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Joshua
Joshua, Lawyer
Category: Law
Satisfied Customers: 31727
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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I have a legal question about a loan. United Kingdom,

Customer Question

Hello, I have a legal question about a loan.
JA: Where are you? It matters because laws vary by location.
Customer: United Kingdom
JA: What steps have you taken so far?
Customer: Complaint with the company
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: nO
Submitted: 16 days ago.
Category: Law
Expert:  Joshua replied 16 days ago.

Hello and thank you for your question. My name is ***** ***** I will be very pleased to assist you. I'm a practising lawyer in England with over 15 years’ experience. Please be aware that although I will endeavour to reply to you promptly, I am also in full time private practice and so I may not be available to respond immediately and it may also take me a few minutes to prepare a reply. The site will notify you as soon as I respond. I look forward to working with you to answer your question fully.

Expert:  Joshua replied 16 days ago.

how may I assist in relation to the above please?

Customer: replied 16 days ago.
Hi Joshua, I Would like advise on a loan by the Student Loans Company.
Customer: replied 16 days ago.
They contacted me in October last year about an overpayment, they advised that they were aware of the overpayment the year before, but it took 12 months to inform me because of COVID-19.The overpayment itself does not accrue interest, however, it does make up the overall loan balance which does accrue interest. I have asked that the interest is removed for the period where they failed to contact me, but they are refusing.I want to know where I stand legally on the issue.
Expert:  Joshua replied 16 days ago.

  1. thank you. For the avoidance of doubt, this relates to an overpayment made to you by the student loans company - i.e. where they made an additional payment in excess of the loan agreement agreed with you as opposed to an overpayment you made to repay the loan?
  2. if so, did you not notice the overpayment that was made?

Customer: replied 16 days ago.
The loan amount was correct, but because I dropped out of university, I was not entitled to it, so they created an overpayment. But they took a year to notify me the ammount.My complaint is that if they notified me at the time of the overpayment, I could have paid it in full and avoided the interest.
Expert:  Joshua replied 16 days ago.
thank you. To play devils advocate though if I may for a moment, what was for example hypothetically stopping you from making a repayment at least of the capital based upon the amount you received into your account which were of course a known quantity?
Customer: replied 16 days ago.
what do you mean sorry?
Expert:  Joshua replied 16 days ago.

Were these amounts paid to you in to your account or to your university?

Customer: replied 16 days ago.
to me
Customer: replied 16 days ago.
they didn’t tell me the overpayment until 12 months after so I couldn’t have paid the ammount prior
Expert:  Joshua replied 16 days ago.

thank you. So why for example could you not have taken a decision to repay the overpayment received into your account as you would presumably have had access to the amount based on your bank account statement?

Customer: replied 16 days ago.
the overpayment was part of a whole payment. I wouldn’t have known the amount
Expert:  Joshua replied 16 days ago.

thank you. This was the issue that you were something not aware that an overpayment had been made or that you knew one had been made but did not know the amount and had no way of confirming the amount based on the loan documentation you held?

Customer: replied 16 days ago.
I didn’t know an overpayment had been made until they contacted me
Expert:  Joshua replied 16 days ago.
Thank you. My initial reaction is that a dispute in relation to the transaction may be somewhat challenging on the basis that you received the mknjes into your account and had the benefit of them for an extended period and presumably would or at least should have been familiar with the amount of loan made available to you and as such it is reasonable to expect that you should have been aware that you had received more than expected. 

I do not say the above to be negative but simply for the purposes of managing expectations and as a forewarning for arguments that may be raised if you choose to pursue a complaint.

However the above being said it is equallyplain that SLC failed in their administration on the loan and their failure you can certainly argue has added to costs if you can reasonably demonstrate you would have repaid an overpayment and had the means to do so. According whilst there is likely to be a difficulty in terms of a dispute in the main as above there is potential scope to at least limit the amount of interest charged if not remove it altogether to take account of the failure on the part of SLC.

You can find details of the complaints process here and who to escalate it to if you remain dissatisfied.

https://www.gov.uk/government/organisations/student-loans-company/about/complaints-procedure

Expert:  Joshua replied 16 days ago.

I hope the above is of some assistance but if you have any further questions, please revert to me.

Expert:  Joshua replied 15 days ago.

I trust the above was of assistance and that you do not have any follow up questions for now. If there is anything else I can help with please reply back to me though.

Expert:  Joshua replied 15 days ago.

I hope I was able to answer your question. If you would like to ask me another question in the future, you can add me as a favourite Expert. You'll have the option to do that on your "My Questions" page if you choose to rate our interaction or you can request me by name if you wish. Thank you again for visiting JustAnswer and see you again in the future I hope.