DLC/Student Loan

[Vampyra]

OK now this one I am a bit stumped by. The last Student Loan payment I had was in 2000/2001 financial year. I did, however, do the right thing after graduating and defer the loan for 12 months because I was unemployed at the time. I got some employment in the May of that year but it was not over the £17000 threshold and when contacting the SLC the said not to worry until I am earning over the £17000. I think my boss had to sign a form as far as I recall.

 

In August of that year mum had a small stroke and I was considering leaving my job. I finished with the employer in October 2002 and in November 2002 became mum's full time carer.

 

I deferred the Student Loan in the Feb of 2003 approx 3 times and they said they never got the paperwork. I was also having to contend with mum and her hiding post and throwing paperwork away. It was an extrmely difficult time. After attempting 3 times to send this deferrment, I gave up - I really had too much on my plate to worry about the SLC - I could go into it here but it's not the issue at hand.

 

The SLC sent my account to a debt collector soon after. I had phoned the debt collector and SLC on a few accasions and have told them I do not owe this money because I have never earned the threshold amount and thus deny it is a debt.

 

I have recieved 2 letters of demand of payment from Direct Legal & Collections for the sum of £9474.85. First dated 5th April and another today dated 19th April. They inform me my contractual monthly installments continue to be due.

 

My arguement is I do not owe this and it is not a debt. The contract was for deferrment, yes, but I attempted that and no-one bothered to deal with it. I believe they too have broken the contract by attempting to collect when I do not work.

 

I am not disputing I had the loan, but I am disputing I owe it now. I am not supposed to pay it back til I am earning the correct amount.

 

So the question is; what is my next move? I can't CCA it, the agreement will be there. I can SAR it but the interest applied was in the contract. I could ask DLC to prove they own this debt and ask them to go to court over it. I could ignore it as I have done with all other DCA about this. At the end of the letter today it says

 

If your total income is less than £2034.00 per month you may be eligable to defer your loan for a period of 12 months.

 

but that doesn't mean they are talking about this outstanding amount!

[CAGisforME]

Hi Vamp,

 

Have a look at the "Other Institutions" area, there are a few of us having SLC problems. We have asked the mods for a new sub section.

 

There are a couple of folks on there that are taking the SLC all the way on that forum.

 

I've just managed to get my arrears and charges removed and am working to get the whole loan written off there.

 

I'm pushed for time today, but have a look there and see if it helps.

 

[rory32]

First of all do you still have copies of the letters you sent the student loan company. You may want to bypass the DCA and send them direct to the student loan company with a letter explaining what has happened. If not send them a recorded delivery letter explaining your circumstances. I would bypass DL&C as they are the usual bunch of barstewards, although maybe send them a letter reiterating that the account is in dispute.

Also do you still have your P45 or anything showing how much you get a year/have earned each year. If you don't it might be an idea to speak to the income tax people and see if they can send you something showing your income.

I would doubt very much if DL&C own the debt - any dealings I've had with them they've told me they own the debt and then have done something to prove that they don't like sending the debt back to the original creditor.

[Vampyra]

Hi both and thanks for your replies.

 

CAGisforME: I will pop over ther, thanks

 

Rory: Well apart from that 6 months I worked I have been a full time carer on benefits which of course can be proved via the DSS. No I didn't send recorded at the time and not copies kept - I'm afraid my mother was causing untold problems with her dementia - phoning the police and getting me kicked out of home on numerous occasions and many other things, so in truth I had far more important things than the SLC to be bothered with, if you see my point.

 

This owning of debt thing is a bit concerning, I too have had other DCA's claim in writing they own debt but have to refer back to their clients - wonder if that is legal? Thanks for your advice

[rory32]

Just had a thought, in your position I wouldn't care about them taking me to court - apart from having to arrange for someone to look after your mother - as the onus is on them to prove that you were ever in a position to be eligible to pay back the loan (under the terms and conditions of the contract). As you never were nothing to worry about. Plus if they do take you to court you may want to seek damages for the distress this has caused you and the fact you are a full time carer so have not been able to care for your mum while going to court.

[rory32]

With regards to them claiming to own the debt when they don't read this The Office of Fair Trading: Debt collection practices and click on Debt Collection Guidance - I think you'll find it falls under deceitful practices.

[Vampyra]

Yes reading that I think it is reasonable to suggest that if a DCA claims in writing they are the owners of a debt they are deliberately misleading the debtor., Especially if the OC allows them to send letters in their name stating the same!

[Vampyra]

Just wanted to add that after 2003 when I attempted the deferrments, I have never had a deferment form from them. And I have a disability as well. There were 2 loans, one from 1994 when I did an Access course and one in 1996 when I went to Uni.

[rory32]

Vampyra have a look at this if you haven't already read it SAAS Repaying Your Loan

Three points to note are (1) the reference to HM Revenue and Customs, these are also the same people who issue P45's and tax statements with your annual income etc. so they only have to look at their records to see what your financial position has been

(2) the section on cancellation

(3) the bit at the bottom Mortgage Style Loans and cancellation. This is the type of loan you took out.

Hope this helps.......Rory

[rory32]

Hi Vamyra,

Don't know if my last post was any use or not but I was thinking that you may have a case with the Information Commissioner as your info appears to have been processed incorrectly. Also did SLC let you know they were going to sell your account/pass it on to DLC - always worth complaining anyway even if they decide not to pursue it.

Also you could give SLC's complaints proceedure a try but I don't know if they'll do anything as they've already passed the account to DLC.