Please can anyone advise? Complicated!

OldSkoolPlaya

Hello All,


This isn't an easy post to write as I feel so naïve. I'm hoping someone reading this can just help point me in the right direction - it's a bit long winded but thank you in advance for your time & thoughts.


I was working for a limited company in the renewable industry as an employee. It was a great company & I really enjoyed it.
I would often purchase items required on my personal credit card for jobs as the directors weren't always available in the morning & I would present my receipts & be paid immeadiately for what I had purchased.
This went on for a couple of years, never a problem.
Towards the end of summer 2012 the industry started to go into decline due to changes in the government funding of feed in tariffs etc Again I was still purchasing equipment for jobs, submitting receipts. In a very short space of time as we were so busy I had racked up several thousand of pounds worth of purchases on the credit card. As I was trying to get paid the company went into administration leaving me with about £10k out of pocket altogether.
The directors did pay me some money after this for about 4/6 months then nothing. I'm still paying off this debt & about to go under myself because of it.
the card I used was a Barclaycard with an APR of 26.9%! As I had always been paid the interest rate was never a problem - now it is.
It's unlikely that I'm going to get any money now & I've just kept paying as I didn't know what else to do.
Can I do anything with the credit card company?
How would I go about it?
The goods I paid for were never for my personal use & are stuck on people's roofs.
I really don't know what to do & would be more than grateful for any advice as I am really in the brown stuff.
I don't want to loose my house or kill my credit rating.
I am working and want to pay my debts but I am at a loss.
If anything, I hope my story will stop others from being as stupid as I have been.


Thanks once again.

OhReally_2

OldSkoolPlaya wrote: »

Hello All,


This isn't an easy post to write as I feel so naïve. I'm hoping someone reading this can just help point me in the right direction - it's a bit long winded but thank you in advance for your time & thoughts.


I was working for a limited company in the renewable industry as an employee. It was a great company & I really enjoyed it.
I would often purchase items required on my personal credit card for jobs as the directors weren't always available in the morning & I would present my receipts & be paid immeadiately for what I had purchased.
This went on for a couple of years, never a problem.
Towards the end of summer 2012 the industry started to go into decline due to changes in the government funding of feed in tariffs etc Again I was still purchasing equipment for jobs, submitting receipts. In a very short space of time as we were so busy I had racked up several thousand of pounds worth of purchases on the credit card. As I was trying to get paid the company went into administration leaving me with about £10k out of pocket altogether.
The directors did pay me some money after this for about 4/6 months then nothing. I'm still paying off this debt & about to go under myself because of it.
the card I used was a Barclaycard with an APR of 26.9%! As I had always been paid the interest rate was never a problem - now it is.
It's unlikely that I'm going to get any money now & I've just kept paying as I didn't know what else to do.
Can I do anything with the credit card company?
How would I go about it?
The goods I paid for were never for my personal use & are stuck on people's roofs.
I really don't know what to do & would be more than grateful for any advice as I am really in the brown stuff.
I don't want to loose my house or kill my credit rating.
I am working and want to pay my debts but I am at a loss.
If anything, I hope my story will stop others from being as stupid as I have been.


Thanks once again.

You should lodge a claim with the administrators of the former employer; at best you will go on the list of unsecured creditors.

Do you have anything in writing from the then employer approving your intent to incur expenses on their behalf? If not, you may not even get on the list of unsecured creditors.

As far as Barclaycard is concerned, it's your debt and you alone are fully responsible for repaying it in line with the terms agreed.

Quite simple in the end, wasn't it? :cool:

OldSkoolPlaya

Thank you for your reply.
I have a letter saying that I will get paid.
There were several ltd companies under a single group and whilst my one was put into administration the directors are still trading under one of the other limited companies.
Is it worth talking to barclaycard and explaining to see if I can lower the the payments??

OhReally_2

OldSkoolPlaya wrote: »

...Is it worth talking to barclaycard and explaining to see if I can lower the the payments??

As it appears is the current favourite saying in these parts, especially amongst Newbies, nothing ventured, nothing gained

Of course, if you don't keep to the agreement (even if they agree) it will probably trash your credit status. But borrowing more money in your current position should be the last thing on your mind anyway.

But you might want to consider a 0% BT offer or two to transfer the current debt onto. But you'll have next to no chance if you fail to keep to existing credit agreements.

MPH80

OldSkoolPlaya wrote: »

Thank you for your reply.
I have a letter saying that I will get paid.
There were several ltd companies under a single group and whilst my one was put into administration the directors are still trading under one of the other limited companies.
Is it worth talking to barclaycard and explaining to see if I can lower the the payments??

Who is the letter from? Unless it's from the administrators of the company - it's not worth the paper it's written on I'm afraid.

Once a company goes under - the administrators are in control. They carefully evaluate all creditors - including unpaid employees or contractors - and apply any money remaining in the company and assets to them.

You can certainly have a chat with Barclaycard about it - otherwise a personal loan might do the trick.

In terms of the directors - the fact they are trading elsewhere is neither here nor there - their liability extended only as far as that limited company. They might, as a gesture of good will, choose to pay you from the other company - but I imagine the financial controller might have something to say about that.

M.

Uxb

Same sort of thing happened to employees of Lehman's Brothers the USA bank when the bank imploded whenever it was (?2009?)
They had been paying of their hotel and other expenses in meeting clients out of their credit cards and then getting it back as expenses every now and then when they sat down and totaled it all up.
After it was closed they were in the same position as the OP
They also had to put a claim into the administrators of the bank.
No idea if they got any or even part back.

In this case here, the administrators will need to look carefully for any parent company guarantees that might exist. Companies don't like giving them as it exposes the parent Co to a default in a subsidiary while (in big business anyway) clients often refuse to do business without them