Student loans chairman offered his resignation

STUDENT L OA N S Company (SLC) chairman Christian Brodie apologised to ministers and offered to resign over “misleading” letters sent out by the agency in an attempt to recover debts, it has been revealed.

The “clear and unequivocal” apology on behalf of the SLC came in a meeting with Business Secretary Vince Cable last week. Mr Brodie’s resignation was not accepted.

The Government agency has been accused of using “Wonga- style” tactics in sending out letters from Smith Lawson and Company Recovery Services — a firm it set up — demanding repayment from graduates who were in arrears.

In a written ministerial statement, Universities Minister David Willetts said that ministers believe Mr Brodie has a “very important” job to do at the SLC and it would be unfair for him to take the blame for a practice that was nearly 10 years old.

Mr Cable met Mr Brodie, who took up his post in February, on Thursday to discuss the situation.

The SLC has been issuing letters to graduates who fall into arrears on their repayments under the name of Smith Lawson and Company since 2005, Mr Willetts said.

In total, about 309,000 people received letters, which were sent to individuals who had failed to respond to several contact attempts by the SLC.

The practice, seen as a “low-cost alternative” to referring these graduates to debt collection agencies, was approved in late 2004 by the SLC’s board at the time and ministers under the Labour Government, Mr Willetts added.