Welcome to the forum betterlife.

Could I just check, did you take this computer after your trust deed was signed?

I'd be hopeful that an installment plan will be acceptable to your ex-employer... it certainly was while you were working for them.

Don't worry too much about this right now as a trust deed doesn't actually mean that you cannot apply for credit (though doing so will often turn out to be a bad idea).

Hi betterlife

There is niothing to stop you obtaining credit while in a trust deed, so legally you are fine and have not broken the terms of the Trust Deed.

My advice would be to speak with the ex employer and make an offer of repayment as you state. Please ensure that the offer is also made in writing. It may be interesting to check the terms of the agreement for the computer to see if there is any hand back section.

Mark

Many thanks for your quick reply.

Yes, I took on this home computing initiative AFTER my trust was signed so therefore it's an unprotected debt that I have basically accrued by terminating my employment (which I felt I had to as my mother-in-law became more ill and I couldn't cope working, looking after her needs and my own children) I certainly didn't realise at the time of purchasing this computer that I would end up having to terminate my employment - it was unforeseen. I was having £31 deducted from my monthly salary, meant to be over 36 months, but have only paid a fraction.

I'm just worried that my ex employer will try to take me to court because I should have told them I was in a Protected Trust Deed - I honestly didn't think about any of that when I took on the home computing scheme as it was work-related and a benefit-in-kind and I was in employment. Now I'm faced with this large invoice, I feel very stupid that I am back in debt while in a PTD. I'm worried that they will see me as being very complacent, and I can understand why.

Should I tell my ex employer (when they phone me back) that I am in a Protected Trust Deed or just tell them that I can't afford to pay it all in a lump sum. Should I keep quiet about the PTD? Maybe that sounds dishonest, I don't know anymore! Help!

Hi Mark

Many thanks for your reply also. I have checked my agreement with the Home Computing Initiative and it states (in tiny writing!) that if employment is terminated within the period of the agreement, that any balance owing must be paid within 30 days, so it's not looking good.

Can you give me any advice on what to say to them when they get in touch? If they don't accept a payment instalment arrangement, should I explain to them that I am in a PTD? Or just tell them anyway?

Hi betterlife

The debt is not included in the trust deed so I wouldn't mention it.

I think you should explain your circumstances and make the offer of repayment. I dont see them going to court when you are attempting to settle in terms which mirror the original agreement.

Mark

Thanks Mark.

I completely agree with what you suggest and hope that they do too - many thanks for a great forum with quick advice! It's good to share a problem!

Hello Betterlife

A number of years ago I ran the HCI scheme for a large organisation.

At a high level this is how it works -

Technically speaking the employer is supposed to take the full remaning balance from your final salary upon leaving employment but this appears to have been missed, this is usually down to HR records not being as up to date as they should. Your employer is regularly invoiced by the HCI company providing the computers so they ingather funds from employees through salary sacrifice to pay the HCI company. Your employer does have the right to demand immediate payment as you have now terminated your employment. HOWEVER, your employer will not wish to pursue this legally at this stage and would rather you begin a dialogue with them about repayment - you don't have to tell them about your Trust deed but if you explain that you are not working and offer a reasonable amount which should be your previous monthly payment then they may agree to this - they may even agree to a partial lump sum settlement and write off the rest. Normally hand back clauses aren't included these days as the HCI company doesn't really want a used computer back but if it's still quite new they may consider this as part of the payment. But I strongly recommend talking to your employer as they will have experienced this before and tell your Trustee if this will have any impact on your ability to pay your monthly payments.

hope this helps

Hi Cannypay

Thanks for your reply.

My ex employer did actually take all of my last pay as settlement, however I left on 4th April therefore my final pay was only about £80.

As soon as I received the invoice today I phoned them and had to leave a message on their answering machine. As yet, I'm still awaiting a return call so I may have to try again.

There is no chance I can even pay part lump sum settlement as I have zero savings, however after the replies on this forum I am a bit more confident that they will accept payment instalments similar to what I would have been paying had I still been working there. I don't mind if they take back the computer as part settlement but I've had it now since November so it's already got a few scratches (young daughter uses it for homework assignments) so can't see them taking it back as it's not in mint condition.

I have also been in touch with my Trust Deed people about struggling to now pay my instalments to them and the last thing I want is sequestration - I am hoping to either reduce my payments or temporarily put them on hold, not sure if this is possible? They need my P45 before they can look at this situation, something my ex employer hasn't passed to me yet, maybe because of my still owing them money possibly??

No problem betterlife - glad to help.
I didn't have many cases to deal with similar to yours but I did agree to a payment plan mostly. Unfortunately I did have to pass on the details of a small minority to our debt collection agency BUT only for those that failed to engage in any communication at all. Communication is key here and you've made the first step in contacting them. I'm sure you'll be fine - let us know how you get on and
Good Luck

Hi,

Just a short message to let you know that my ex employer got in touch with me yesterday to say they would allow me to pay off the computer at £40 a month for the next 2 years, so am very happy that they have agreed to this, as initially they were asking for £80 when they called me last week, which there was no way I could afford on top of my Trust Deed payment each month.

Very glad that the situation has been rectified and many thanks for the help/advice received here.[:)]

That's great news betterlife, and also a wonderful insight from cannypay.

I bet you are relieved, I was following this post, glad it's sorted and hope that mother in law will get better soon.

great news

paul