Loan off employer problem.

tawecdl

Quick question as to where I stand with this one.

So I was employed back in December and then became homeless. I have stayed at various places but I had a fair bit of time off work as I had nowhere to sleep and nowhere to wash etc. My boss then said he will put money into my account to allow me to get a deposit on a flat. I couldn't get a deposit as I have bad credit so I paid a friend money to allow me to stay there. I signed an agreement to pay back a certain amount each month. I was expecting a months pay tomorrow but I have now been told they have taken all my wages and my accumulated holiday entitlement to the sum that they lent me and said I now will not be paid a penny. I cannot get any of that money back and not sure what to do. Their reason for this is because I didn't use it for a proper deposit on an estate agent flat but I used it to pay a friend.

Firefox1975

You couldn't get a deposit because you had bad credit? eh?

you HAD a deposit! you decided to give it to your friend instead.

Not sure what you expect to happen here, they lent you money for a reason and you spent it on something else? How did they know you gave it to your friend and didn't put a deposit on a property?!?!

tawecdl

I told them the truth. I went through a credit check on an application for a property but failed because of my credit. so even though I had the funds, I failed the check. my only alternative was the option of paying my friend of a friend to allow me to stay there. they only told me today that tomorrow my wages are £0 and they have taken all my holidays off me.

I don't "expect" anything to happen, hence the reason for me asking on here.

marybelle01

Firefox1975 wrote: »

You couldn't get a deposit because you had bad credit? eh?

you HAD a deposit! you decided to give it to your friend instead.

Not sure what you expect to happen here, they lent you money for a reason and you spent it on something else? How did they know you gave it to your friend and didn't put a deposit on a property?!?!

+1

And are you sure that you have a job now?

Your boss didn't have to help you out one bit, and out of the kindness of his heart he did - and most would have just sacked you for missing work, not loaned you the money for a deposit.

So you then took that money and gave it to a friend to stay at his place. I think I can perceive why you might be homeless - money you pay to people in order to have a roof over your head is called RENT, and you pay that out of your wages. You don't use the deposit loan for "rent" and then keep your wages for yourself.

No wonder your boss is annoyed - you brought this on yourself.

tawecdl

what other option did I have?

Jox

Go and talk to your employer and explain the situation.
You should have told your employer that you weren't able to get a flat because of the bad credit and then decisions could have been made based on that fact and this situation wouldn't have been such a shock. Communication is important for all parties involved.

maginot

As mentioned by MaryBelle,I don't understand why you used the deposit for a flat to pay rent? You would have had to pay the rent anyway and I presume you haven't paid a deposit for staying at a friends. So you should still have the deposit in the bank!

Why don't you just return the deposit to your employer and still get you wages and holiday entitlement (although not sure they can offset your holidays if less than the legal minimum entitlement).

Your employer seems very supportive and you took advantage, not sure many would give an advancement on wages to help support you get some where.

marybelle01

tawecdl wrote: »

what other option did I have?

I am pretty sure that I explained the other option. You were getting paid wages. Rent is paid from your wages. That was the other option. Use your wages to pay for your living expenses and return the loan if you can't use it for the purpose it was given for.

marybelle01

Oops OP. You seem to be straying from the truth somewhat. On 22 February you had recently moved into a flat with a six months tenancy https://forums.moneysavingexpert.com/discussion/3809153=

On 12th February you were just about to move into it https://forums.moneysavingexpert.com/discussion/3790621=

So "homeless"??? Your version here doesn't exactly sit straight with having a six month tenancy on a flat in February, or having been homeless at all, or paying a friend of a friend to stay at their place...

Want to try for a more credible story?

tawecdl

my employment moved office so I had to relocate close to work. I moved into a work colleagues house but then he left the company and I had to move out. homeless.

I used the money to pay 6 months rent to this friend, my wages were used for my cost of living.

I was expecting my wages , minus the agreed repayment. I am only asking as I am now broke... unable to travel, eat etc...

getmore4less

The money was a deposit not rent,

The rent should have come out of income.