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Declaring financial situation to current employer - credit card debt(7 Posts)
Without trying to drip feed I am going to make this as brief as I can. I also realise this post is going to make me seem like an idiot who cannot control her finances, but although it sounds it, it's really not the case...
For the past five years have had an ok credit history - car loan paid off ok, credit card not paid off every month but usually about £200 every month paid off.
At the beginning of last year circumstances forced me to hand my notice in. Although I have a solid employment history, with the credit crunch I didnt find a job for the best part of 7 months. I lived hand to mouth (thank you mum) and a wing and a prayer.
Started temping in October and they asked me to become permanent in November (large well known accountants firm) I dont particularly like the job but needs must and so of course I took it.
The pay is £6 grand less than what I was earning.
I spoke to Lloyds TSB and advised them that I couldnt meet the min on my credit card (£2,000 is on it) witha min of £140 ish per month. We set up a temporary agreement whereby I paid £20 per month. I managed to default on this (I realise I sound like a dreadful person here, but it was over Christmas and plus all the birthdays happen at the beginning of the year-not excuses, facts). And so have been in arrears of £60. (Jan Feb March)
I just phoned Lloyds and paid off the arrears, plus provided them more details of situation, etc. They have set up a default agreement for me to pay ''whatever I can'' as my disposable income per month is £12. (I live alone). They have also agreed to freeze the interest for me too.
However, when I started work, I had to sign a disclaimer of many things including owning companies/ declaring oneself bankrupt, etc but also that I had ''never entered into an agreement with my creditors'' (which at that time I hadnt) I have just signed one for 2013 also (have to sign one each year). I am shit scared now that if I tell my employer this then he will sack me.
We are being taken over by a larger accountants firm and people are concerned about the state of their jobs even though we have been assured that there will be no redundancies.
Should I keep this under my hat, or should I tell them? They dont run credit checks as far as I know. And if I was found out I could lie (again, please dont judge me, I am not a terrible person, just a bit broke atm) and say it never even entered my mind....
Sorry for the length of this post. But would appreciate your help.
If relevant - this is the only payment I havent made, I kept up with my rent (sold almost everything I owned on eBay), electricity is on a meter, so I just went without and stored cold stuff in the sink / did washing in the bath, etc. I am definitely living within my means (now) and I am in no way frivulous.
Thank you in advance
I don't know exactly what the wording you signed was (although it is obvious which firm you work for!), but there are various types of "arrangements with creditors" and what you have done doesn't sound like any of them to me.
Note that if it really did refer to "never entered into an agreement with my creditors" (as opposed to arrangement) it would be meaningless - everyone does this every time they borrow money, or even sign up to a mobile phone or utility supply contract!
Oops, I meant to say that the only interpretation that matters is their HR department's of course, assuming (i) they ever find out and (ii) they want to make an issue of it.
Thanks for your help. I cant remember the exact wording, but the arrangement with creditors made it clear that it was a repayment arrangement.
I suppose if the worst comes to the worst, then I could say that when I signed it, I hadnt and it was hardly the first thing on my mind when I did enter into it...
Appreciate that you took the time to comment - thank you
Sorry I wrote that very badly, I'll try again.
I don't know exactly what the wording in the declaration you made to your employers was (although it is obvious which firm you work for!), but an "arrangement with creditors" is a specific legal term referring to one of a number of different processes and the agreement you have reached with Lloyds doesn't sound like any of them to me.
The essential feature of any "arrangement with creditors" is that there is more than one creditor, and that one or more of them agrees to accept less favourable terms than they are entitled to attempt to enforce on the basis that accepting those terms is better than risking pushing you over the edge with the resulting delay and expense of fighting the other creditors in court for what may turn out to be a smaller slice of a much reduced cake anyway. Simply negotiating alternative terms with a sole (material) creditor does not IMHO fall within this scope.
Note that if your employer really did refer to "... never entered into an agreement with my creditors" (as opposed to arrangement) it would be meaningless - everyone does this every time they borrow money, or even sign up to a mobile phone or utility supply contract!
"I suppose if the worst comes to the worst, then I could say that when I signed it, I hadnt and it was hardly the first thing on my mind when I did enter into it..."
No, but it should have been on your mind when you renewed the declaration. It would be better to state that you didn't think that your agreement with Lloyds came under the scope of the declaration if that is true.
Providing you keep to the payment schedule and Lloyds do not change their mind it is unlikely this will ever come to light. Unless someone in the relevant firm's HR or compliance departments is a MNer of course... which is quite likely. I should ask for this thread to be deleted if I were you.
Thank you Mr Anchovy for your help
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