Capquest offering Discount on 1996 SLC loan Erudio

[Munirs]

In 1996, I applied for the then student loan for as 2 years course.

 

Once I finished my University, and for a long while, I didn't get any jobs where my earning reached the threshold necessary to start paying it back.

 

I then moved to Australia and live there almost close to 4 years.

 

I hadn't heard anything from the SLC (Student Loan Company) since 1997.

 

When I got back from Australia, I suffered a stroke and since then I have completely forgotten about this loan.

 

However, last week, I got a letter making demands to pay the loan back?

 

Isn't this supposd to be statute barred? (No communcations since 1997?)

 

Also I am going to be 51 and I was under the impression that the loan gets written off once you are that age?

 

The long and the short of it is that my daughter needs to apply for a student loan and my wife has been able to fill-in her side

 

and I am supposed to do mine, but it keep saying error and that I must contact them by phone.

 

 

I am not sure what to do next?

 

Is this statute barred or not?

 

Thank you for your help

[dx100uk]

who from?

 

 

dx

[Munirs]

Hi dx, it was from a company called Erudio and the letter says there is a possibility of a settlement figure of 20% but the total figure is around £4534,

 

 

whereas the loan I think it was around £1800 or so, since it was only a two year course.

[dx100uk]

how did I guess...

[dx100uk]

ohh you got a discount letter?

 

 

can you scan it up to PDF please?

 

 

follow the upload

[Munirs]

Hi dx

 

This outfit must be known then?

 

I have attached the letter for you and yes, ain't I the lucky one for getting the discount!

 

Thanks for your help :hail:

capquest discount letter.pdf

[dx100uk]

urm you need to do a bit of reading up

cag is self help too

 

search cag box red toolbar up top

 

Erudio

[dx100uk]

oh and I redacted you letter properly

[Munirs]

One of the things I have just read is not good

 

"If your account is in arrears and you reach the age-related cancellation threshold, your loan will not be cancelled until you clear your arrears."

 

The age related criteria is only applied, in what I have understood, only if and when the loan repayment has never been in arrears (other criteria apply like loan must have been taken while under 40 or at least 25 years have passed)

 

This suggests that the loan is still active and this outfit will do everything to get a slice of it. Though I am sure they were sold the debt at a pence per loan application!

 

Oh well, I was getting chuffed about one good thing in being 50 but no...

 

Further interesting read on Erudio practices.

 

If you are thinking of making an offer for repayment, I suggest you read the following carefully:

 

How will a 'partial' settlement affect my credit rating?

 

Usually, if your partial settlement is accepted, the lender can put a flag next to your credit file saying the loan has been partially settled.

 

Erudio says once it starts relaying information to credit agencies, it will report partial settlements as '0P', with the P standing for 'Partial', but different credit reference agencies may use different terminology on their own credit reports.

 

For instance, Experian and Equifax show partial settlements as 'satisfied', although a company can add a flag to the report to say, for instance, that the payment has been received in full, but it would not fully clear the balance.

 

However, whichever way a partial settlement is logged on your credit file, both Experian and Equifax say it represents some sort of "bad debt", and that this won't help to improve your credit rating.

 

But they do add that a partial settlement is less harmful to your credit file than a number of outstanding debts, and of course, all lenders have their own criteria for customers to meet in order to be offered credit.

 

How will a 'full' settlement offer affect my credit rating?

Erudio says when it starts passing information to credit agencies, it will report full settlements as 'Paid in Full' which will be marked with a '0'.

 

But again, different credit reference agencies may have their own terminology for this. Experian says it records full settlements on its reports as 'settled', while Equifax says they would show as 'satisfied paid in full'.

 

In terms of how this affects your credit rating and ability to take out credit in future, both Experian and Equifax say a fully settled account could be a boon, especially if it's been repaid on time each month as it demonstrates responsibility in repaying any debt.

 

All good, but hmmm, should I do partial or full?

 

I think it might be worth asking them for a breakdown of that £4534 since I only took out less than £2000? I guess osme of it is down to interests.

[Munirs]

Thanks dx, appreciate it

[Munirs]

Hmm

 

Once earnings are over the threshold, you pay the outstanding amount over 60 months (84 months if you have more than 4 loans).

 

In other words, a full repayment in my case - assuming I am not taking the offer of discount at 20%, it would come to £76 a month roughly.

 

A 20% discount gives roughly £3628 as outstanding so the monthly is just over £60 a month.

 

 

I am leaning towards paying this - good for record and my heart

 

Please feel free to share your opinions and helpful tips. Appreciate all help thank you

 

Ha ha ha.... Seems this is a right mess!!

 

Read on:

 

Between 2008 and March 2014, the SLC made a long-running error in correspondence sent to borrowers with pre-1998 loans who were in arrears.

 

The SLC says nobody overpaid their loans, or paid any additional charges or interest because of this mistake.

 

But as it "potentially" broke the law by failing to disclose arrears correctly, all interest payments and charges borrowers paid from the moment they received their arrears letter from the SLC, until their loan was sold to Erudio last month, will be refunded.

 

Here's what happened:

 

• Any borrower who missed two or more repayments received a letter from the SLC saying their account was in arrears.
  
• Students who went to university before 1998 often have more than one loan to repay. But the SLC sent a combined Notice of Statement in Arrears (NOSIA), which detailed a borrower's overall arrears.
  
• Crucially, it should have sent individual NOSIAs, which break down the separate arrears for each of a student's loans.
  
• This blunder was spotted when the loan accounts were transferred from the SLC to Erudio Student Loans this year (see the Student loans sold MSE News story).
  
• The SLC says the mistake means it may have breached the Consumer Credit Act, which was changed in 2008.
  

 

Maybe why they are willing to offer 20% discount?

 

Might be a better option to tell them that I was expecting the refund from the blunder and see where that takes me?

 

Turning this into the mother of all Erudio threads in here, hopefully with the aim to help people in my predicament

 

Interesting approach...

 

Statute Barred?

 

From CAG OP:sequenci2012 thread: Can SL be statute barred?

 

Yes, 100%. Both old-style (e.g. pre-98) and new-style student loans can become statute barred subject to the Limitation Act.

 

The limitation period is 6 years.

 

The only difference between old and new style is that new style loans can be recovered from ongoing PAYE tax - even after the 6 years limitation period is up.

 

 

 

FURTHER ON, under the same thread:

 

Student Loans are an unusual case, as they changed in September 1998. Any Student Loan taken out before this date was a consumer crediticon agreement, which means the limitation acticon 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.

 

 

 

 

 

If you want to take that approach, here's a template for a statute barred letter:

 

 

(Your home address)

__________________

__________________

 

Date:______________

 

To:

 

without prejudice

 

 

 

 

Dear Sir/Madam

 

Account No:

 

You have contacted me/us regarding the account with the above reference number, which you claim is owed by myself/ourselves.

 

I/we would point out that under the Limitation Act 1980 Section 5:

 

“An action founded on simple contract shall not be brought after the expiration of six years from the date on which the cause of action accrued”.

 

I/we would also point out that the OFT say under their debt collectionicon Guidance on statute barred debt that:

 

“It is unfair to pursue the debt if the debtor has heard nothing from the creditor during the relevant limitation period”.

 

The last correspondence/payment or acknowledgement of this debt was made over six years ago and no further acknowledgement or payment has been made since that time. Unless you can provide evidence of payment or written contact from me/us in the relevant period under Section 5 of the Limitation Act, I/we suggest that you are no longer able to take any court action against me/us to recover the alleged amount claimed.

 

The OFT Debt Collection Guidance states further that:

 

“Continuing to press for payment after a debtor has stated that they will not be paying a debt because it is statute barred could amount to harassment contrary to section 40 (1) of the Administration of Justice Act 1970”.

 

I/we await your written confirmation that no further contact will be made concerning the above account and confirmation that this matter is now closed.

 

I/we look forward to your reply.

 

Yours faithfully

 

(Your signature)

[dx100uk]

great work...

 

now not the way this is written but ... slow down a bit..

 

sar to slc before you do anything..

 

sb route for me too yes!

 

dx

[Munirs]

I was hoping to get some answers tonight so I have a way to get my daughter's student loan app (Parent supporting form) off soon...So apologies for the bull in a china shop approach

 

SAR, can this stop or delay a DCA from applying to the court?

 

Nothing of the sort has happened - just thinking ahead.

 

 

A SAR template: [ removed as it says at the top..please dont post in the open forum..- dx]

[dx100uk]

I didn't get why you cant do her form

whats the issue?

[Munirs]

I was hoping to get some answers tonight so I have a way to get my daughter's student loan app (Parent supporting form) off soon...So apologies for the bull in a china shop approach

 

SAR, can this stop or delay a DCA from applying to the court?

 

Nothing of the sort has happened - just thinking ahead.

 

 

A SAR template: [ removed as it says at the top..please dont post in the open forum..- dx]

 

Didn't know about the CAGmail feature! Great feature by the way!

[Munirs]

I didn't get why you cant do her form

whats the issue?

 

When I try to login to the site at Students Finance England with the url logonDOTslcDOTcoDOTuk/cas/logon because I am parent and need to provide information to support my daughter's application

 

I don't remember the password and it asks me for name and DOB and I do supply these but site crashes with this (note tried the registration route with exact same outcome)

 

I get this error:

 

An unknown error has caused the application to stop working.

 

The information you entered on the last page may not have saved correctly. This could be a temporary error. You can try again later (we suggest you allow a couple of hours). If you continue to see this message when you try again, please contact Student Finance England.

 

 

Stumped!

[dx100uk]

they often have the same issues as MCOL.

 

try again in the morning when the bod resets things.

 

as a check use another PC or device

see if it does the same

 

but its nowt to do with 'your issue' the old loan for sure...

[Munirs]

Thanks Dx, Will try that tonight and if that fixes I might even !!

 

Sending the SAR now.

 

Can the DCA take court action before responding to SAR and they must delay the action until SAR has been sent?

[dx100uk]

sar is to SLC not the DCA

 

 

pers id not tell them anything

[Munirs]

they often have the same issues as MCOL.

 

try again in the morning when the bod resets things.

 

as a check use another PC or device

see if it does the same

 

but its nowt to do with 'your issue' the old loan for sure...

 

 

tried it from the Laptop and from my tablet, no success sane issue

[Munirs]

tried it from the Laptop and from my tablet, no success sane issue

 

 

Just an update on this:

 

I tried different machines to log into the Student loan England site even using work laptop but kept getting the same issues.

 

I had at this stage sent a SAR to Erudio too.

 

I then decided to call Student loan England, not Erudio. I picked option 1 when I called them which is the one about having problems logging into the site.

The automated system will ask for a cust ref which I just entered some random numbers because I don't have that anymore.

 

At this stage, the system keeps trying to get that ref and it can drive you nuts

 

After a while, the system does send your call to a real person. Yay!

 

However, be prepared to be asked about your full name, dob, first line of address, postcode, tel no...Even if that was years ago and you had moved few places in your life since 

 

You can call them twice and if you get it right within that you can have password resetted like in my case but if you get it wrong after the second call, you'll have to send in documents to support your identification!

 

Happy to say I have since managed to complete the app form on the initial laptop too!

 

Cheers all for reading this and special mention to dx100. Thanks a lot dx100!

 

Hope this helps someone

[Munirs]

Just re-read the whole thing and what dx100uk said is correct:

 

It was nothing to do with my loan

[dx100uk]

Oh and ...

 

The sar goes to SLC not studio

Even corrected you before in post 19!!!!

 

You seriously need to read things properly else it make you a total,

[Munirs]

Oh and....

 

The sar goes to SLC not studio

Even corrected you before in post 19!!!!

 

You seriously need to read things properly else it make you a total,

 

 

I did SAR SLC unlike what I said in the morning. I wouldn't mess up that as it costs time and money.

 

I see so many of the threads here end suddenly without any closures from the OP and just wanted to give out my final update. I know I rushed it but hey an update is better than no update.

[dx100uk]

Which usually means everything's OK

Yes that is annoying.

As we bother to help

They should at least bother to update threads