loan from employer

tazmin_2

Hi,
please be patient, i'm new to this and badly need advice!!
i had a car loan with reduced interest rate from myLocal Authority employer ( POWERFUL LOCAL GOVERNMENT!!!!)(4 year loan, 3 years left) i'm leaving to start a better paid job and they are demanding the full amount (£6,000) to be repaid in full. I can't afford this, and can't get a loan 'cos of previous probs, i've offered to pay £200 per month by direct debit (i have been paying £180) but they're threatening to take me to court. i'm worried about this and also whether they'll tell my new employer i've left owing money. Can anyone please advise me what would happen if a)they take me to court and b) can they tell my new employer? THANKS 4 ANY HELP!!!

Tori_Bellatrix

Hi Tazmin

I can't help much but to say that I also work for Local Authority who run an Assisted Car Purchase scheme and their rules are exactly the same if you leave, you pay up ... it's specified in the T&C's.

However, if you are leaving to work for another Local Authority, you may be able to transfer the debt across to them.

tazmin_2

i'm not going to another local authority!!! really worried, i've accepted new job and can't pay off loan!

daveyjp

I also have a company car loan - same rules - leave and I have to pay up. The loan is provided as I am deemed to need a car for my job. If I leave I don't need it for the job so they want the cash back?

Its one reason why my car is always worth far more than I owe - I never borrow more than 30% of it's value. If I ever have to pay it back I can simply sell the car to cover the debt.

If you do go to Court you will get a judgement to pay the debt, at this point you can come to an arrangement to pay it off.

Fred333

Man that is a tough spot to be in.

tazmin_2

are they likely to take me to court if i'm offering to pay monthly - wouldn't the court just accept i'm paying it already? you can't get blood from a stone can you?
i won't get enough to pay off loan even if i sell the car!

iolanthe07

I have a free car loan from my employer and the same T & C's apply. It's fairly standard - the loan is to help me do my job more efficiently, so no job= no need for the car. You may have to sell the car and top up the amount owing from a small loan or credit card. Not ideal, but your options are limited if you are determined to have the new job.

Tori_Bellatrix

tazmin wrote: »

are they likely to take me to court if i'm offering to pay monthly - wouldn't the court just accept i'm paying it already? you can't get blood from a stone can you?
i won't get enough to pay off loan even if i sell the car!

Yes, they will take you to court to claim the outstanding amount .. As far as the LA are concerned, the reduced interest rate car loan is a benefit and if you no longer work for them, you aren't entitled to the benefit and they want it paid up (It's harsh I know) .. Check the T&C's - it should stipulate what happens in the event that the employee leaves their job.

As others have said, you may have to sell the car or request to pay it monthly via the courts ... but this may leave you with a CCJ.