Student loan collection agency Glasgow

December 18, 2016
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I refer to your email dated requesting the following information
under the Freedom of Information Act 2000 (“FOIA”):

1) Use of Debt Collection Agencies (DCAs)
(a) The total value of student loan debt outsourced to DCAs per year for
the past 5 years, broken down by debt type if possible
(b) The total value of student loan debt retrieved via the use of DCAs per
year for the past 5 years, broken down by debt type if possible
(c) The total commission paid to DCAs per year for the past 5 years
(d) Please outline the method for choosing DCA(s), including the evaluation
criteria used to assess different DCAs

2) The sale of impaired/ delinquent debt to Debt Purchasers (DPs)
(a) The total book value of student loan debt sold to DPs per year for the
past 5 years and the price at which it was sold, broken down by debt type
if possible
(b) The total book value of student loan debt sold to each DP and the price
at which it was sold; if the list is extensive please provide for the top 5
DPs
(c) Please outline the method for choosing a DP, including the evaluation
criteria used to assess offers from different DPs

Response

I can confirm that having conducted a search of our records, the Student
Loans Company Limited (“SLC”) does hold some information that falls within
the scope of your request.

For question 1, I can confirm that we can provide data on student loan debt
that has been issued to Debt Collection Agencies (“DCAs”) for the past four
years - please refer to the attached spreadsheet. Data is not available
for any years prior to this. There are two types of student loans –
Mortgage Style loans which were offered to students who began their Higher
Education courses between 1990 and 1998, and Income Contingent Repayment
(“ICR”) loans from 1998 onwards. ICR loan repayments are collected through
the UK tax system, and the concept of arrears does not apply to ICR loans
where borrowers remain within the UK tax system. The ICR debt figures
included accordingly only applies to ICR borrowers who have moved overseas
and are therefore outside the UK tax system. We also issue grant
overpayment debt to DCAs. This data has not been included as it is
considered to fall outside the scope of your request, as it is not “student
loan” debt.

The DCA's were approached on the HMRC Framework (Reference Number: PS-2011
– Debt Collection Agency Services – Contract – 88). All potential bidders
were offered the chance to submit responses under further competition.

The Contract Award Criteria was as follows:

§ Cost Effectiveness - Weighting 35%
§ Quality - Weighting 30%
§ Technical Merit – Specific Requirements - Weighting 20%
§ Technical Merit – Security - Weighting 10%

Source: www.whatdotheyknow.com
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