Erudio Notice of Default

[billy_79]

I have old style mortgage loans,

Recently transferred to Erudio

I've always deferred as under the income threshold,

 

But there seems to be some confusion (or other have received different forms/paperwork).

 

All the correspondence I've received from Erudio states that

the t&c are the same as they were with SLC, and they can't change them.

 

They can of course choose to enforce them more stringently, play dirty tricks etc, but they aren't allowed to change them.

 

I had a DD setup with SLC right from the start, but no payment has ever been collected,

it just sat there idle.

 

When my loan transferred to Erudio the existing DD was amended to be payable to them.

IT IS NOT A NEW DD, and the posters saying that Erudio set up a DD without their consent are mistaken.

 

Some people probably didn't have a DD with SLC at the time of transfer

(either they'd cancelled them, or changed bank accounts and the old one was lost).

 

I seem to recall (might be wrong, it was 15 years ago!), that one of the t&c of SLC loans

were that you were supposed to setup a DD when taking out the loans.

 

This is why Erudio are saying that you have to have a DD setup - it was always a condition from the loans inception.

 

As for the deferment form, my form is 6 pages long,

BUT THERE ARE NO NEW T&C mentioned anywhere on it.

Do other's have different forms, or are they mistaken about the new t&c?

 

Yes it is bigger, but most of it is reconfirming details that they already have,

and came from SLC (name, address, NI number etc).

 

There is a new DD mandate section, but most people should already have a DD setup (as above).

It says on the form that you only need to provide DD details if there is no DD already setup.

 

There aren't many new, intrusive questions on my deferment form (beyond the homeowner question, that is a new one),

it's all exactly the same stuff that went on the SLC form, but more spread out.

 

They are asking for a copy of your self assessment tax return/SA302, if you do one.

SLC were entitled to ask further questions, request this information if required,

it's just that most of the time, they accepted your information without the need for extensive evidence.

 

I do think Erudio are playing by the rules with the deferment form so far (it's early days yet...)

 

Having said all that, I am pondering what to do next myself

- I've always had a low enough income to defer, currently I'm way below the threshold for repayment,

and I don't expect that to change in the next few years.

 

I've always deferred properly with SLC, and everything has run smoothly

and is currently up to date (my loan isn't in default or anything).

 

My choices are either:

 

a) continue the same way and reply to Erudio with my deferment application,

 

b) go awol and not even enter into any correspondence with them, and try and string it out to 6 years and get it statute barred.

 

The risk with

a) is that Erudio might start being silly

(it is their MO as debt collectors after all).

E.g. taking DD payments when they shouldn't etc

(I'm loathe to cancel the DD at this stage,

as they could interpret that as breaking my terms of the agreement

and kick up a storm.

I'm still 15 years away from 50, when I believe the loans are written off anyway.

Chances of deferring for that much longer are pretty much evens in my situation.

 

Now might be a good opportunity to question about it, and go for route b).

 

But it's a gamble as to how vociferously Erudio are going to be in chacing me.

They don't have my current address (loan is still registered at my parents home,

so I still pick up the post, but I'm not on the electoral roll there).

 

But I don't want my parents to start getting/feeling harassed by Erudio/other collectors. It wouldn't be difficult to track me down id they so desired.

 

I may be in a position to get on the property ladder fairly soon,

my credit rating is currently absolutely perfect

(never missed a bill/loan payment in my life), and I don't want Erudio to trash it.

 

Just don't know what to do at present?

 

I'm sure that as soon as I get on the radar with them (by returning the deferment form),

 

they'll have me flagged as a live one and are more likely to chace me harder,

 

so it's now or never.

[dx100uk]

own thread created

 

dx

[dx100uk]

let us know how you get on

 

dx

[billy_79]

I've done a bit (quite a lot) more reading on here and other sites, and my original loan agreements and terms.

 

Now I see what people are saying about them trying to sneak in a change of t&c - by notifying CRAs about loans that are in deferment. Not happy about that.

 

It seems that I can either go all in or all out with this

- either I play totally by the rules and continue to try and defer (I'm fully eligible to).

 

Otherwise any minor infraction - cancelling DD, or even getting even slightly behind with (their perceived) repayments,

could allow them to ask for full, immediate repayment of the loan, and jeopardise it being written off (which would happen in 12 years from now).

 

My intention at the moment is to play safe (ish), and send my request to defer as a letter,

and include the evidence that is actually required (at this stage - they can always come back and ask for more, if they are specific in what they want).

 

I will also make it clear that I specifically do not agree to the t&c changes set out on their standard deferment form.

 

The only risk I can see is that they try and throw it back at me,

and insist that I complete their form, which they have no legal basis to do.

 

Or that while they are waiting for the extra 'evidence' the reinstate my repayments, which would be a major pain.

 

I suppose I could use their form and cross out any changes to t&c that I am not accepting.

 

Then they have no argument to say that the deferment was delayed due to not using the right form.

 

another thing that seems to be missing (and I might have overlooked it), is a deadline for replying with a deferment application.

 

They state that my current deferment expires on xx/05-2014, but not when they need the paperwork by in order to continue deferment.

 

I don't have any copies of the loan agreements signed by me (there isn't even a place where the signatures should be on my copies),

and I'm pretty religious with paperwork,

so I doubt that I've discarded them.

 

Is this where I need to do a SAR (to SLC, being the original lender), to get copies of this kind of stuff?

[dx100uk]

its always a good idea the SAR the OC in any debt 'dispute'

 

as fr the agreements

 

they should come from the new owner via CCA requests.

 

dx

[billy_79]

Something I'm trying to work out here

- is it totally accurate that Erudio are operating as 'just another DCA'?

 

They are not chasing debts on behalf of the original creditor,

they have bought the entire loan account,

so does that not mean they take on the role of the original creditor?

 

For example,

if I took out a loan with Barclays,

and later on they sold their personal loans division to HSBC

- do I become an HSBC customer with the original t&c passing on,

or is HSBC now a DCA as they are taking the repayments on the loan?

 

Is there no way in law that one company cannot sell a loan book to another company

without it being the same as handing a debt over to a 3rd party (DCA) to pursue?

 

I'm still not sure the best approach is to treat this as a regular DCA scenario

(even though that's clearly what Erudio's background is).

[dx100uk]

yes they do operate as the OC

 

but only within the rules & T&C's the OC ran under

 

they cant make up their own rules.

 

dx

[Rosskie]

If they operate as the OC then they will have those rights too then - CCJ's, defaults.

[dx100uk]

yes but I very much doubt they'd be brave enough.

 

dx

[billy_79]

I have old style student loans from the late 90's.

I've always been under the income threshold and deferred every year without issue.

Then Erudio came along.

 

 

At first (about two years ago) they kept sending me their deferment forms,

and I kept writing back refusing to complete and sign their form,

but provided all the information they should have needed

(payslips, P60, tax credits notifications, even part of my tax return).

 

I got the occasional stroppy letter from them, but as far as I was concerned, I had deferred.

I don't think I've been sent any further requests to defer,

and I've ignored all their correspondence since (probably a mistake).

 

 

I've always asked them to keep everything in writing and not to call,

but they keep phoning my parent's landline

(the only phone number they have on record for me)

and hassling them.

 

Now I've been sent a Notice of Default, and they are asking me to pay £4000 immediately.

I've not kept myself up to date with what's been going on with Erudio for some time,

so I don't know what the current state of play is?

 

I'm perfectly entitled to defer, my income is nowhere close to the threshold,

so it should be a clear cut case to defer.

What should I do now? I

 

 

t's obviously years away from becoming statue barred, so continuing to ignore is not an option.

I have a perfectly clean credit file, and I'm about to apply for a mortgage, so I really need to keep it that way.

 

I notice they have an online deferment application system now, should I sign up and go through that?

Or should I write another letter?

 

 

Contest their Notice of Default?

Request to defer again?

Dare I speak to them on the phone,

or is that a waste of time?

[dx100uk]

they cant default you simply because you refused to fill out their DD mandate

as they've since been TOLD they cannot do that.

 

 

The new form still features a Direct Debit Mandate request, however, this is optional rather than compulsory

 

 

pers i'd fill out an old copy of the SLC deferment form and send that back.

[billy_79]

they cant default you simply because you refused to fill out their DD mandate

as they've since been TOLD they cannot do that.

 

 

The new form still features a Direct Debit Mandate request, however, this is optional rather than compulsory

 

 

pers i'd fill out an old copy of the SLC deferment form and send that back.

 

Post number 10 above is the latest - they've issued my a Notice of Default. I tried to defer just over two years ago, and haven't been in contact with them since then. I realise I should have done, but couldn't face dealing with another sequence of being ignored and resent their forms. Is it too late to try an recommence deferment now they've issued the default notice? Do I need to handle it some other way? I can provide evidence of my income over the last two years if they'd consider a retrospective deferment, but I'm sure that's wishful thinking!