Any advice please?
I worked for Barclays and a week ago I started a new position at another bank. I had a loan from Barclays which has around £4200 remaining and now they have told me that I have to pay back all of the loan within 21 days as I am no longer staff. I cannot get another loan to pay this one off as I am only 21 and do not yet have a good credit score although I have never missed a payment on this loan, or any phone contracts I've had. It is the only major credit I have ever had. I did not know that it would have to be paid back if I left their employment, I thought that I would just lose my discounted rate. Please can you advise if they can do this as they say if I do not pay it within the 2 weeks that are remaining on the 21 days they will put the debt in the hands of a debt collection agency.
Whether you have to pay the
Whether you have to pay the loan back within the date specified by Barclays will depend on the exact terms of the loan agreement. Have you got a copy of it and have you read it? What does it say specifically about what would happen if you left your employment at Barclays?
You say that you knew that the loan would have to be repaid if you left the employment but that you thought you would just lose your preferential rate. Was this explained to you when you took out the loan?
I am a Legal Advisor employed by Sarginsons Law and specialise in Civil Litigation matters. I deal with disputes between individuals and businesses including Landlord and Tenant issues, debt recovery and property disputes.
Telephone 02476 553181
As far as I was aware the
As far as I was aware the rate just changed to a customer rate rather than the preferential staff rate. I haven't been able to find the original terms and conditions as I've moved twice in the past 18 months, but I've ordered a copy.
I spoke to another member of staff that was in the same job role as myself and he was unaware of the 21 day period either, he thought exactly the same as I did with regards to the rate changing. I know I definitely wasn't told on the phonecall where I took out the loan that it would need to be within 21 days.
If there is no requirement in
If there is no requirement in your loan agreement that the loan must be repaid within 21 days of leaving your employment with Barclays then I do not see how Barclays could enforce what they are now stipulating.
If there is clause in your contract about repaying the loan within 21 days I would expect this to be in large letters or bold type as it is obviously an important part of the contract.
When you you receive the loan agreement you should consult it in great detail. You should also ask Barclays to confirm where abouts in the agreement the 21 days clause features.
I am a Legal Advisor employed by Sarginsons Law and specialise in Civil Litigation matters. I deal with disputes between individuals and businesses including Landlord and Tenant issues, debt recovery and property disputes.
Telephone 02476 553181
I agree with Gerard's
I agree with Gerard's response.
You will need to read the loan agreement to establish the exact terms of repayment.
So far as debt collectors are concerned you should be aware that in your current circumstances they have no legal status to enforce the debt.
There is no court judgement.
If they approach you tell them to go away. If they do not. Call the police.
I've ordered the copy
I've ordered the copy agreement so I should be able to see shortly!
I just don't understand how they can send it to a debt recovery agency when I've not missed a single payment at all, it seems really unfair.
It will all depend on what
It will all depend on what clauses are in the agreement but I agree that it does seem slightly unfair.
However as Ian has said a debt collection agency really cannot do anything other than threaten to take legal proceedings against you.
Please let us know what the agreement says as it would be interesting to know.
I am a Legal Advisor employed by Sarginsons Law and specialise in Civil Litigation matters. I deal with disputes between individuals and businesses including Landlord and Tenant issues, debt recovery and property disputes.
Telephone 02476 553181
I will do as soon as it comes
I will do as soon as it comes through, hopefully within the remaining 12 days!
Thanks for your help =]