Student Loan

[Bran1507]

I have an outstanding loan whilst I was a student a few years ago and have deferred it many times as I work part time and have a family. Recently a debt collection company wrote to me demanding £567.69!!! And informed me I must pay £150 a month back to them.

 

What can I do about this? I do not have this money each month...

 

What steps can i take to negotiate and is it legal what they are asking from me? I took the loan out over 13 years ago!

 

Your advise would be appreciated

 

 

Carol Gutierrez

[onanblues]

Hi Carol,

 

I too have a student loan from nearly as many years ago, which is with the Student Loans Company.

 

Who is your loans company and what name is the bailiff company?

 

Rob

[zootscoot]

Do you know if the SLC has sold the debt to DCA or simply engaged them to collect the debt?

[blueskies]

Whatever you do DO NOT ACKNOWLEDGE THE DEBT as statute of limitations may apply. I'm sure people with more knowledge will answer in more detail

[noobrider]

I am in the same position student loan about 8 years ago...surely SoL should apply?

[Bran1507]

Hi there,

 

Part of the loan has been taken up by Capquest debt collection based in Hampshire, I have acknowledged of course that I live at my current address, however I had had anycorrespondance from them for around 2 years!!

 

I am just struggling to pay the £130 per month they are asking when I work part-time, it is unreasonable and why hadn't they got in touch sooner

 

:-|

[zootscoot]

I would imagine the time would not start running under the Limitation Act until the last deferral expiry date. The cause of action would arise when the debt becomes payable ie at the end of deferral period- generally one year after you applied for deferral. Giving seven years from the date you applied for the last deferral.

You need to find out if Capquest purchased the debt or are simply acting on SLC 's behalf. If they have purchased you need to make a CCA request for a copy of the agreement between them and SLC which will tell you exactly how much they paid for the debt- probably a lot less than you think. This will give you greater flexibility to negotiate. If they can not produce this document the debt becomes unenfoceable.

 

If the debt contains penalty charges you can put on hold their enforcement of the debt by challenging the charges and they can not enforce a debt which is in dispute.

 

If the debt does not contain charges, a letter along the lines of the one below may help if they are threatening court action. This worked for me. You can adapt it to your own circumstances.

 

 

 

Dear Mr XXX

 

Re: Account/Reference Number XXXX

 

 

 

I am very disappointed that we seem unable to reach a satisfactory compromise in this case. As I have already explained, I can only afford XX per month at the present time. This is the only realistic payment proposal bearing in mind my personal budget. Please find enclosed budget sheet.

 

You have stated in correspondence your intention to commence proceedings in the County Court against me. The commencement of legal proceedings under such circumstances could be counter to the ‘Overriding Objectives’ of the new Civil Procedure Rules. You will be aware that the ‘Overriding Objectives’ underpin everything the court does. Moreover, paragraph 4 of the Protocols Practice Direction states that in cases not covered by an approved pre-action protocols, the court will expect the parties “to act reasonably….. in trying to avoid the necessity for the start of proceedings”.

 

 

I would suggest that your consistent refusal to accept my offer could be viewed as unreasonable given that a court is likely to award periodical payments inline with or less than I am proposing. I would ask the court to consider this matter with reference to the ‘Overriding Objectives’. This could leave you liable to pay your own costs. I’m sure that we could sort this without the need to take the time of the courts and the offer of £50.00 per month, is of course still open to you to accept.

 

Yours faithfully

 

 

xxxx

 

Hope this helps

[Bran1507]

Thankyou for your very informative reply. When you say a CCA request for a copy of the agreement, what does CCA mean? Consumer Credit Act? Anyhow sorry to sound so ignorant!!

 

I shall let you know how I get on. When I spoke to them last month, the only charges being incurred was those in accordance with SLC until they received my deferral information of which I have had acknowledgment back from SLC now

 

Thanks again

 

[zootscoot]

Hi Bran,

Yes sorry CCA is Consumer Credit Act. I'm a little lazy and not writing it out in full and assuming people know what I'm taling about. If you require further explanations on anything just shout.

Here is a copy of a template letter for a CCA request - I've pinched it from Seminole's post on another thread, hope he doesn't mind.

Dear xxxx

I no longer acknowledge ANY debt to your company. I require you to supply the following documentation before I will correspond any further on this matter.

 

1. You must supply me with a true copy of the alleged agreement you refer to in this matter. This is my right under your obligation to supply a copy of the agreement under the legislation contained within s.78 (1) Consumer Credit Act 1974 (s.77 (1) for fixed sum credit) - your obligation also extends to providing a statement of account. I enclose a £1 postal order in payment of the statutory fee, PO Serial Number xxxxx. (Or cheque)

 

2. A signed true copy of the deed of assignment of the above referenced agreement that you allege exists.

 

3. You are notified that you are obliged to supply these documents, whether you are the original creditor or not under S189 of the CCA 1974.

 

Non-compliance with my request is a criminal offence under the above Act and will result in a report being submitted to the relevant statutory authorities.

 

As you are aware, acredit agreement that is not properly documented and signed by the customer is totally unenforceable under the CCA and therefore is a complete defence to any court claim that is issued.

Yours faithfully

xxxxx

You might also want to do a search on the forum for Capquest. I'm sure lots of others have had dealings with them and it might give you an insight as to what you are up against. You might also want to read through the threads on Debt Collection Agencies (DCAs).

Keep us posted - any further questions just shout.

Best of luck

Zoot