Sacked - Employee Loan to Repay.... BUT...

[Amethyst]

Re: Sacked - Employee Loan to Repay.... BUT...

Thanks for explaining
The law is bizarre

Completely agree, this is an overview from 2012 http://www.macfarlanes.com/media/173...c-march-12.pdf
and http://www.personneltoday.com/hr/how...-to-employees/ 2014

I can't find a specific bit in the FSMA(Regulated Activities) Order

[qazmko]

Re: Sacked - Employee Loan to Repay.... BUT...

As it's more than 1% above base rate then the consumer credit act applies. Send a section 77 request

M1

Its great to know the ex director is on your side. The reason I was cautious is that I have seen people lie through their teeth to save their own skins on many occasions.

M1 I find it intriguing that the Consumer credit Act comes into play, does that mean that the firm need a consumer credit licence?
If they do what are the consequences of not having one and who would be liable?

On top of what @Amethyst and @mystery1 have said @NWHC - If the employer can not produce a copy of the consumer credit agreement the loan was made under, then the company can kiss the money goodbye! Plus the employer would be in breach of the cosunsumer credit act 1974 as they are responisable for ensuring they comply with the law when issuing such a loan, not the employee!

Re all of the above - how do things stand without the written agreement at all...? (let alone in accordance with credit acts etc)

If they are pressuring me to provide something they, and I, know does not exist - do I then push back at them asking the same sort of question.. ? (i.e. asking for something that I know does not exist)

[qazmko]

Re: Sacked - Employee Loan to Repay.... BUT...

Gald to see the Ex director is on your side, maybe we could help him/her with his own battle against this Muppet new director whom seems to be nothing more than a spoilt bully with a few quid in his bank account to throw around!

Yes he cannot stand the other crowd, not surprising. I may start another thread as it gets a bit silly what they are trying to blame/claim him etc

[Openlaw15]

Re: Sacked - Employee Loan to Repay.... BUT...

More questions since I got the boot..

I got a loan from work late last year.

Me and director (at the time*) had agreed terms to repay over 30 months.

*director has since resigned due to a fall out with shareholder! (the shareholder who then came and sacked me the next morning!

In my letter of termination, they say that I am to "repay the company the sum of Łxx that was unlawfully loaned to you [me] on xxth xxber 2015 within 14 days. Failure to repay this sum to the company within 14 days will result in legal action being taken against you [me]"

Now, I have a few points to state/ask:

- I don't have the money to repay within 14 days - surely I can stay in line with the repayments that were agreed when issuing..? Can they demand this? What 'legal' action can they put on me? I'm not trying to get out of paying, just don't agree with them putting the 14 days' limit on me..
- I don't have an agreement in writing. I think this was maybe lax/poor admin on director's behalf, and somewhat mine - it was all to 'kick in' for this month's pay (end of Jan)

Speaking to my accountant - I'm about to go self-employed - he said that my reply to the letter should be along the lines of "you state the loan issued to me is 'unlawful' so therefore I wish nothing to do with it" - I suppose the onus then lies back with the director at the time.. Though I think that is a very bold response on my behalf

Help!

My question, on the contract of the loan, was there a repayable date?

[qazmko]

Re: Sacked - Employee Loan to Repay.... BUT...

My question, on the contract of the loan, was there a repayable date?

Don't know if you have read the full thread - there is no written agreement.

That said; it was agreed to be repaid over 30 months with the first payment end of Jan 2016 (i.e. now!).

So there is in that sense, though not an agreed actual date without looking to whatever the last day of the 30 months is..

[charitynjw]

Re: Sacked - Employee Loan to Repay.... BUT...

"A verbal contract isn't worth the paper it's written on."

(Misattributed to Sam Goldwyn)

:tinysmile_twink_t2:

[mariefab]

Re: Sacked - Employee Loan to Repay.... BUT...

Qasmko
*In case you still have any interest in the possibility of an unfair dismissal claim.*

If the Company that you were sacked from was associated with the Company that you worked at before this, and the two periods of employment combined add up to 2 years, you would have a potential unfair dismissal claim.

http://www.legislation.gov.uk/ukpga/1996/18/section/231

[mariefab]

Re: Sacked - Employee Loan to Repay.... BUT...

^^^while I was (slowly) typing, you answered on one of your other threads.
Shame there's no connection.

[qazmko]

Re: Sacked - Employee Loan to Repay.... BUT...

Still a bit 50/50 on way forward here..

My '7 days' that they have threatened me with is up - though I think this is ridiculous anyway.

However; the day I'm meant to be making the first payment is upon me (tomorrow, though a Sunday so lets say Monday).

Should I respond as per previous - 'I agreed xxxx to xxx...' (so telling them to bugger of with their 7/14 days) and I'll be sticking with the terms I agreed..?

OR

With the new ideas of credits acts etc do I hold off?

I'm not looking to get out of paying. Morals apply and I would like to pay back as agreed, regardless of their lack of any

[Kati]

Re: Sacked - Employee Loan to Repay.... BUT...

you could always hold off but keep the payments you would have made saved in the meantime (give them a chance to answer) :noidea:

[mariefab]

Re: Sacked - Employee Loan to Repay.... BUT...

How had you originally agreed to repay it?
Was it to be deducted from your wages/ paid by bank transfer/cheque/whatever?

[mystery1]

Re: Sacked - Employee Loan to Repay.... BUT...

If you do a S77 request they have to produce an answer or the debt is unenforceable. If they produce something then they will acknowledge a loan exists and cannot demand full repayment. They clearly cannot produce that which does not exist. They may, however, realise they are in a bit of bother and back off.

M1

[qazmko]

Re: Sacked - Employee Loan to Repay.... BUT...

It was mentioned earlier that they wouldn't necessarily need to have a credit license for the odd employee loan..

So along those lines I'm again thinking is it a bit of a dead end request?

(sorry to keep humming/hawing over this but I'm a bit shocked by it, and wonder what the buggers think they do in a 'legal' sense to me.. - though I do appreciate they are largely threatening; I'm still most likely over-thinking this..)

[Amethyst]

Re: Sacked - Employee Loan to Repay.... BUT...

I agree with you, but despite that it might give them a reality check so it is worth sending the request while sticking to your guns and make the payments as originally agreed.

I'd also send the ''I will continue to pay the loan back at xxxx on xxxx month as originally agreed' note

KEEP COPIES OF EVERYTHING - and make sure you pay by a method you can evidence fully so there's no doubts.

[mystery1]

Re: Sacked - Employee Loan to Repay.... BUT...

http://www.personneltoday.com/hr/how...-to-employees/

M1