Loan against £12000 pension payout in less than 3 months

Darius2

I am due a private pension lump sum payout on 13 September 2014, so about two and a half months from now.

I left my last job by constructive dismissal, and am not working at present (there is a Court hearing pending, already I have been made settlement offers by my former employer).

I have am nearly 60 years old and have not been able to find alternative employment. I have urgent debts to pay.

Surprisingly my bank is not interested in the pension documents - I have even offered to have my pension lump sum cheque sent straight to my bank.

How can I get a loan in these circumstances? I only need the loan for three months.

boo_star

Banks won't be interested in guaranteed payouts, after all they have no way of forcing you to repay the loan when you receive it.

Other than a secured loan (if you have security to borrow against) there probably isn't an option, and I'd avoid secured loans like the plague.

Darius2

I offered to have the cheque sent straight to the bank, and sign an irrevocable document to debit the due sum (loan plus interest) against the cheque when it arrives.

I cannot see how things could be much more watertight.

A borrower on a salary cannot be forced to repay an unsecured loan either, without recourse to legal action.

boo_star

Darius2 wrote: »

I offered to have the cheque sent straight to the bank, and sign an irrevocable document to debit the due sum (loan plus interest) against the cheque when it arrives.

I cannot see how things could be much more watertight.

A borrower on a salary cannot be forced to repay an unsecured loan either, without recourse to legal action.

It's a legal contract but it's basically worth the paper it's written on. People renege on contracts all the time and Company "A" (the people you're getting money from) can't be guaranteed you will pay the money to Company "B" (who you owe it to.)

In essence there isn't a direct creditor>debtor relationship, it would become a legal wrangle, they just want to lend you money, no strings.

Puddylove

Darius2 wrote: »

I am due a private pension lump sum payout on 13 September 2014, so about two and a half months from now.

I left my last job by constructive dismissal, and am not working at present (there is a Court hearing pending, already I have been made settlement offers by my former employer).

I have am nearly 60 years old and have not been able to find alternative employment. I have urgent debts to pay.

Surprisingly my bank is not interested in the pension documents - I have even offered to have my pension lump sum cheque sent straight to my bank.

How can I get a loan in these circumstances? I only need the loan for three months.

To be honest, I think you'll struggle to get a loan in your present circumstances.
To think laterally:
1. What are your urgent debts for? Is there any way you can negotiate a minimal monthly payment until Sept?
2. Do you have any other ways of increasing your income? Part time work, benefits (are you claiming everything you should?), assets large or small which you could sell if not needed?
3. Constructive dismissal - could there be monies from this?
4. Could you use a credit card to pay the debt until Sept? Overdraft?

Good luck anyway.