Open University Agreement

[bookboo]

I stupidly took out a OUSBA agreement with the OU. It is effectively an amount of money that is given to the OU by OUSBA and then the student (me) has to pay it off on a monthly basis from commencement of the course. I am liable to pay the full amount even if I withdraw, which I read in the terms and conditions of the agreement.

In the FAQ section it states that failure to pay the fees could result in credit refusal in the future. I was wondering, if I cease paying altogether would I be likely to get a CCJ? I have never had problems with credit in the past and have always paid my debts. Unfortunately on this occasion I am no longer in a position to pay course fee.

[boxtops]

I can't answer the question about a CCJ, but I would think that if you default on any finance agreement (which OUSBA is), then you will find this showing up on your credit rating if any future potential lender runs a credit report on you.

[buildersmate]

Your best option is to talk to the OUSBA and plead changed circumstances (or whatever it is that has changed). You may be able to negotiate something of a reduction.
Otherwise I think there is every likelihood that the organisation will seek to use the process of law to recover the contractual costs that you have committed to.

[Davethedog]

I would discuss it with them before you do anything.

They may be helpful whereas just stopping payment may put you in a world of trouble. I am sure they have dealt with similar situations before.

Good Luck.

[bookboo]

Thanks. I have just spoken to them and they have agreed to reduce the monthly payment by half. It's annoying because before I took out the agreement I had the funds available to pay the entire course fee and in fact rang them to make payment. It was only at the recommendation of a member of staff to take out the agreement which would stagger the payments instead of doing it in one lump sum. Oh well, lesson learn't!

[buildersmate]

But you must have spent the original funds on something else, so it is hardly down to OUSBA.
Anyway, a better outcome for you, so well done.

[tonywiltshire]

If you are unable to make the payments the OUSBA may well take action against you, it will depend on your negotiations with them and the amount outstanding. If they do and are successful you will end up with a CCJ, which may well cause you credit problems in the future, and any further higher education you may apply for can be affected by having an outstanding loan from the OUSBA..

[bookboo]

Thanks. I didn't spend the money, I had it in a small investment which I was hoping would increase by the time the course started. Unfortunately it went the other way. You are right though, it is my fault.