Employer Loans

gizmo111

Does this incorrect wording apply to all loans?
To cut a long story short a friend borrowed from her ex-employer £8500 for a car over 4 years and has never had a statement from them except for the first year - it's a large local authority, would they be bound by the same clauses as the banks?

jonesMUFCforever

Is the loan now repaid?

The problem with loan documentation seems to be that they did not advise customers that they could overpay during the loan period - your friend needs to dig out the loan documentation and see what s on there.

gizmo111

No its not repaid - she lost her job after the 3rd year and has been repaying £10 a month along with her other debts. She has no documents - I guess she needs to request all docs?

chanz4

Would depend on the type of the loan, it may not be a normal type of loan

TrickyDicky101

Was it an interest-free loan? Irrespective of what is on/not on the documentation, your friend will still owe the original money back that she borrowed.

gizmo111

TrickyDicky101 wrote: »

Was it an interest-free loan? Irrespective of what is on/not on the documentation, your friend will still owe the original money back that she borrowed.

No not interest free - interest was 4 % or something like that.
She borrowed £8500 to be paid back over 48 months at £213 (she can't remember exact figure) so interest was about £1726.
She paid 34 or 35 months then lost her job, and didn't pay anything for ages, she now pays £10 per month and thinks she has paid about 13 months at this rate so still owes about £2.5K.

I've basically told her to just pay it as she may want to work for them again and this is bound to flag up in pre employment checks if she does, but she wants the information so I'm checking for her.

tomtontom

Am employer loan from an LA for £8000 would not be subject to the requirements of the CCA, nor would it come under the remit of the FCA.