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Travel Card Loan


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I was wondering if anyone had any experince of Employers schemes regarding Travel Card/ Season ticket loans.

 

Very briefly the scheme applicable in this case is this.

An employees can apply for a travel card/ season ticket loan, the loan is offered on a interest free basis is is repaid from source by the employee on a monthly basis over a period of 12 months..

 

My questiosn are.

 

1. Is this legally classed as a advance of salary.

 

2. If it classed as a loan would it be covered by the likes of the consumer credit act etc.

 

3. if it isnt covered by any consumer law hwo could an employer enforce the rpeayment if it was to becoem an issue.

 

Apologies for being very bague about this, there is a very good and genuine reason as the matter involves very sensitive confidentiality issues.

I may well need some heavy duty expert opinion on this one as its bound to be complicated.

And the case does not apply to me, as i am not covered by the confidentiality claueses of the person concerned.

I love the smell of banks coughing up refunds early in the morning

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It's a long time since I had a season ticket loan, but I have a vague recollection that if a ticket was cashed in, it had a residual value. In my case, I think I would have been liable to pay the difference between the outstanding loan and the value of the ticket.

 

Of course, things may have moved on. Does anyone know please?

Illegitimi non carborundum

 

 

 

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In our contract if you have a season ticket and leave the company you are responsible for repaying the loan, I think they allow up to 3 months to pay back depending on how much is left.

 

If it is about a season ticket which has been exchanged for one of a lesser value then I cant help.

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Dont know if this helps in trying to work out this one, have to say i am wholly confused.

 

Just looked at the paperwork for this.

The form is titled Application for advance of salary for season ticket purchases for travel from home to work.

 

There are no terms and conditions either on the application form, however there is a second page entitled notes fro completion.

The only signature required is that "i give authority for the advance to be recovered over a period of: 11 or 12 months (the applicant ticks one of the two boxes.

I love the smell of banks coughing up refunds early in the morning

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