ERICOPLC:
It is a two way thing. If your sister is dismissed she will not pay back, as she goes home with nothing. But that means she may not be gainfully employed by any government or an established private company anymore.
If her job was terminated, the loan balance will be deducted from her terminal benefit.
If she is on contract/temporary appointment, the appointment letter would have spell out what will happened in this type of case.
But this defer from company to company as industrial practice.

ERICOPLC:
It is a two way thing. If your sister is dismissed she will not pay back, as she goes home with nothing. But that means she may not be gainfully employed by any government or an established private company anymore.
If her job was terminated, the loan balance will be deducted from her terminal benefit.
If she is on contract/temporary appointment, the appointment letter would have spell out what will happened in this type of case.
But this defer from company to company as industrial practice.

she will not pay back the money she chop alone abi?Banks aren't doing charity when it com to load/recovery.Trust me,she go pay the last kobo and nothing go hapun

She does not owe the bank a dine, get a good lawyer. Or check her employment agreement. Loan is a tool bankers use for their long term stay in banks

ultron12345:
You are not even asking that the loan be paid back in installments rather u want the loan to be forfeited.....hmmm......people are wicked.


What did the loan agreement or policy say about loan repayment when the employee Is sacked?

Is he really wicked ? i don't think so.

ziddy:


bofia 2004

Dude, what section of the BoFIA says that? Not enough to throw BoFiA about.

ipobarecriminals:
"sew" them on top of another customers money abi?Dey forced the loan on her/she asked for it?Dey there dey speak grammar.I'm in that system too,so i knw watsap.

Did you bother reading what I responded to? They have no right to defame her on credit bureau. She was paying instalmentally while employed, what make them think she has enough fund to clear the loan now that she's been dismissed.

ddestiny145:
Dear brethren. Please do advice. My sister'S appointment got terminated in a bank and she was asked to refund the loans she collected from her office. Note:she had no intention to live the bank. The loan was meant to be deducted from her monthly salaries. Lawyers in the house can she make a case in the court. Since she didn't resign but the bank ask her to go,invariably the bank should also forfeit the loans since they terminated her appointment.

Tell her to DM me asap. Free legal advice

GratefulHeart23:


She can sue them for that. Most Banks would consider restructuring from Staff loan to commercial loan or go after 'naive' guarantors due to the uncertainty of the loan recovery duration.

In this era of MicroRate Client Protection palaver, recovering this type of loan can take like forever coz as a Bank, you can't force a client to repay a loan when he/she has no means of sustenance let alone repayment. As a Bank, all you can do is either wait till he/she secure a means of likelihood and agree on an instalment which might take like forever in this present economy or try your luck by going after her guarantors.

Mind you, a learned guarantor won't make such repayments coz the default isn't voluntary on the part of the client. Events of job loss, death, fire outbreak, flood and other natural disasters are not usually included in the guarantee form, insurance and restructuring do take care of such.

Repayment by restructuring do take long. Ideally, you only have the right to blacklist such clients on Credit Bureau if there are evidence that you have contacted the client and yet he/she refused to pay after securing a means of livelihood.

In a contry like Nigeria, this loan is as good as a write off, repayment might never come back. I smell termination due to fraud or flaunting any of the contractual terms here anyway coz if the job loss is due to downsizing, the person involved won't be compelled to pay.

Not all banks request for guarantors, I know of banks that just require referee information i.e name, address, employer, number of years he/she knows the applicant. And such person doesn't need sign any form, just provide information. During call verification, the referee is not even told that his/her contact is about getting a loan

Also, as long as the loan has been disbursed, it becomes live automatically on CB. You don't expect the bank to report the ex staff is paying as at when due, when reporting such would surely come back to hunt them.

That's the way it is with the banking industry, d will ask u to resign and you will pay back yout allowances and reimbursement. Let get pay back when she gets a Job. After a year the will start charging her interest and report her to credit bureau.

She does not have to pay back any remaining balance. The job is gone. She didn't resign. She was sacked so they are the ones who terminated their agreement on repayment means.
A bank employee took out a car loan. She was laid off later. She went away with her car and didn't finish paying back. She went to have her baby and didn't go back to look for work. Where did they expect her to get money to repay them? That was how this woman got a free ride.

ddestiny145:
Dear brethren. Please do advice. My sister'S appointment got terminated in a bank and she was asked to refund the loans she collected from her office. Note:she had no intention to live the bank. The loan was meant to be deducted from her monthly salaries. Lawyers in the house can she make a case in the court. Since she didn't resign but the bank ask her to go,invariably the bank should also forfeit the loans since they terminated her appointment.

DM me for free legal advice.

AceVentura:
@Poster,

Please ask your sister what she did that made the Bank ask her to go.

If she was relieved of her duties due to downsizing, the Bank usually clears any loans that she has with them.

In my opinion, she was involved in something fishy thus her predicament. Tell her to be truthful before coming here to ask for help....

So says a "banker".

I never expected to read a VERY ACCURATE POST...kudos as you have mirrored it all.

Tell her to negotiate with the bank, or even beg to see a way of making it easier on her. They could be kind enough. Because for her employer to ask, it simply means it's in their terms and conditions.
I wish her good luck with that.

They can't force her to pay the loan in full at once, there are different types of loan and staff is entitled to, some loans attracts a guarantor whom will also be a member of staff, any failure to repay back by the beneficiary or disengagement from the bank, the guarantors will be notified for indemnity.
If there isn't any collateral like guarantor, hence the account of the staff will be debited not by mounting pressure to repay once.

The person involved should tell the bank to meet her at court, am very sure they won't Dare it.

We need to know our right cos some employers are just exploiting their staff

Beowulf:


Dude, what section of the BoFIA says that? Not enough to throw BoFiA about.

Go read it up! What's wrong with you lot? You can't be ignorant & lazy at the same time that's just all shades of wrong!

ddestiny145:
Dear brethren. Please do advice. My sister'S appointment got terminated in a bank and she was asked to refund the loans she collected from her office. Note:she had no intention to live the bank. The loan was meant to be deducted from her monthly salaries. Lawyers in the house can she make a case in the court. Since she didn't resign but the bank ask her to go,invariably the bank should also forfeit the loans since they terminated her appointment.

That no be problem.
They sack her. They would pay her severance package.
Severance package will be used to offset her loan. If the loan still has outstanding after offsetting then they 'll have to stop interest on dropping in her accout.

If She gets another job and she needs reference from her former employer, they 'll report that she has loan to settle or they will tell her to pay up the loan befor they can give her reference letter.

Also she'll let her new employer know she has loan. This is normal in corporate employment. They will takeover her loan and pay her previouse employer while it runs as a loan for her in the new company.

She must be employed again to be able to pay back her loan.

Guitarlife:
@Op no doubt there will be a lot of uninformed suggestions here, far too many commenting have never worked as a full staff in a financial institution and therefore do not understand the circumstance of the issue.

There are two things involved here, are you referring to the upfront Quarterly payment that the bank regularly pays its staff and housing allowance paid at the start of the year or a loan by your sister where she requested for one and it was approved with legally binding documents signed ?

If it is the former (first) then, I'd say that the bank does not have any legal stand to demand your sister to pay it back because under the law there must have been an application and subsequent approval and acceptance of the said loan for loan agreement to be binding.
In this case your sister never applied for the loan therefore she is not technically obligated to pay although I am aware the bank might still throw her account into debit and start accumulating interest after some months. This to me isnt an issue per se cos there aint no binding agreement while the only issue might be that the bank may not provide a positive reference for your sister in future in case she chooses to apply for another jjob and need s the bank to referee her as having worked with them before.

Now to the second scenario, Your sister indeed applied for the loan and I understand she might signed some legally binding documents too. However, while she is morally obligated to pay the loan back their might not be a consequence as such most likely what i wrote up there will suffice too, it depends on the approach that the bank decides to take but I am aware that since no collateral was submitted which should be the case in a regular structured loan the case might not well compare with someone who took a regular loan out there.

I will want to read from other experienced folks too as this is an an opportunity to learn.

Thanks.

Informative stuff you put up. Nice one

ddestiny145:
Dear brethren. Please do advice. My sister'S appointment got terminated in a bank and she was asked to refund the loans she collected from her office. Note:she had no intention to live the bank. The loan was meant to be deducted from her monthly salaries. Lawyers in the house can she make a case in the court. Since she didn't resign but the bank ask her to go,invariably the bank should also forfeit the loans since they terminated her appointment.

What i have seen from those around me in this scenario is that the loan is commercialised (higher interest rate)

The sacked staff is asked to pay back the loan

Most resist paying because its the bank that laid them off.

The bank usually cannot do anything about it.

They simply wait for your next employer to ask for a LETTER OF REFERENCE, which they (the bank) will refuse to give you unless you pay back the loan.

The new employer now has two choices;
To not confirm your appointment and lay you off too
Or, accept you that way without the reference.

But remember, every bad loan is a killer.
Aside from the default rate which accumulates over time,
You really cannot borrow from any mainstream finance house again for life, unless you clear the loan.

And when you decide to travel out, another matter.....

20 years down the line nko?
A political appointment or prestigious award somewhere turns sour when monitoring spirits decide to dig up your past.

Moral of the story? PAY YOUR DEBTS
There is no justice in this world.

Sorry...

ziddy:


Go read it up! What's wrong with you lot? You can't be ignorant & lazy at the same time that's just all shades of wrong!

Dude stop blowing your gasket. Do you know how many sections BoFiA has got? Let me tell you, BoFiA says no such thing hence your inability to cite the relevant section. If I say anything based on any section of the law, I will point out the provision to you straight up. Don't send me on a wild goose chase when you know there is nothing there. You people come on social media spouting ignorance and when you are challenged you get upset.

Unionised:


What i have seen from those around me in this scenario is that the loan is commercialised (higher interest rate)

The sacked staff is asked to pay back the loan

Most resist paying because its the bank that laid them off.

The bank usually cannot do anything about it.

They simply wait for your next employer to ask for a LETTER OF REFERENCE, which they (the bank) will refuse to give you unless you pay back the loan.

The new employer now has two choices;
To not confirm your appointment and lay you off too
Or, accept you that way without the reference.

But remember, every bad loan is a killer.
Aside from the default rate which accumulates over time,
You really cannot borrow from any mainstream finance house again for life, unless you clear the loan.

And when you decide to travel out, another matter.....

20 years down the line nko?
A political appointment or prestigious award somewhere turns sour when monitoring spirits decide to dig up your past.

Moral of the story? PAY YOUR DEBTS
There is no justice in this world.

Sorry...

Bro, you are very informed.
Can you shed more light on the circumstance surrounding repayment of housing and salary upfront ?
You know the bank gives its staff their full housing allowance at the beginning of the year and most also pays quarterly upfront.

Since these allowances are not outright loan requests but a form of salary advance, will the bank be right to demand a repayment especially of pro rated housing allownace since the staff is expected to have rented a house and paid for a year in full ?

Experienced inputs please.

She has nothing to fear if she want to go into private practice, unless she wants to work again and she need the bank reference. When some one collects loans or advances from an organization there are always guarantors who are also supposed to be staff of the organization. Also at point of termination or retirement, the staff liabilities are supposed to be subtracted from any of his/her benefits and the balanced paid to such staff. So any loan or advance taken would have been deducted from such amount and I am sure that no organization will give you loan that is more than your accrued benefits. If it is a case of dismissal she would not be entitled to any benefit unless pension ( that is if the pension is been paid by another independent pension company) so the company can not deduct her loan from her benefits since there would be no benefits and she does not need to disturb her self about paying back because whether she pays back or not the bank can not do her anything and even if she pays back the bank will not be a good referee for her if she was dismissed. So I will advised her too just lockup. That's all.

Guitarlife:

Bro, you are very informed.
Can you shed more light on the circumstance surrounding repayment of housing and salary upfront ?
You know the bank gives its staff their full housing allowance at the beginning of the year and most also pays quarterly upfront.

Since these allowances are not outright loan requests but a form of salary advance, will the bank be right to demand a repayment especially of pro rated housing allownace since the staff is expected to have rented a house and paid for a year in full ?

Experienced inputs please.

Believe me when I say it's an argument an employee cannot win.
Housing and education are a form of advance for you to be comfortable enough to concentrate on the job.

While they are not loans in the real sense, you are supposd to work for it in the course of the year.
So, if you leave within the calendar year in question, repayment will be prorated and dropped into your account.

The banks have good legal advice on this.
It's a lost cause fighting it.

My opinion though.

Unionised:


Believe me when I say it's an argument an employee cannot win.
Housing and education are a form of advance for you to be comfortable enough to concentrate on the job.

While they are not loans in the real sense, you are supposd to work for it in the course of the year.
So, if you leave within the calendar year in question, repayment will be prorated and dropped into your account.

The banks have good legal advice on this.
It's a lost cause fighting it.

My opinion though.

Lets put this in perspective. The staff employment was terminated. The staff did not resign.

Secondly a proper loan must be collaterized and also an offer letter is supposed to be signed by the debtor.

Without these offer letter a loan is not valid therefore Credit Bureau cannot be involved.

Therefore in the case of upfront and housing allownace the only issue will be bad reference from the organisation in future.

Beowulf:


Dude stop blowing your gasket. Do you know how many sections BoFiA has got? Let me tell you, BoFiA says no such thing hence your inability to cite the relevant section. If I say anything based on any section of the law, I will point out the provision to you straight up. Don't send me on a wild goose chase when you know there is nothing there. You people come on social media spouting ignorance and when you are challenged you get upset.

If you were only half as informed as you pretend to be, you would know how to locate specific information without reading an entire document. It's there spelt out in black & white but I'm not going to point you to it because you're arrogant as well as ignorant.

Xyzee:
I would give you my experience after working for 4 commercial Banks for a total of11 years.

That story above sounds like STANBIC IBTC Bank. I want to believe her appointment was terminated as a result of performance after getting a NOT MET rating in the annual performance Appraisal exercise. The Bank places you on a Performance Improvement Plan for 3 months with double of your budget and if it is not met, your appointment is terminated.

After termination, nothing is paid to you and your salary for that month is used to pay down part of the loan. However, there is a JOB LOSS INSURANCE done on the loan, which mandates the insurance company to takeover the repayment of that loan, in the event of job loss.

Thank you.

What type of loan is that please? Was it voluntarily applied for?

Thanks.

elampiro:
When I joined banking many years back, loans were written off upon termination of staff employment. Then a severance package would be given to the staff as an appreciation for serving the institution. But over the years, with new CEOs, everything has changed for the worse. Those days if you put in five years, you would be qualified for an exit package. You can say you are tired, you resign and collect your exit package. The profit now is far far higher, yet the staff welfare has become poorer.

There has to be a new orientation in the corporate world.

Hmmm. It has even gotten worse sir. In some places, you waive your right to a severance package, if you resign of your own volition.

Tinyemeka:


Hmmm. It has even gotten worse sir. In some places, you waive your right to a severance package, if you resign of your own volition.

I know. There is a limit to which I can say.

ziddy:


If you were only half as informed as you pretend to be, you would know how to locate specific information without reading an entire document. It's there spelt out in black & white but I'm not going to point you to it because you're arrogant as well as ignorant.

I had to download a PDF of the BoFIA and go through it in its entirety. Could you kindly point out the section that applies to OP's case. Said sacked staff is not a Management staff or Director.

Thanks.

elampiro:


I know. There is a limit to which I can say.

Kk. Understood.

praise010:


Yet to be received. Check the email and ensure it was properly sent

Please can i send you a mail too. I'm facing same issue, although I'm not a banker. I resigned from my job in September to start a new one in October. I took loan from a bank which they deduct monthly. Now they are saying they can't continue the loan with my new job because they don't have any contract with the new coy. They want me to pay everything once. They have started accruing interest already. My payoff from my former employer will also come in that account They even ceased my September salary. Remember my first pay with the new coy is October ending. What do i do?

doyouknowjohnny:
most cases I know that relate to staff loans, 9 out of 10 these loans upon termination of employment by the employer are paid piecemeal by the employee only when he/she has secured another means of livelihood either by mode of another job (full/part time) or self employment. Method of payment is usually a fixed sum and could be as low as ten thousand naira per month..
However this only applies to staff loans which were acquired without any direct link to the purchase of a tangible asset I.e cars, property electronics..
If it relates to the latter the employer invariably has the right to claim the said asset and also a right to receive further payments if the asset is valued below the said amount or would sell the asset and remit any balance due to the employee (most unlikely) if the asset is valued above the said amount
NOTE: No further interest would be charged on the loan if it relates to a financial institution

Please can we talk? Send a pm pls.

Xyzee:


Na Stanbic IBTC ?

For my own. YES