payroll purchase scheme- please help.

[ElMarinero]

Hi there,

Not sure if I'm posting in the right section but basically I was employed up until recently with a large Company.

They offered various payroll benefits to purchase things.

 

Last October I took on a hire purchase agreement for a computer and was paying through my wages every month for it.

I have made around 7 payments (totalling to about £300) but I have now ceased employment with this company.

I thought I would be able to continue paying the monthly amount through my own bank account for the computer but I have been told that is not allowed as it is only available for employees and the full amount becomes outstanding immediately and the hire purchase scheme terminates.

I don't have the money to pay the balance in full so I am prepared to send the goods back.

All packaging etc has been kept and the goods are in perfect condition.

However I spoke to somebody on the telephone from my payroll who told me they would be looking to get the balance reduced with my last pay.

My last pay is coming up and my employer's payroll said they intend to take ALL of this pay to reduce the balance on the computer!!! There is around £1000 outstanding for the goods but I'd only be paid around £300.00.

If they did this I could not pay my rent! I can't afford for them to do this. I need my pay.

They have already had this month's installment, why not stop the agreement and take the goods back?

Plus, I can't pay anything else on the computer so it will ultimately HAVE to go.

It seems like they won't take it back though and that I will have to pay the total balance which it looks like they are wanting immediately.

Can I stop them for utilising the whole of my pay as payment towards the computer? And can I return the goods? As I say, I will not be able to pay my rent if they take my last pay away.

I thought that hire purchase was exactly that and that if the hirer could no longer pay, the goods would be returned?

Surely they won't take all my pay off me and then demand the rest of the balance after that immediately? And even if they did take all my pay I still couldn't pay the remainder so I would lose my pay for nothing and ultimately the goods would go back still because theres no other way.

I don't have a copy of the terms and conditions of the scheme I'm afraid.

Somebody from payroll who deals with this is calling me tomorrow.

Does anyone know my basic rights here so that i can be prepared before they call?

 

Thanks

[flyingdr]

No Having the terms and conditions to hand makes it a little difficult to know what your rights are. Ask for a copy from the finance company.

 

There should be someone here that can help as to your normal rights.

[buzby]

You've discovered one of the major downsides of the 'computers for employees' scheme, but that said, your employer will not be able to recover the full cost in one fell swoop from your final cheque, which would completely disadvantage you.

 

Your agreement is with the Finance Company, so you need to be guided by their T&Cs and what you can do to terminate, and how. More importantly, you need to WRITE to your firm - advising that you are terminating the agreement and they should not dock your pay any 'final' amount as this will seriously disadvantage you.

 

They MAY still do this, but if they do - you have the paperwork to raise action for recovery the they ignore your request.