ELDS (External Lending Deduction Scheme) is a government-managed scheme that allows loan repayments to be taken directly from certain benefit payments.
We only consider ELDS when we've been unable to agree another suitable repayment arrangement with you. Wherever possible, we'll always try to work with you first to find a fair and affordable solution.
How Does ELDS Work?
If ELDS is set up:
- The Department for Work and Pensions (DWP) deducts an agreed amount from your eligible benefit payments.
- The deduction is usually made when your benefits are paid.
- The DWP then sends the payment to Fair for You, where it's applied to your loan account.
Once the payment has been received and processed, your loan balance will be updated.
Why Has My Balance Not Reduced Yet?
It's normal for ELDS payments to take some time to appear on your account.
Although the deduction is taken from your benefit payment, the DWP doesn't send the money to us straight away. They process the payment first and then forward it to us, which can take several weeks.
This means you may notice the deduction from your benefits before you see your Fair for You loan balance reduce.
Please don't worry if your balance doesn't change immediately. We'll update your account as soon as we've received and processed the payment.
Can I Still Contact You About My Account?
Yes. If you have any questions about your repayments or you're unsure whether ELDS has been set up, please get in touch.
We're here to explain what's happening with your account and answer any questions you may have.
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