| Author |
 Topic  |
|
|
Hutch
Starting Member
25 Posts |
 Posted - 11 September 2010 : 14:18:56
|
If I go BR and my employer offers me a 'Season Ticket Loan' whereby they provide the full amount of an annual season train ticket and then deduct 12 monthly repayments from my salary (interest free) - does this constitute a credit agreement? Even though it is not a formal signed arrangement? It is likely to be for around £1,000 and my employer offers these as a matter of course to all employees (in fact it would be considered strange if I did not have a STL in place).
Can anyone advise as I do not want to contravene the conditions of BR if this is classified as 'Credit'.
Thanks. |
|
|
Hutch
Starting Member
25 Posts |
Posted - 13 September 2010 : 10:14:19
|
Hi,
Just keeping this bumped up as I wonder if any of the experts can advise on this?
Thanks. |
 |
|
|
gettingoutofdebt
forum expert
2418 Posts |
Posted - 13 September 2010 : 11:55:15
|
| It is, in effect, an interest free loan so would be construed as credit. I would mention this to the OR during your interview to see what they say. |
|
|
|
Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 13 September 2010 : 12:53:32
|
You need to remember that this is one of the critial restrictions in Bankruptcy and is infact a criminal offence - borrowing more than £500 without advising them of your position.
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
08454 751 851
Real People ..... Real Debt Solutions |
|
|
|
xmas baby
Average Member
537 Posts |
Posted - 14 September 2010 : 14:02:08
|
Hi Hutch,
I also have a season ticket loan with my employers of around £4,000 per annum and I was worried they would regard this as a loan while I was bankrupt. However, I did inform the OR when we had the post bankruptcy talk and she was fine about it. It is taken directly from my pay, so whether that makes any difference, I have no idea. I personally encountered no problems with it though when discussed with the OR. At the end of the day, would they rather you spend more money each month getting a montly season ticket, in which case they would probably end up not having enough disposable income left to pay an IPA. It is in their interest really. I would definately have a word with your OR about this, but I can't really see any problem.
xmas baby |
|
|
|
Hutch
Starting Member
25 Posts |
Posted - 14 September 2010 : 17:22:34
|
Thanks XmasBaby that's good to know.
I will speak to the OR about it. If I paid monthly it would cost about £60 a month more than if I had an annual ticket so hopefully they will agree to it being acceptable as it comes directly out of my pay before I get it. |
|
|
|
xmas baby
Average Member
537 Posts |
Posted - 15 September 2010 : 13:53:45
|
Spot on Hutch. As I said, I was quite worried about this when I declared myself bankrupt as I thought it might not be allowed by the OR as it is, in all intends and purposes, a loan. However, they really didn't have a problem with it. As you say, if you had to pay for a monthly ticket it would work out far more expensive over the year, so this way, at least you have more disposable income for them to decide if you get a IPA.
Good luck
xmas baby |
|
|
| |
Topic |
|
Season ticket loan
