Car loan from employer - just been dismissed!

megane87

Hi everyone, can you help me? I got a car loan from my company as it is integral in my sector to drive, I have only paid off around £1,000 of a £4,000 loan and I have just been dismissed. What can they do can they take the car from me even if I say I will still make payments? I need a car to be able to gain employment so do I have rights in regards to that as they will be stopping me from getting another job if they were to reposess the car.

Please help

KateBob

If the loan wasn't secured on the car then there's no way the can take it, and it's highly unlikely that it is.
Probably best to dicuss it with them, they may allow you to continue with the payments or ask for the balance straight out.
Remember that you need a good reference from them.

megane87

The loan was for the car, it is a car loan scheme and they paid the money directly to the seller. I won't get a good reference from them an agency recently asked for one and in the words of the lady who worked there she "shredded it and put it in the bin as it was useless"...

anamenottaken

megane87 wrote: »

The loan was for the car, it is a car loan scheme ...

You would have been provided with the terms of the loan - and they would include what would happen in the event of termination of employment. I suggest you look out your copy.

megane87

It says the amount would become immediatley repayable, but I can't pay it obviously as I now have no job, I can afford to make monthly payments that's about it.

SarEl

Then you will have to try negotiating. The terms are the terms I'm afraid. If the money is immediately due then unless they agree otherwise, their only opyion is to take court action. That would not be good for you - it will increase the costs you owe, it will get you a judgement on record, and the court may order installments - but they could equally order possession of assets if you have them (like the car plus other things). How reaosnable they may feel about negotiating may depend on a number of things, not least of which is why they dismissed you.

megane87

Can they take the car though as I need it for my job or potential job I will get soon hopefully, I thought they weren't allowed to take posessions you need for employment?

Annisele

The OP has another post on the same issue; the dismissal was due to a "conflict of interest".

OP - are you possibly getting mixed up with the rules about what can be taken when people are bankrupt? Depending on the terms of the car scheme, you might find that your employer still owns the car - in which case they can most certainly take it back. I can't see that you have any choice but to try to negotiate on the car issue.