Interest free loan through work but want to leave, what would be the procedure?

mulletspitroast

I've been at my firm for over 4 years, haven't progressed as yet but it's a very stable job and if I had no ambition I could probably stay there forever! They have a scheme whereby one can get an interest free loan and it simply comes out of your wages, but I plan to be job-hunting within the next couple of months if not the new year.

The loan is for a new car, only about £3000, but should I get the job I really want and still owe some of the loan to my current firm, what would be the likely procedure for paying it back should I leave? Haven't read the terms of any potential loan through my firm as yet.

laurel7172

You need to check the terms.

But I would imagine they'd retain up to 100% of your last month's salary. And if that wasn't enough to cover it, write to you demanding a cheque for the balance.

If I were determined to get another job in the next few months, I'd probably just take out a regular loan now, rather than worry about having to find one at short notice later on.

[Deleted User]

Need to check the terms and any tax implications

jonesMUFCforever

I agree - in the terms and conditions of your employee loan will be a clause stating you will HAVE to repay loan if you leave or are dismissed.

PoorCharleyBear

my old employer used to do these low interest loans. The T&cs stated that you had to pay as you left employment and could not carry it over.
The month's notice was anticipated to be enough to make alternative arrangements.

barbarawright

laurel7172 wrote: »

You need to check the terms.

But I would imagine they'd retain up to 100% of your last month's salary. And if that wasn't enough to cover it, write to you demanding a cheque for the balance.

If I were determined to get another job in the next few months, I'd probably just take out a regular loan now, rather than worry about having to find one at short notice later on.

I left a job half way through a season ticket loan and this was exatly what happened - the remainder was deducted from my final pay check. You'd have to check what would happen if you left owing more than a month's salary.

opinions4u

mulletspitroast wrote: »

what would be the likely procedure for paying it back should I leave?.

Your question is a bit like coming on a forum and asking "my firm offer free health insurance, what does it cover?"

How the hell would anybody here know? They could guess, they could repeat experiences with other employers, but they don't know anything about your employer and staff benefits.

Haven't read the terms of any potential loan through my firm as yet

Oddly, neither have I. Don't you think it would help if you did?

jamiefly

Already answered but...

When I left my last job they took all my last pay cheque and I was sent a balance of loan remaining to be cleared together with the P45. Not more than a few days later a very strongly worded letter to clear it or the debt would be past to a debt collection company.

Ruthless though I expect they have to be as for some it'll be like trying to get blood out of a stone.

eschaton

opinions4u wrote: »

Your question is a bit like coming on a forum and asking "my firm offer free health insurance, what does it cover?"

How the hell would anybody here know? They could guess, they could repeat experiences with other employers, but they don't know anything about your employer and staff benefits.

Oddly, neither have I. Don't you think it would help if you did?

Perfect answer above.

4 years at the firm, you haven't read the t&c's of the loan but expect a bunch of strangers to have the answer?

You do need to wonder what motivates someone to ask a question on a public forum where they are the one able to find out the correct answer - and probably quite easily.