Student Loan & Data Protection Act 1998

[pearandbanana]

Hello again to all

I recently posted about a debt collection company called Arrow Global and its subsidiary "Erudio" who are threatening and intimidating people with student loans, presumably because they have recently taken on the debt and have decided to have a bit of a push on it.

Thanks to one poster here who very kindly provided copies of the original contracts, I have already established that at least one of their threats to me is in contradiction to the T&Cs of the contract. So far so good. However, I have read that they are threatening to report people who defer to CRAs. My issue with this is that the option to defer is within the T&Cs of the contract, does not imply financial irresponsibility, and should not be used as an instrument of intimidation on specific customers.

In the original contract, Section 16: Disclosure of Information, reads thus:

The Loans Act prohibits us from disclosing information about you to anyone else for use for soliciting custom for goods or services. The Data Protection Act 1984 also contains protections in relation to the disclosure of automatically processed information about you. Subject to these prohibitions and protections, and to any other relevant statutory provisions, we may however, if we judge appropriate, disclose to any person any information concerning or relating to this Agreement.

I am not a solicitor, so I am unable to understand fully the Act in question, which I have downloaded and attempted to understand. My question, therefore, focuses on that neat little "prohibitions and protections, and to any other relevant statutory provisions" in there, and what exactly they can release about our accounts, to whom, and are they able to use it as a threat.

Many thanks - I had the opportunity to study law and chose diplomatic history instead. A fat lot of good that did me...

[Nibbler]

Re: Student Loan & Data Protection Act 1998

I am not necessarily saying I agree with this, but the official line from BIS/ministers is this:

Sharing of data with credit reference agencies:


In the UK, it is generally agreed that reporting relevant and appropriate levels of information about credit agreements and how they are being paid is an important part of the process required to support responsible lending and borrowing. Erudio has discussed the content of the disclosure of information sections of the terms and conditions with the Information Commissioner’s Office. Erudio considers that the reporting of accounts to credit reference agencies is in accordance with the terms and conditions as specified in section 16 (Disclosure of Information) of borrowers’ credit agreements that were issued before 1998.

The terms and conditions are different for borrowers with loan agreements from 1998 onwards and in these cases disclosure will only occur if the account is in arrears or default as specified in part (b) of section 12 (Disclosure of information). Borrowers with post-1998 agreements are being offered the option to consent for their up to date accounts to be reported. If consent is withheld, these loans will not be reported to CRAs unless they are in arrears or default.

A couple of points there:

- Erudio have 'discussed' the matter with the ICO. Does not actually say what the ICO advice or guidance was in those 'discussions'.

- Even if ICO told them it was OK, then the iCO have been proved wrong in the past.

Actually, just yesterday. See: http://legalbeagles.info/moneysaving...n-credit-file/

- All the statements actually says is that "Erudio considers that the reporting of accounts to credit reference agencies is in accordance with the terms and conditions as specified in section 16"

Well, Erudio can consider what they like. They can consider that the earth is flat and that Elvis was a shape changing alien that is now posing as Kylie Minogue.

Doesn't necessarily make it true.

[enquirer]

Re: Student Loan & Data Protection Act 1998

A series of half-truths intended to intimidate the unwary.