Erika Student Loans is a consortium established by Arrow Global debt collectors and private equity firm CarVal Investors in 2013.
The company was a successful bidder in an auction to buy a malfunctioning British student loan in 2013, paying £ 160m to buy a debt of £ 890m taken between 1990 and 1998. Of the loans purchased, 46% of the borrowers earned below the requested amount to make the payment, 14% made the payment and 40% did not make any payments.
The Independent notes that Arrow's debt collectors acted very badly during the credit crunch and that similar organizations have a reputation for unwarranted threat letters, phone calls and visits; David Willetts has ignored the implications for former students, whose primary goal is to reduce public debt. CarVal Investors, private equity firms provide most of the cash.
Video Erudio Student Loans
Criticism
Since taking over the loan, Erudio has faced criticism from current loan holders and also from financial commentator Martin Lewis for not being able to cope with the large volume of requests for delays and for mistakenly taking cash from borrowers' accounts. According to the Guardian, some Erudio customers have noted attempts to change the conditions of the loan. While the SLC can only deliver payment details by default, Erudio has written to this deferred loan holder asking them to agree to let the company submit details to the credit agent. This could potentially prevent them from taking out loans in the future In April 2016, another mistake saw companies demand payment after failing to send 250,000 deferred forms with some customers claiming they were "confused by Erudio's administrative problems." The company denies disappearance is a tactic designed to trick people into repaying loans and publishing public apologies.
Maps Erudio Student Loans
See also
- Sallie Mae, an American based company for student loans behind Arrow Global.
- Student loans in the United Kingdom
External links
- Global Arrow
- CarVal Investor
- Erotic Student Loans
References
Source of the article : Wikipedia
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