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Redundancy & paying back season ticket loan
Lilly80
Posts: 2 Newbie
My boyfried has been made redundant and had a season ticket loan with the company. He only has 3 weeks left to run on his ticket, so the train company will not reimburse the amount remaining. But the company he is being made redundant from is still demanding full payment. So he basically has to pay £300 for a worthless ticket he won't use. If he was leaving the company of his own accord then I could understand it, but they are making him redundant and have set the leaving date. Does he have any grounds to not pay this money back?
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He should phone the train service provider and see if he can get a refund on the ticket. I had a month ticket and they have refunded the unused portion to me.0
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Unfortunately, they won't refund the ticket. It is a yearly season ticket and they offer no refunds after 10.5 months of use.0
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Has he tried asking the train company to freeze the ticket? I was able to do this and I think it cost £10 in admin fees. I know it's not as good as getting your money back but at least he would have a few weeks pre paid travel for when he gets a new job.0
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It was a loan, he needs to repay the loan.
The actual ticket is not relevent he is not paying anything back for that he is paying back the loan.
He used the loan to purchase a ticket and has had full use of that ticket under te T&C's.0 -
I know it doesn't help yourself, although I'd like the thank the OP for highlighting this, as I am considering a season ticket loan when I am at risk of redundancy over the coming year and I wouldn't have thought of this issue.
Could he ask his work to take the money in installments? or are you quibbling paying the money back at all? also, if you ring the HQ for the train company they are normally more helpful than you'd imagine, First Great Western have given me ticket portion refunds in the past.
HIf you aim for the moon if you miss at least you will land among the stars!0 -
Three weeks is very little really. He will have had full use of the ticket for 11.25 months. Buying monthly tickets and a final weekly one would have cost more than that, so he is still "in pocket" as it were.0
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I can see both sides here.
On the one hand, he owes the money back to his employer. He has actually had the value of that money, as an annual season ticket costs roughly forty weeks of rail travel. As he's had that use, then he's not out of pocket as such.
On the other hand, I can see your argument too - that it's the company's action that has given rise to immediate payment of the amount outstanding.
However ...... if he were to remain employed, then he would have paid the amount back anyway, via the normal salary deduction.
And - if the season ticket loan had been repaid in 10 monthly instalments, rather than 12, he would also have paid that money back already. Paying the loan back in 10 instalments means that the repayment period follows the way in which the rail company charge i.e. no refund after 40(ish) weeks as you've had full value by then.
On balance, I don't see an overwhelming argument for insisting that the employer waive the clawback - but he can only ask
Warning ..... I'm a peri-menopausal axe-wielding maniac0 -
you may find he'll need it to go to agencies/redundancy outplacement support companies anyway!0
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It will depend on the terms of the loan what they can insist on
IF he is getting PILON for a period that takes him past the ticket end date then there is no problem pay it out of the PILON.
If the loan terms allow for immediate repayment then I don't see how you cannot pay it back.0
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