself some breathing space by CCAing CapQuest and/or Credit Solutions?

 

I would be VERY grateful for any help anyone can offer with this

- I don't dispute that I owe this money

(although I shouldn't have to be paying it, but that's the SLC's screw up!)

but I cannot afford to make payments, or not full payments, right now.

 

 

Deferment applications should be sent out again soon so I will hopefully get the rest of the loan deferred

but I still need to deal with the arrears..

but I really can't cope right now with these companies hassling me and threatening me over this.

 

 

What is the best course of action for me to take?

 

Thanks in advance.

 

Ali

[twofoot]

Firstly never talk to a DCA on the phone, they'll screw you.

 

 

I don't have a clue on students loans but I'd still CCA them.

 

 

DCA's get debts passed between them but you should have had a notice of assignment from the original crediter.

 

 

Looking on the dull side of things.

The worst senario is you get a CCJ and end up paying a few quid a month or even £1 if you are on benefits.

 

 

That is a long long way away.

Get that CCA sorted.

 

 

Use a postal order and letter N from the templates

. Don't use you normal signature.

[Alipeeps]

Thanks for your response Twofoot.

 

Can anyone help me out with specific advice relating to student loans and my questions above?

 

 

Can Credit Solutions even pursue me for a debt already being handled by CapQuest?

 

 

Can they take legal action against me?

 

 

How should I best deal with this debt/these DCAs - CCA request, SAR etc?

 

 

I'm at a bit of a loss here...

[pinkmoomin]

I'm here looking for similar info.

 

Although I have never been earning over the threshold for paying back my old-style student loan, I have made some payments in the past.

 

I am at fault for not requesting a deferrment any time recently, but 1st Credit (I think, don't have papers to hand) recently got hold of the account, demanded an unaffordable figure per month and received a total of about £500 from me over the last few months. My last payment was about a third of their requsted amount and the next one wasn't made. Then, almost immediately I receive three letters from Buchanon, Clark and Wells over the space of a fortnight, the latest telling me that 'court papers can now be prepared'.

 

Am I in a position to say sorry, I should have asked for deferrment but I've paid £500 recently and I'd like to defer now (my guaranteed monthly income is about £1200 less than their threshold at the minute)?

 

Also, BCW are telling me approx £1400 is overdue, which is actually the total balance of my account. My Student Loan Co statement says that only around £1100 is overdue.

[Alipeeps]

You need to deal with the Student Loans Company about the deferment issue - the DCAs don't care and can't sort this for you. The DCAs are only dealing with the arrears.

 

Can anyone else PLEASE help me out with some advice on how to deal with these two companies

- CSL and CapQuest? CSL are being VERY aggressive

- I have come home today to a card through the door from Power 2 Contact Ltd stating

"I confirm that I will be calling to discuss the recent communication from CSL.."

 

I'm going to send them the letter stating I do not give permission for them to call at my property but other than that, what do I do about CLS?

 

 

I don't even know if they have any right to pursue this debt, as it's already in the hands of another DCA.

 

 

Should I CCA them?

I'm thinking of combining a CCA request (if that's the right way to go about this) with the "do not call at my property" letter.

 

I know DCAs love to threaten but CSL's behaviour is worrying me because they have come in so heavy-handed..

 

 

2 letters in the space of a week or so (and the card threatening to call at my property is dated 29 December (a week before the date of their second threatening letter!).

 

 

I need to know what my rights are here - and what theirs are.

 

 

Do they have any actual right to pursue this debt and can they actually start legal proceedings against me, as they are threatening?

 

The other question is what to do about CapQuest.

 

 

Do I CCA them too?

Or is SAR what I should be doing instead of CCAing?

And if that's the case,

do I SAR CapQuest or The Student Loan Company?

 

I would really appreciate some advice on this

- I read lots of great advice on here about dealing with DCAs over credit cards etc but am uncertain of how the laws/advice applies to student loans and am a bit of a loss as to what I need to do.

[Alipeeps]

This is what I'm thinking of sending to CSL - a combined CCA request and "do not call at property" letter: Would be grateful for any thoughts/feedback...

 

removed - dx

[Pinky69]

Firstly,

if there are problems with the SLC not sending you deferment application forms you need to take this up with their complaints department.

 

 

Send a letter by recorded delivery as that needs to be resolved as a matter of urgency.

 

 

I would at the same time ask them to clarify who is supposed to be collecting the outstanding amount as you have been contacted by 2 DCAs and you require a Notice of Assignment detailing to whom the account has officially been allocated.

 

 

Then write to both DCAs complaints departments and complain that their agency is trying to pursue a debt at the same time as another agency and without a legal Notice of Assignment you have no proof that their agency has any legal right to pursue you for payment.

 

 

That being the case no payment will be forthcoming unless you receive the required Notice of Assignment fron the SLC.

[Alipeeps]

Thanks for your advice Pinky

- I am planning to contact the SLC about the deferment issue as only they can deal with that.

 

 

D'you think it's better to deal with the SLC about Notice of Assignments, rather than CCA'ing the two DCAs then?

 

 

I'm going to at the very least send aletter to Credit Solutions denying them permission to call at my property...

[Pinky69]

I would ascertain which agency the account was assigned to before I had any dealings with either of them.

 

 

You can still send a CCA request to the SLC.

 

 

Remember student loans after September 1998 are not governed by the CCA 1974 and can be collected by the SLC without court action.

 

 

Of course they cannot collect money you don't have.

[Alipeeps]

Thanks again for your help Pinky.

 

I'll do as you say and write to the SLC for more info and requesting notices of assignment

- my loan account dates from 1993

(I finished Uni in 1997) so should be covered under the CCA.

[kurvaface]

It seems we are dealing with the same monkeys.

 

How have you been deferring?

My understanding is that you start paying the year following the end of your course unless you defer.

You can defer for up to a max of 10 years on a pre '98 loan so what's been going on recently?

Edited March 30, 2009 by kurvaface

[Alipeeps]

I had student loans through the SLC when I was at Uni (finished Uni in 1997!!).

 

I have never earned above the threshold for repaying the loans and used to apply for deferment on this basis each year.

 

 

However somewhere around 2004-2008 SLC starting screwing me around, failing to send me out my deferment paperwork, losing the paperwork I sent in etc etc etc (I have long suspected this was deliberate) until eventually my deferment didn't go through in time,

 

 

the loan became payable and, because I couldn't afford to pay, I missed a payment and bingo, I had arrears which meant I didn't qualify for deferment!

 

I don't think I ever made any payments to them because my financial situation at the time was terrible

- particularly cos of my bank pushing me further and further into debt each month by applying bank charges for unplanned overdraft,

which then pushed me further overdrawn each successive month, incurring more and more charges etc etc etc!

 

I've not heard anything from SLC, or contacted them, for a looooooong time

- I don't even know how long but am guessing it has to be at least 7 years cos we moved house that long ago and SLC have never had this address or contacted me here.

 

However, recently I have started getting letters from Erudio chasing this debt which has, apparently, "reached maturity".

 

So my question is... how do I proceed from here?

 

My loan is one of the older ones where you had to be earning over a certain threshold to repay.

I have never earned over that threshold and don't earn anything at present (stay at home mum).

 

I've not been in contact with SLC

- or any DCA or anyone about this debt

- for, at best guess, at least 7 years.

Does this mean the debt is statute-barred?

 

Any advice on how best to deal with this would be gratefully received.

 

Oooh thank you admins for combining these threads!

I hadn't even remembered that I'd previously asked for advice on here re this debt, it was all so long ago!!

[dx100uk]

twas me

 

 

statute barred so safe to ignore totally all the willy waving

however IF you EVER get a claimform DONT IGNORE IT!!

 

 

now lets resit things...

 

 

Firstly, these latest letters are sadly of your own doing..

..by that I mean you were stupid enough to pay a DCA years ago

{tip NEVER EVER EVER pay a DCA or talk on the phone - THEY ARE NOT BAILIFFS]

 

 

now those that fleeced you years ago, namely Capquest, are now owned by Arrows

and .....TADA gues what another name for arrows is ...ERUDIO...

 

 

so they've seen you go spoofed years ago and have tried it on today.

 

 

dx

[Alipeeps]

Yeah I know,

I was young(er) and foolish back then and drowning in debt and struggling with bereavement and pregnancy and illegal redundancy and I didn't know about CAG and I let myself be bullied and threatened into making payments

- payments that I couldn't even afford!

AND they used to phone me up and demand that I increase my payments!

 

I can't believe, looking back now, that I was stupid enough to talk to DCAs on the phone.

But that is how these vultures make their money.

.. by preying on people who don't know their rights and who can be bullied and pressured.

 

I will continue to ignore Erudio's threatograms and keep an eye out in case they decide to chance their arm and send out a claim form.

 

Thanks again for your help dx.