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Jak Bowtell
Jak Bowtell, Lawyer
Category: Law
Satisfied Customers: 159
Experience:  LLB (Hons) (ling.) ( franc.) (UEA) ARAeS
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I have a question about 'old style' student loans. I owe

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Hi, I have a question about 'old style' student loans. I owe about 2500 to Erudio loans company from student loans in the 90s. This was due to be terminated under the 25 year rule in October 2020. I was due to start repayments in January, but was travelling and dealing with family bereavement over Christmas and missed the letters sent to my home address giving me a deadline to pay the first repayment and arrears by the 29th Dec. (Which I was very willing to do). Having been away over Xmas, I did not receive the letter until January, and they have terminated my account. This means that they say I must repay the FULL amount of the loan, and that the write off no longer applies. I underrstand that it was my responsibility to arrange the repayments by the 29th December, but having called the when I returned to my home, and offered to pay the arrears and the monthly contractual payment until the Oct 2020 write off, they refused on the basis that my account was officially terminated on the 29th December. Is there anything I can do?
JA: Have you discussed the termination with a manager or HR? Or with a lawyer?
Customer: The person on the phone apparently spoke to her manager and he concurred that the account was terminated on 29/12 so by default the early write off is not applicable
JA: What is your employment status? Are you an employee, freelancer, consultant or contractor? Do you belong to a union?
Customer: I'm employed FT since September 19. I was deferring the loan for the last 2 years.
JA: Anything else you want the Lawyer to know before I connect you?
Customer: I was absolutely sure that I sent the Direct Debit Mandate to start paying the monthly contractual payment in December, but they say there is no evidence of this, and I'm afraid that I don't have evidence either.

Hello, this is Jim and I am a dual-qualified lawyer (UK and Republic of Ireland) and happy to help you today.

The best way forwards would be to make a complaint and then involve the Ombudsman. Have you done either yet? I can outline the procedure

Customer: replied 6 months ago.
no i haven't made a complaint yet. They have told me that it was my responsibility to intercept the letters sent to my home address, despite the fact that I was away for the Xmas vacation dealing with a family issue (the execution of my father's estate). I did not receive a phone call, text or email from them, which I sort of would have expected given that my account was in imminent danger of being terminated. I am more than happy to honour my original deal (pay off arrears in full and pay monthly contractual payment until OCT 2020 when write off comes into play). But they are sticking to their guns and say my account cannot by un-terminated, no matter the circumstances. I understand their position, but I can't help feel cynical about the fact that many of these loans will be written off and I feel that if they can 'get' one who defaults even slightly from the agreement, they will go after them for all the money they can get.

Thanks, ***** ***** review this is now outside my area of expertise. I will therefore opt out to let another expert assist you with your question going forwards. Please do not reply to this message as the question will stay with me and there will be a delay with the reallocation.

Many thanks.

Hello there, I’m Jak and I can help you with this, I think you’re quite right to be honest. However the first step would be to try to sort out everything with the creditor first and after that stage escalate it to the financial ombudsman, this should all be done before we go anywhere near potential legal action at this point and it will take a bit of time. Send the ombudsman all the evidence you possibly can about this. Verify whether the debt is still with the creditor or whether they have sold it on to a collections agency. If they’ve sold it to a collections agency, this will leave a six year mark on your credit file and you would be required to pay off the debt in instalments that you can afford. But hopefully the debt has not been sold on yet, in which case you really need to get the ombudsman involved and give them all the evidence you can. Please kindly rate my initial response, it will make sure the question stays with me now for follow up questions and also means I get paid otherwise Just Answer keeps the funds until the customer feels they’ve received a good response. I want you to leave feeling that you have indeed got all the information you need to proceed and I look forward to helping you further. I hope this initial response has at least clarified the position and the nexts steps you need to take going forward. Best, Jak.
Jak Bowtell, Lawyer
Category: Law
Satisfied Customers: 159
Experience: LLB (Hons) (ling.) ( franc.) (UEA) ARAeS
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