Wage arrestment + Employer help

Gull

Hi Folks,

I live in Scotland, so Scottish law applies, seems to be different to Englishh, and does matter regards the advice given.

I have a 2 problems at the moment!!

1) I have a current wage arrestment running and I got another 1 served on me recently, this was sent to my employer who has now enforced this 1 too, so I was paying the full amount to the 1st arrestment, now I have this other arrestment my employer is taking even more from me, but the next bracket down, so infact I am paying just under double what IO am supposed to for the wages I am on.

They calculate the amount for the 1st arrestment, deduct that from my wages, then calculate the full amount again for the 2nd arrestment.

Is this correct? I thought they could only take, say for talkings sake the £145 the bracket I fall into, but no they are taking that, thenas my net wages is now less because of the 1st arrestment they are then taking £133 from me as well.

This makes my total arrestment earnings £278 a month, but according to the arrestment schedule I should only be paying £145, I thought they had to do a conjoined order and divide the maximum amount of £145 between the 2 creditors or divide it up according to the biggest debt


2) I got intouch with my Payroll dept and they said they have to enforce it and they can legally take upto 50% of my wages every month, I don't think this is correct, is it? according to what I read on the back of the arrestment, they can't enforce a 2nd arrestment if I have a current arrestment in place.

Please help, it's driving me nuts, I have read the Debtors (Scotland) act 1987, and I think I am correct but just need others input, as my brain is a bit fried after reading all that material.

Thanks in advance

(sorry for the long post)

fermi

This seems to suggest that you are right.

http://www.aib.gov.uk/guidance/publications/debtbankruptcy/DebtandConseq/Q/Page/9

Arrestment of earnings

If you are working, your employer may receive an arrestment schedule from your creditor instructing them to make regular deductions from your wages to repay the debt owed. Your creditor must have sent you a charge for payment and the Debt Advice and Information Package before they issue the arrestment schedule. The deductions are taken off your wages every pay day in the same way that tax is deducted and continue until all the debt is paid.

You could have more than one creditor arrest your wages at the same time. There is a maximum amount, based on your earnings level, which can be deducted on each pay day. This amount will be shared amongst your creditors if you have more than one arrestment.

Your employer sends the money to your creditor(s) and can charge you a small fee every time a deduction is made from your wages or salary. Your employer will give you a copy of the earnings arrestment schedule. They will also tell you when the first deduction will be made and how much it will be.

Gull

Thanks Fermi

Now I have the problem of telling my employer they are wrong, I have sent them a link to the Debtors (Scotland) Act 197.

Not sure where they get they can take up to 50% of my wages??

I work for a very very large company, you would think that they would know these things or have legal eagles that can check it out!!!

Not sure if I will get the £133 back or not, but I think I should as it is over the maximum level they are allowed to deduct from me

mustbedebtfree

Hi Gull

Hope you manage to get this sorted out!

I have a couple of questions (feel 100% free to tell me to Bog off if you'd rather not answer:o)

I know a few of us are going down the BR route in Scotland and i wondered what steps a creditor has gone to before the arrestment?

Also if this is a Council Tax issue or another creditor? as im not sure what powers other creditors have

If you are willing to answer thanks very much, if not no problem at all!!!

MBDF

Gull

Hi MBDF,

The original arrestment was for an outstanding OD, the 2nd 1 was for Council Tax.

I contacted the local court for advice and they were very helpful, according to the court, my employer IS in breach of the Debtors (Scotland) Act 1987, they should not have hounered the 2nd arrestment, but sent it back with information of the 1st arrestment to the 2nd creditor, the 2nd creditor then needs to apply for a conjoined order, and the maximum they are allowed to take gets divided up between the 2 creditors by the court (according to the schedule on the back of the arrestment)

When I spoke to the payroll assistant, I was told the this is company policy on arrestments and this is how they do it, and I was challenging the policy for the whole company, I said yes I was, I was then told she was only doing her job and I would need to speak to someone higher up, unfortunatly she is on holiday until next week and they have no other senior members of staff, they then told me I need to get the 2nd creditor to write to them (my employer) and tell them they had to stop, I did phome the 2nd creditor and they told me they wont, it's the companies responsiblity to tell them (2nd creditor).

I then phoned the court again, as I was in stalemate, as my employer said they could do nothing (as they were legally bound too) and the creditor said they could do nothing.

The court told me to tell them they were in breach of the Debtors (Scotland) Act 1987, and to stop paying this immediatly, and return the arrestment with details of the 1st arrestment, if they were not willing to do this, they need to refer to the Debtors (scotland) Act 1987 and consult a solicitor.

The very helpful lady at the court then said, to write to the court and ask for a court date, as the Arrestment is not complient or competent as it is in breach, the court would then give a ruling on the arrestment, which would make the 2nd arrestment either conjoined or incomptent.

Again sorry for the long post, but thought this maybe useful for others, just because your employers says they are doing it correctly, if you feel they are not, do your homework and challenge them.

I have to wait till next week for the head of the Payroll to get in contact with me, I am paid monthly so I have plenty of time to sort it out, they will not be deducting this again, as I will get it sorted before the end of August.

Hopefully this maybe of use to others.

mustbedebtfree

Hi Gull

Sorry folks to cast this up from the darkest depths of page 5 but i thought of another question

Were you sent a charge for payment and had it expired before the arrestment??

Thanks
MBDF

Gull

mustbedebtfree wrote: »

Hi Gull

Sorry folks to cast this up from the darkest depths of page 5 but i thought of another question

Were you sent a charge for payment and had it expired before the arrestment??

Thanks
MBDF

Yes I was, but I was under the impression they could not take anymore from me as I already had an arrestment running, This I have found out to be correct.

It should have been returned and they should have then applied for a conjoined arrestment, I know I am owe them the money, but they have taken to much from me and wonder if I am entitle to this back?

I was hoping they would BR me, but time shall tell what will happen, as hopefully the head of Payroll will call me next week.

and I can take it from there.

Thanks for the replies folks.

Miss_Poohs

Hi Gull - very interesting and timely question from you.

We are in Scotland too - my husband is currently in a DAS, and we're struggling a bit, ok well - alot.

We had a council approved debt councillor out during the week there, and wage arrestment was one of the topics he brought up. He described exactly as you have found out, should happen.

I'm just wondering if the guidelines in England are different, as perhaps being such a big company, your employer is working to English rules?

Fingers crossed you get it all sorted out.

Gull

Miss_Poohs wrote: »

Hi Gull - very interesting and timely question from you.

We are in Scotland too - my husband is currently in a DAS, and we're struggling a bit, ok well - alot.

We had a council approved debt councillor out during the week there, and wage arrestment was one of the topics he brought up. He described exactly as you have found out, should happen.

I'm just wondering if the guidelines in England are different, as perhaps being such a big company, your employer is working to English rules?

Fingers crossed you get it all sorted out.

I think this is the problem, they are applying English law!!

I was told they can arrest 50% of my wages by the payroll assiatant, I think they can do that in England, well thats what she told me.

Not the best way to get your debts paid, but I have adjusted to the original arrestment and now don't really miss the money as I never have it in the first place, if you know what I mean,

mustbedebtfree

Gull wrote: »

Yes I was, but I was under the impression they could not take anymore from me as I already had an arrestment running, This I have found out to be correct.

It should have been returned and they should have then applied for a conjoined arrestment, I know I am owe them the money, but they have taken to much from me and wonder if I am entitle to this back?

I was hoping they would BR me, but time shall tell what will happen, as hopefully the head of Payroll will call me next week.

and I can take it from there.

Thanks for the replies folks.

Did you know that you can petition for your own BR after recieving a charge for payment?

MBDF

Gull

mustbedebtfree wrote: »

Did you know that you can petition for your own BR after recieving a charge for payment?

MBDF

Yes I had heard that, I believe it costs £100 to do it.

May go down that route yet, not to sure, I would like to clear my debts, but I am struggling at the moment.

I have phoned numerous times to speak to the head of Payroll, she never takes my calls and will not return them, this is the 2nd day now she was supposed to contact me, I have phoned and emailed her, but as of yet I have still to speak to her. :mad: