Employer loan

Mordlaw

I have an outstanding loan from my former employer.

The loan was originally established in November 2013. At the time I signed an agreement for the first loan and committed to repaying the loan via salary deduction and at a rate of 4%. If I left the company that rate would rise to10%.

In March 2014, the company offered me a further advance to help pay for an expenseive divorce. At the time I asked if I could have a revised agreement and was told there would be no need and the second loan would be under the same terms.

I have now left that employer (not in the best circumstances). But I have managed to secure a personal loan elsewhere for the balance of the firstlaon at abetted rate than 10%.

I have offered to pay down the first loan in its entirety and to agree a structured repayment plan for the second loan,but not at the 10% rate because feel this is unreasonable and not something they can enforce.

To e clear, Ian morte a happy to payback all monies borrowed, and today some interest on that amount,but the10% is too high and the clauses under the original loan mean I would also be liable for any legal charges they incur in recovering this loan.

They are refusing to let me pay off the first loan and threatening me with solicitors if I do not write back confirming that I accept the 10% on the entire balance. I've explained that my issue is affordability, while I'm working again, but I do not earn what I did previously but they are still demanding £600 a month at 10% on the second loan, even though I have explained in order to pay down the first loan and avoid the 10% interest I have had to secure a personal loan elsewhere which is costing me £475 a month.

I keep emphasising again and again I want to pay, I want to clear this debt and return all money,but they will not talk tome unless iwrite to the confirming I accept the 10% on the whole balance.

They are also threatening my current employment, stalking me on linked in and sending there wing emails!

I don't know what to do and feel likeishould take the 10% rate and just be done with it, but it feels like I'm being bullied into doing so and its causing me a lot of stress and anxiety

Any help or advise would. Be really appreciated. I want to pay this, I never suggested I wouldn't but I just don't know what they will do and this debt couple spiral snd spiral out of control

[Deleted User]

It seems like they would like you to stick to the terms of the agreement. I don't think you will have much of a case for creating new terms now.

Apples2

You accepted the same terms for both the first and second loans.
you can't now retrospectively demand a whole new agreement.

what have they said about early repayment (are there any terms which cover this area).
Can't your new loan cover the whole lot?

ConsumerWizkid

You didn't think it was unreasonable when you signed the agreement.

"At the time I signed an agreement for the first loan and committed to repaying the loan via salary deduction and at a rate of 4%. If I left the company that rate would rise to 10%."

Pay it or end up paying way more in legal fees.

RuthnJasper

Mordlaw wrote: »

I have an outstanding loan from my former employer.

They are also threatening my current employment, stalking me on linked in and sending there wing emails!

They are NOT stalking you - you borrowed their money and they are wanting it back! 10% and their activities you describe seem quite fair and reasonable to me.

I am sorry for your predicament, but you really do need to settle this with them without trying to negotiate new terms. If you need some financial advice, especially concerning loans and the debt issues you mention, please contact Stepchange http://www.stepchange.org/. Their advice is free, friendly and practical. I can't recommend them enough.

Best wishes.

andyfromotley

Well they may be stalking you. If they are contacting you via linked in etc that seems a little strange. Are there rules to prevent them contacting your new employer? Seek advice on this.

As to your contractual agreement with them you seem to have decided that this is what is going to happen, taken out the loan etc and then been a little surprised when they said 'no thanks we like our original deal, the one you signed'. It was a little presumptuous of you. Just try try try to reach an agreement with them but i would recognise the fact they don't have to do so.. (at this stage anyway). But when alls said and done this is an outstanding debt, if you can't pay it the remedies on here for other debt will apply no doubt. They will end up taking some arrangement to pay and your credit history may be shot.

Good luck, i hope you can reach a settlement that works for both of you.

27col

Deleted_User wrote: »

It seems like they would like you to stick to the terms of the agreement. I don't think you will have much of a case for creating new terms now.

"Stick to the terms of the agreement." Are you mad!.
Whatever happened to shouldering the commitments made at the beginning. The OP was glad enough to accept then, and now thinks they can quote their own interest rate.

dealer_wins

This is either a wind up, or her employer is well shot of her lol

David147

The Employee acknowledges and agrees that an interest rate of ____% per year will accrue on any outstanding amount and that the repayment shall first be applied to the interest and then the principal amount.

The Employee hereby gives permission to the Employer to deduct $_________________ bi-weekly from the Employee’s pay check starting ____/____/______ until the full amount of the above stated loan is paid in full.

The Employee also agrees that any outstanding amount will be deducted from the Employee’s final pay check upon resignation or termination of employment from the Employer.