Work loan help....urgent

iammrt

Hi everyone

I am in a very difficult situation at work and its getting to the stage where is driving me to depression.

I was headhunted by the owner of a recruitment business to join as a manager to set up a new area for the business, I was perfectly happy at my old job but he offered a "golden handshake" and forwarded me commission to help me reorganize my debts and help with my deposit for a house, £15,000 to be exact. I pay this back via monthly payments of £350 however things arent going well, and its quickly turned from a great gesture into a axe above my head and I am concerned I am on the chopping block anyday now.

I am petrified they are going to sack me and try and get the money back, I cant afford to pay the money as all of it has gone into my house and debts.

I've looked through the documents and what i signed was a few small sentences on a A4 bit of paper, also I have a letter from the finance director to my solicitor confirmed it was accrued commission (proof of funds for mortgage)

I dont know where to turn, the pressure is unbearable! Im a member of UNITE, shall I call them for advice? Is there any legal advice I can attain?

Any help appreciated

19lottie82

First off try not to stress too much.

If you leave the company, you will have to pay this back, but you can only afford what you can afford to pay, even if it's just a token payment.

IF you do leave, you will need to converse with them to work out a payment plan. DO NOT agree to a monthly / weekly amount more than you can afford.

iammrt

Its hard not to, they are threatening to try and take my house off me...its driving me bonkers and making it impossible to actually work and earn any commission to pay it back

Surely they cant do that? I dont understand how it works with a upfront payment from work, can they enforce anything?

Happy to pay them back but if I lose this job I cant afford to pay

19lottie82

I'm a bit confused. What happened in between them lending you the money and them making unreasonable demands for it back and threatening to take your house off you?

That issue aside, I doubt they would be able to "take your house", but they could try to recoup the £ they leant you by taking you to court, and they won't get very far is you're making payments to repay the loan.

That's why I advised, IF the worst comes to the worst, just ignore the threats, and make / stick to a REALISTIC payment plan, and make sure all correspondence is done in writing and kept.

19lottie82

PS I'm not sure if this will affect your situation with your employer, but you are aware that by telling your mortgage lender that your deposit money was commission, rather than a loan, that you committed mortgage fraud, right?

iammrt

Basically they paid my projected commission up front, however the job is not what I expected and its been extremely hard to deliver the targets they require. They are trying to use it as motivation, which it isnt as it just mounds huge pressure on me and had the opposite effect...Now they are making cuts and getting threatening which is why I'm getting extremely stressed about it

Wish I hadnt had joined the business but I made the decision for my family, was just sold the dream and its turned into a knightmare

iammrt

The deposit was already saved, they money was used for other debt consolidation and to help do up the house as it was a mess...

I just fear they can turn a non secure debt into a secure debt

redcard

iammrt wrote: »

I just fear they can turn a non secure debt into a secure debt

Using magic?

Clive_Woody

They would need a court charging order to make the debt secured, it would take time money and effort from them to achieve this. It is very very unlikely that they could force you to sell your house even if they could get a charge placed on the house, they would only get the money if and when you sold the house.

As part of the loan is there a specified monthly repayment that is documented and signed by both parties? Is there an agreed rate of interest on the loan? How much have you paid back to date?

Don't stress about this, there are more important things in life.

pjread

hold fire here, so your solicitor has a signed statement from the employer's finance director stating this money was accrued commission (i.e. already earned payment?)

Di_B

Contact Unite as you are a member.

Ask them for legal support in this - they will probably go to an external solicitor and not know themselves, but they will help and offer support.

Where you stand depends on the wording on the original agreement.

If the statement didn't say it was secured on the house, then they can't change it?
They can demand repayment, worst case you would apply for bankruptcy - I think that might impact the house if in your name? Not sure.....

At the end of the day, whatever happens, it can't be any worse than you feel now in not knowing.

If they are applying pressure/force in the workplace then definitely tell unite! It's a form of harassment and they need to be careful.

time to cash in on your Union contributions! Good luck.