The chief of the Student Loans Company, Steve Lamey, has been sacked after a long investigation into his conduct and behaviour.
Lamey was suspended in July and it was announced this week that his contract had been terminated. He has held the post for just over a year, with a reported salary of over £200k for the position.
At the time, it was claimed that he had mistreated his staff.
In a statement, the company said: “The SLC expects to see the highest standards of management and leadership and these were not upheld by Mr Lamey in his time.”
The decision was made in conjunction with the Department of Education.
Lamey is the third chief executive who is departing the company after misconduct. In 2013, the chief executive left after it was revealed that he would be paid through a private company; and in 2010 another executive left after the company failed to make payments to thousands of students.
Recently, the Student Loans Company has been plagued with stories about inefficient bureaucracy and poor customer service, including graduates over paying their debts by a collective £50m, the company tripling the interest rate on one student’s loans and repeated complaints about intrusive questions and demands.
One student said “the problem is the SLC isn’t regulated like any other company providing personal loans. They are able to fundamentally change the rules: payback thresholds, interest rates, going abroad – whatever they fancy.”
Another said: “The government froze the threshold for repayment and hiked the interest rate retroactively, and, despite there being talk of a legal challenge, none has materialised. It appears that in this country, contract law means nothing if your contract is with a government-owned company.”
The sacking of Lamey comes with rumours of a shake-up within the company, which may include the headquarters being moved from its current headquarters in Glasgow.
(Image: Steve Lamey)