Student Loan Deferment Conspiracy ? (long)

[daveydavey]

Update October 2011

 

The SLC are at it again, fraudulently creating arrears on people's pre-98 Student Loan accounts !

 

This year i sent my deferment form slightly after the previous year's deferment-end-date, & requested on the form that they backdate it in line with the Legislation, which allows for a 3 month backdating time limit. Guess what? they didn't backdate it, thereby falsely creating arrears on my account again!!

 

I notice also that the content of the better regulation executive links on this thread has been deleted.

 

Have just emailed off a formal complaint stage 1, will keep you posted.

 

Don't give in to these crooks at the SLC fight them all the way!

[daveydavey]

http://www.independent.co.uk/news/education/education-news/student-loans-firm-faces-record-level-of-complaints-2280812.html

[2ltr16valve]

The SLC make my blood boil !!

 

I am in a similar situation as much as dealing with the incompetience and brush off/pass the buck attitude at the slc.

 

My local education authority completly messed up my applicaiton, awarding me grants that I now know I was not entitled to (did not know at the time), in short I was starting a nhs nursing degree... which is funded by the nhs.. so was not entitled to full support as I would receive a bursary.

The LEA awarded full support as they would for a normal degree student, I have made a formal complaint and gone through all the process - LEA (council) admit 'partial' responsibility !! but will not wipe the extra debt.... the extra debt that I am now expected to pay back, as they say the declaration states "I agree to repay any overpayment howsoever caused" - according to them, this immunes them from being liable !! Can you believe it !!

 

Got on to the SLC, and requested that they wipe that part of the debt as I would never have had to pay it back anyway - and if it had been offered as a loan I would not have accepted that amount. Outright no... we do not have the power to do that.

 

My MP has even written to the sec. of state for business innovation and skills - who is responsible for the SLC, again - outright no - Does not have the power apparently, even though the leglislation says otherwise.

 

They are a complete shower !! the lot of them.

 

I am now no longer at uni, and did not finish my course due to illness caused directly by the stresses their mistakes casued (I initially ended up with phnumonia). So I am now receiving Income Support - which will mean no doubt I will be in line for all their abuses soon !

[bureaucrazy]

Update October 2011

 

The SLC are at it again, fraudulently creating arrears on people's pre-98 Student Loan accounts !

 

This year i sent my deferment form slightly after the previous year's deferment-end-date, & requested on the form that they backdate it in line with the Legislation, which allows for a 3 month backdating time limit. Guess what? they didn't backdate it, thereby falsely creating arrears on my account again!!

 

I am aware that SLC sometimes backdate deferments up to 3 months. However, can somebody please refer me to exactly which document/publication or law or regulation states that as a rule, borrowers are entitled to backdate up to 3 months AND that SLC are obliged to do so?

 

I have searched high and low for written evidence of this and can find nothing to prove a 3 month backdating right. It was told to me over the phone and I have had deferments successfully backdated in the past, but I need to prove whether or not it is a right. As far as I can tell, the SLC can decide to backdate or not at their discretion and are within their rights to refuse backdating or ignore requests. If you have arrears because the SLC ignored your backdating request then they are entitled to punish you. Please show the evidence otherwise, because I do not believe that a 3 month backdating rule exists.

Edited October 18, 2011 by bureaucrazy
typo

[daveydavey]

It's stated in Law : " Each deferment period will last for 12 months beginning on a date the lender tells the borrower. This date will be not more than three months before or two months after the date the lender accepts the borrower’s deferment application"

 

http://www.legislation.gov.uk/uksi/1998/211/schedule/2/made

[bureaucrazy]

It's stated in Law : " Each deferment period will last for 12 months beginning on a date the lender tells the borrower. This date will be not more than three months before or two months after the date the lender accepts the borrower’s deferment application"

 

Thanks DaveyDavey,

 

My interpretation of the above is that the SLC is free to choose to start the 12 month deferment period on any date they like so long as it is not more than 3 months before or 2 months after the date they accept the deferment application from the borrower. The date they accept the application probably extends beyond the date they receive the form to allow time for processing. So, this legislation does not give the borrower a right to have their deferment backdated 3 months.

 

If however, the SLC have published some policy or document or have put in writing anywhere that the borrower has a right to backdate 3 months from when they (SLC) receive the application, it could be used as evidence that the contract between the the SLC and the borrower gives a 3 month backdating right. Without that piece of paper, I'm afraid we have no leg to stand on. If you can find it then please post on this forum so we can all demand 3 month backdating.

 

In my case the SLC withdrew money from my account for 3 months before starting the deferment even though I asked for backdating and they would not refund my installments. I cannot prove they have done anything wrong.

 

Good luck.

[daveydavey]

just had a phone call, they will backdate the deferment 3 months & my arrears are now cleared.

 

In your case, i would say that if the SLC take 8 weeks or so to process a simple deferment form, you are being penalised by their tardiness / inefficiency / maladministration. Up to you if you want to accept it, if you use the formal complaints procedure & take it to stage 3 (excecutive level) if you need to, you could find the arrears are wiped out. It may also be prudent to cancel the direct debit with the SLC if you wish, so that they are unable to take funds out of your account due to the above, it's ultimately up to you how much you wish to fight it. In my case, I've fought it and won and have not had to pay any unjustified 'arrears', I'm aware of many cases where people have accepted what the SLC has said as gospel, not questioned it, not wanted to put up with the harassment, and have given up and paid the 'arrears' supposedly owed by them, sometimes thousands of pounds. Ultimately the choice is up to the individual.

I personally believe that if the founding principle of student loans is that they only become repayable when a borrower's income reaches a certain level (a principle that still holds true today), then a borrower has a right to resist and fight against this when it is being subverted by the very people who are supposed to be upholding it, the Student Loans Companies, under the watchful eye of the Government.

[bureaucrazy]

I'm glad you had success. It's encouraging and I totally agree that everyone should stand up to SLC. The ignored backdating request happened to me about 2 years ago and I wrote in to complain (recorded delivery) but got no reply. I may be out of time for ombudsman help, etc. but I may try to raise the complaint again. My line of attack was to claim the money back from my bank under the direct debit guarantee. Then the bank would get it back from SLC and probably charge them on top. But I can't convince the bank that the withdrawls were unauthorised without evidence of a three month backdating policy. How did you manage to convince them that there was a 3 month backdating right?

[TickledPink]

I came across this thread by accident. I've encountered the same problems as the OP described 4 years ago.

 

I've long suspected that SLC were deliberately losing deferment forms. I could virtually guarantee that each year at least one deferment form will go 'missing in the post'. One year, three went walkabout, landing me with arrears. So this year I decided to take my time. Should have sent it back at the start of the year. Of course my arrears will go up but they'll only get what I can afford anyway. Think I might return it this week.

[renee125]

I've got problems with honours loans who are now demanding full payment of the loan. I moved and apparently didn't inform them so was 5 months in arrears. I applied for deferment and They backdated 3 months but still want the 2 months. I'm unemployed so couldn't pay. So they added £40 interest a month plus £20 letter. The arrears doubled as a result. I'm appalled at the interest rates! My arrears was £300 so £40 a month is well over 100% apr unless they are counting the whole loan which they shouldn't have. Anyway I'm happy to go court. It's really disgusting

[nellynellynoo]

I just stumbled accross this forum, and I had to join and write down my experience too.

 

I sent off my deferment form for 2004, and never heard a word as per usual. I forgot all about subsequent deferments as I never earned anywhere near the limit, and I never heard another word from them. The loans were registered at my mothers address, where she still lives, and she can confirm that we received no communication at all. One day out of the blue in late 2007 I received a call (On the mobile number I have had all along which the Student Loans company had!) - "Hallo Mr X I need you to pay your arrears of £3700 today".

 

It turns out that my deferment form was 'lost' and that in the absence of any communication from me, which they could have had by simply lifting the telephone, or dropping me a line, they decided to secretly charge me £100 per month in arrears. They only got in touch after 37 MONTHS - when the arrers were almost the total amount of the loan.

Since then I've had all the harrassment that others have detailed here, ie. threats, lies, debt collectors, threats of court action, repettative phone calls etc. All along I've stuck to my guns, and said that this is illegal, and there is no way I'm paying anything. I used to get regularly hassled by either HSS or Penine but they go quiet for while, and try again sporadically. I have even had letters charging me for 'finding me' at the address I was still living at!

 

They claim to have sent me documents throughout the 37 months, but they can't produce any evidence for this when I ask. I get the same ill informed operators ringing me and asking the same things ie. 'Pay up!', and all I do is refer them to the notes on my case which they obviously haven't read - then tie them up in logic, or ask for the proof, or perhaps talk ethics with the operator for a bit. You would think after 5 years of arguments I might have been contacted by a manager or senior handler of some sort, but I have not. I believe its always just been low level junior call centre/debt collecter operatives .

 

For a period of several months last year I think, my interest on the loans went in to negative interest, and was actually reducing the loan amount I thought this was great, and it can clearly be seen on the statements, but alas it suddenly changed without warning, and of course I didn't receive any reason for this - Anyone else had this?

Basically I'd just like to add my eperiences to this thread, and say stick to your guns - don't be intimidated, and if you are in the right, and you know it, they will not be able to push you. If you earn below the limits don't be tricked in to paying.

Edited February 27, 2012 by Conniff

[multicolour]

I thought I was the only one who had noticed this little game that HSL and Student Loans like to play. Unfortunately I cant share with you everything I know but basically I sat for several years in a chair hearing calls from students telling me they had sent the forms to the company who denied receiving them, by this time the process had got to court. Probably thousands of students were made to pay back their loans even when they normally should not have been paying them back. However by getting a court judgement the company could then change the terms and make the loans like every other debt. In other words get payments below the normal wage thresholds.

 

As a graduate I knew that people were telling the truth and in any case when you have heard the same story enough times you know but in the position I was in, nobody wanted to hear me. Plus in addition I am still having to defer loans myself and have a file pretty thick now since 94 of the numerous complaints I have myself have had to submit. Now abroad the company are finding excuses to write to me several times a year and guess what even though they have had my new address for nearly 2 years they are still sending the odd deferment form and letter to my old address. Moreover one of my deferrmen forms has arrived late of course. Still the complaint letter has been sent, copies have been taken of everything and its all gone by registered post. Know anyone picking up this thread that you are right, these **** bags are not playing by the rules.

Edited February 27, 2012 by Conniff

[Francis55]

Good morning, I have just been taking a look at some of the messages regarding Student Loans. This is because my Son in Law telephoned the student loans people to change his address and was told that he now owes £**** immediately because he did't send back his Deferal Forms. He was horrified as he duly returned his forms in December last year and they insisted that they hadn't had them also saying that they have written to him on "sereral occassions" Gues what he hasn't recieved any corres[pondence from them whatsoever. Despite this the 2 people he spoke to yesterday evening were rude, unhelpfull and patronising and made demands that he pay up or else. He now has to wait for them to telephone next week as they said he must give them a financial statement and make a suitable offer of payment plan. Are there actually any laws to protect people like my son in law and where do you ngo to complain about the way these people are abusing my son in law and the many thousands who are driven to despair ???