Car loan from employer - just been dismissed!

stqueen

You say that your contract states that upon termination, the amount becomes immediatley payable and may be deducted from any amount being paid from them.

The key word here is 'may' - and they don't appear to have done so, as you say they have already paid your final salary and notice period?

Was there anything more in the contract stipulating payback upon either voluntary or involuntary termination of contract?

paddyrg

As I see it, you still owe the company the money, and they have paid you up to date for your wages, so you need to work out a way to repay them. They are probably not looking forward to any kind of battle and are probably feeling jumpy around the whole dismissal area anyway (just because the law is very complex).

They don't want your old car, of course, and it may not depreciate linearly anyway, so if you make a reasonable offer to continue repaying them, I'll bet they jump at it.

Oldfatgrumpy

Similar thing happened to me when I left my job with a local authority. I still owed around 2/3 of the original loan but the contract meant that the preferential interest rate I was paying was recalculated at commercial rate for the whole capital loan sum/repayment period and added to the remaining capital I still owed, and demanded as a lump sum immediately. I couldn't afford it so worked out the maximum monthly figure I could afford to repay and offered them that. They took me to court and got a CCJ, my statement of circumstances meant that they ended up with precisely the monthly amount I had offered. I was particularly annoyed because they hadn't given me the bit of the contract stipulating the termination of employment repayment clause when I got the loan, instead they got me to come in and sign it a couple of months after I'd got the car (signature backdated). They told me it was a case of sign or have no car, so I signed!

megane87

stqueen wrote: »

You say that your contract states that upon termination, the amount becomes immediatley payable and may be deducted from any amount being paid from them.

The key word here is 'may' - and they don't appear to have done so, as you say they have already paid your final salary and notice period?

Was there anything more in the contract stipulating payback upon either voluntary or involuntary termination of contract?

Yes they have paid my final and notice period salary in full. There's nothing about that except to say if it is paid back earlier the interest will be lowered with regards to how early it is paid.

megane87

Oldfatgrumpy wrote: »

Similar thing happened to me when I left my job with a local authority. I still owed around 2/3 of the original loan but the contract meant that the preferential interest rate I was paying was recalculated at commercial rate for the whole capital loan sum/repayment period and added to the remaining capital I still owed, and demanded as a lump sum immediately. I couldn't afford it so worked out the maximum monthly figure I could afford to repay and offered them that. They took me to court and got a CCJ, my statement of circumstances meant that they ended up with precisely the monthly amount I had offered. I was particularly annoyed because they hadn't given me the bit of the contract stipulating the termination of employment repayment clause when I got the loan, instead they got me to come in and sign it a couple of months after I'd got the car (signature backdated). They told me it was a case of sign or have no car, so I signed!

Yes that's where I worked too. Surley I shouldn't be able to be given a CCJ if I am willing to make payments, I'm on JSA how can I be expected to do anything different than the best I can do, my only income was from them, so obviously, I now have none! It's so unfortunate. I haven't had the part regarding the termination of employment either, will this be on my side do you think. Am I right in understanding you ended up getting a CCJ?

Oldfatgrumpy

Yes, I offered to up my monthly payments to maximum I could afford but they got the CCJ anyway. My employer was North Herts District Council. Maybe your (ex)employer doesn't have the same interest rate clause in the car loan agreement though, the effect of which was to increase the lump sum they wanted when I left to a higher sum than the original loan; my run-in with NHDC was nearly 20 years ago.

megane87

No the interest is lower if I pay it earlier, to be honest it was an amazing rate it was around £300 on a 4 grand loan over 3 years. It's just so unfortunate that I'm going to lose my job AND get a CCJ in the process...

LovelyLeeds

megane87 wrote: »

Yes they have paid my final and notice period salary in full. There's nothing about that except to say if it is paid back earlier the interest will be lowered with regards to how early it is paid.

If they have paid your notice period in full, might that mean that the car will be incorportated into this amount of notice too? Just wondering what the date is they have paid you to, and whether that means you have full entitlement to the car until that notice period is up. Just gives you a bit of a breather if that is the case.

megane87

They gave me a months notice I recieved my months notice payment the week just gone so I am owed nothing from them.