Erudio (pre98 student loan) & child maintenance & child related benefite query

[Gardenia101]

Hi, new to this forum & the nightmare that is Erudio.

I have 3 pre98 loans & have deferred for the years I've been on maternity leave/SAHM & for years since when I've worked part time as a now single parent. Deferment has never been a problem with SLC, & they advised that the child maintenance my ex-husband paid into my account was not my income but theirs, & as such would be excluded from my total income. Sadly I don't have this in writing (it was during a phone call) but I do have copies of letters to SLC where I've included a comment that I've disregarded £X as it is child maintenance, & they have never advised me otherwise. My ex has never paid me spousal maintenance.

Following other forums it appears Erudio do count child maintenance along with other child related benefits. The only definite comments I can find are that certain disability benefits & disability related expenses are excluded from total income. But I can't find any info about child maintenance - does anyone have any ideas?

Thanks in advance.

[Kati]

Re: Erudio (pre98 student loan) & child maintenance & child related benefite query

:bump2: anyone have any ideas???

[Johnboy007]

Re: Erudio (pre98 student loan) & child maintenance & child related benefite query

I managed to find this out on 'nidirect' government services web site. http://www.nidirect.gov.uk/how-does-...ffect-benefits

Child maintenance payments will not affect any social security benefits received as receiving parents can keep all child maintenance paid and it will not affect their benefits. Housing Benefit and tax credit awards also won’t be affected by child maintenance
If you’re on benefits, it’s your responsibility to let the Social Security Agency know about your child maintenance payments (for example how much you’re receiving and how often).

So I would say that it is not counted as income, if it was you would see a reduction in your benefits.
Tell Erudio to bog off as it's not classed as income by the Government

[Johnboy007]

Re: Erudio (pre98 student loan) & child maintenance & child related benefite query

On reflection this makes sense.
The money that makes up the child maintenance is from the payers income, not the receivers.
It belongs to the child and has already been taxed from that income.
So they can't very well count it as income again, and tax it for a second time......

[Gardenia101]

Re: Erudio (pre98 student loan) & child maintenance & child related benefite query

Thanks everyone - you've echoed what I think should be the case, but I'm worried that they'll still try to include child maintenance if there isn't anything that specifically says they cant (rather than using the above examples as reasons why they shouldn't, if that makes sense).

I receive child benefit & child/working tax credits & have always been told NOT to include the CM I receive, & when I was self employed & completing tax returns I was told NOT to include CM because of the double taxation issue. I don't claim any means-tested benefits like housing benefit, so can't comment on those.

I'm below the deferment threshold this year even if they count CM, so it shouldn't be an issue for me personally this year - its the principle. I'm also getting fairly close if CM is counted, & as the threshold is being reduced from tomorrow, I'm worried I could get caught out in further years if this isn't clarified now & the threshold continues to decrease each year.

If there is a change & CM is counted it's going to affect lots of us - & effectively penalise those of us who are single parents with children....

[Johnboy007]

Re: Erudio (pre98 student loan) & child maintenance & child related benefite query

Thanks everyone - you've echoed what I think should be the case, but I'm worried that they'll still try to include child maintenance if there isn't anything that specifically says they cant (rather than using the above examples as reasons why they shouldn't, if that makes sense).

I receive child benefit & child/working tax credits & have always been told NOT to include the CM I receive, & when I was self employed & completing tax returns I was told NOT to include CM because of the double taxation issue. I don't claim any means-tested benefits like housing benefit, so can't comment on those.

I'm below the deferment threshold this year even if they count CM, so it shouldn't be an issue for me personally this year - its the principle. I'm also getting fairly close if CM is counted, & as the threshold is being reduced from tomorrow, I'm worried I could get caught out in further years if this isn't clarified now & the threshold continues to decrease each year.

If there is a change & CM is counted it's going to affect lots of us - & effectively penalise those of us who are single parents with children....

Start by using Erudio's own internal complaints procedure.
It is important that you follow this procedure through to either a satisfactory solution, or to the end of the procedure.
Following which if no satisfactory outcome, you can make a complaint to the Financial Ombudsman.
Just tell them that CM is not your income, the father has given it for his child, to clothe and fed him, not as your personal income.

This is Erudio complaints procedure.
Our internal complaint procedure is designed to resolve problems and difficulties quickly and easily.

1. Making a Complaint
We will deal with your complaint in an efficient manner and in accordance with Financial Conduct Authority (FCA) requirements for handling complaints and the Financial Ombudsman Service arrangements. To enable us to deal with your complaint promptly, we request you contact:
Erudio Student Loans, PO BOX 580, Rotherham, S63 3FR
Telephone: 0845 217 1134

Please provide your full name, full postal address and your Erudio Student Loans account or reference number.

Please set out the facts of your complaint in the order of events including the date and time the problem arose. State clearly your discontentment and how you expect Erudio Student Loans to resolve it. Please also ensure where possible you enclose copies of any relevant correspondence and other evidence.


2. Acknowledging your Complaint
If your complaint cannot be resolved by the close of the next business day following its receipt, we will send you a written acknowledgement of your complaint within five working days of receipt and a full investigation will follow.

We will provide a copy of this document on request and when acknowledging your complaint.


3. Investigating your Complaint
Your complaint will be investigated diligently and will be assessed competently and impartially. We may ask you to submit copies of documentation and may request further information from you to assist us with our investigation.

If we have reasonable grounds to be satisfied that another organisation may be solely or jointly responsible for the issues raised, we will forward the complaint, or the relevant part of it, to that organisation. We will write to you to confirm our actions and provide contact details of the organisation concerned.

After investigation, we will endeavour to send a final response to you within eight weeks of receipt of your complaint. If we are unable to provide you with a final response within this time, we will send you an update and explain why we have been unable to respond fully.

If more than eight weeks from the date of your complaint has passed and you haven’t received a final response, or you are dissatisfied with the final response you receive, you can contact the Financial Ombudsman Service (FOS), who may be able to help further. You can contact the Financial Ombudsman on the details below:

Financial Ombudsman Service (FOS)
Exchange Tower
London
E14 9SR
Telephone: 0300 123 9 123 OR 0800 023 4567
E-mail: complaint.info@financial-ombudsman.org.uk

The Financial Ombudsman only has jurisdiction in respect of Eligible Complaints as defined by the FCA rules and we can not guarantee that you are an Eligible Complainant. In any event, you must refer your complaint to the Financial Ombudsman within six months of the date of the final response you receive from us. An explanatory leaflet will be provided.

If you need help in constructing your complaint, please let me know.

[Johnboy007]

Re: Erudio (pre98 student loan) & child maintenance & child related benefite query

This from CAB:

If you get child maintenance

Child maintenance is not counted as income for means-tested benefits such as Income Support, income-based Jobseeker's Allowance (JSA) and Housing Benefit.
This means if you're getting maintenance you won’t get less money in these benefits. Other benefits which aren’t means-tested won’t be affected either.
Just point Erudio to the government web site that deals with CM. http://www.nidirect.gov.uk/how-does-...ffect-benefits.
They can then see for themselves that CM is not counted as your income.

[Gardenia101]

Re: Erudio (pre98 student loan) & child maintenance & child related benefite query

This from CAB:

If you get child maintenance

Child maintenance is not counted as income for means-tested benefits such as Income Support, income-based Jobseeker's Allowance (JSA) and Housing Benefit.
This means if you're getting maintenance you won’t get less money in these benefits. Other benefits which aren’t means-tested won’t be affected either.
Just point Erudio to the government web site that deals with CM. http://www.nidirect.gov.uk/how-does-...ffect-benefits.
They can then see for themselves that CM is not counted as your income.

Erudios Deferment Application Form Guide clearly states they include CM as income - I didn't see this guide on their website when I initially asked the question, so apologies for missing it.

I can't help feeling its unfair - this CM is from income my ex husband has earned, not me. If we we're still together then his income wouldn't be taken into account for the purposes of loan deferment. I feel I'm being penalised for being a single parent...

[Johnboy007]

Re: Erudio (pre98 student loan) & child maintenance & child related benefite query

I looked at the 'guide' and they really do tie you done.
I was surprised that they counted CM as income, and it doesn't seem right to me......

[Gardenia101]

Re: Erudio (pre98 student loan) & child maintenance & child related benefite query

I looked at the 'guide' and they really do tie you done.
I was surprised that they counted CM as income, and it doesn't seem right to me......

Especially since the old SLC didn't count CM as income.

I've read on another thread that Erudio feel that the SLC have incorrectly deferred people for years by not including CM (& possibly other child related benefits) as income, which is how they're getting around it.

I don't think that is fair - it isn't our fault if we've been incorrectly (in Erudio's eyes) deferred & it feels like a huge change to the whole ethos of the student loans; how we wouldn't have to pay them back if we didn't earn enough.

I'm also not happy about how much extra info Erudio are asking for, compared to whats in the regulations - eg: home owner status etc. which should have nothing to do with deferral.

As I've said, I don't think I'll be near this years threshold (even if CM is counted) & I'm doubt that my earnings will increase (health problems) so I don't think I'll personally be affected. But this may affect lots of other single parents unfairly, & could affect huge numbers of students to come if their loans get sold off in the future.