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.

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?

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?

The person in question didn't resign infarct finding another job was not an option. So now that the employer decided to part ways. Shouldn't the employer bear the loss? Secondly the loan ought to be paid from her salary in that organization. So who is wicked?

Op your sister should ask the bank to restructure the loan as in if it was a staff loan they should change it to commercial loan. Your sister should have it in mind to pay the loan once she secure another job. Nevertheless she is not under any obligation to pay the whole money once as it was a loan to be paid from monthly salary. Thanks

Good talk

dudu200:
Op your sister should ask the bank to restructure the loan as in if it was a staff loan they should change it to commercial loan. Your sister should have it in mind to pay the loan once she secure another job. Nevertheless she is not under any obligation to pay the whole money once as it was a loan to be paid from monthly salary. Thanks

Thanks alot. But if she decides to be self employed nkor?

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.

Fear God!!!!

She should find a way of completing the repayment of the loan.

Funny enough,you didn't state the reason for termination of the appointment.

@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.

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.

Thanks alot. More opinions please.

ddestiny145:


Mail sent sir

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

praise010:


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

Morning, please I just copied the mail from your response and sent see mail copied."elchariotlp@gmail.com"

; Do

What do I know

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.

Leave not live, anyway lawyer's over to u, anyi nwele evu nwee npu

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

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.

Do you know the contents of her employment contract?it will go a long way to make a case for her,if any favourable and advantaged clause can be found..

Banks and some experienced private companies are crafty when drawing up employment contracts.
They hire and fire with reckless discretion.

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.

Na Stanbic IBTC ?

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. Prior to this time, the insurance pays for only one year and the Bank later activated the Insurance to cover for the entire Principal upon job loss. See SMS confirmation from them (We have upgraded your loan insurance cover to cater for full payment of outstanding principal balance in the event of job loss. Call 012709676 for details.). Just 3 weeks after the termination of my appointment, they started calling and writing that I has to pay them and I wrote back that I wasn't owing them and forwarded the SMS to them, their excuse was that I was terminated before the migration. Then whose fault and why was a confirmation sent to me? If your sister is in this boat, she's not owing them a kobo.

Also, where do they expect her to pay from? Has she started working already? Then she should just let them know that she would pay when she gets a job. Have they finished recovering the billions from the business men?

The Bank job is a big scam and you need to tell your sister about it.

Thank you.

She will have to pay. The bank can't forfeit it. The bank will restructure the loan to a commercial loan and not a staff loan with little or on interest.

The reason the bank asked her to pay immediately is because they know once it's a commercial loan it will be difficult for her to pay as the interest rate would increase.

It's not like if she doesn't pay now they will come after her. It will only dent her credit rating. What that means is that she would have a bad loan rating as a defaulter who doesn't repay as at when due, if she even pays much later and secures another employment elsewhere and applies for a loan, be it commercial or staff loan, it might not be granted because her rating would have been dented as a defaulter in credit bureau

Hmmmmmmmm

The fact that your sister's employment was terminated by the Bank does not release her from her obligation of repayment to the bank. The bank has been very benevolent in granting her the loan in the first place and that is not a security of employment. What was her offense for termination? This you have not told us. If she is in violation of policies, she should hold herself accountable.

ddestiny145:


Thanks alot. But if she decides to be self employed nkor?

she must sha pay the loan back.






No be she chop the money.....

this op you like awuf, na so bank dey forfeit? all these bankers living fake lives with big loan on their neck, forget lawyer she has to pay, only thing is they can't force her to pay once, as earlier stated, it will be treated as a commercial loan

Oga, the loan must be repaid but not immediately, let no bargar pressurise her into Doin such. They need to negotiate the New paying terms. More so, the loan doesn't have any collateral tied to it So nothing for them to sieze

fs

ddestiny145:


Thanks alot. More opinions please.

i see you are leery of dropping more details, maybe the circumstances leading to her exit from that job were less than savoury. That guy said it all. She can walk away and try to forget she ever worked in a bank (no references, ever). There is nothing the bank can do to recover said indebtedness except sit on her references.

All loans given out by banks are meant to be collateralised, under Nigerian law. Any bank that gives out an unsecured loan breaks the law!

Beowulf:
Op, sorry about your sister's predicament. It is typical of banks to behave that way when they terminate your employment. Please note that an employer has a right to terminate your employment for no reason. The type of employment you have will determine the consequences the employer will suffer for such arbitrary termination. For the one your sister and most employees have in Nigeria, you are entitled to nothing more than your salary in lieu or any other payment accrued to you prior to or upon the termination.

To your specific query, the bank has no legal basis to accelerate the loan because they instigated the process of making your sister's ability to pay the loan untenable, at least for now. If you look at the offer letter for that loan, it should state that the bank has a right to change the interest rate on the loan. What the bank will do now is to charge your sister interest at a commercial rate and not at the concessional staff rate which is currently on.

I will advise your sister not to panic about the loan. The key thing is for her to get a new job. Once she does, she can discuss with the loan work-out unit of the bank on restructuring the loan payment. If she speaks well, they may even still keep or revert the interest at the staff rate.

Finally, I don't advise that you do this but many ex bank staff never get to repay their loans especially when laid off. Nothing will generally happen but you will have a bad credit history. Most folks don't know it but we have a credit database in Nigeria once you borrow from a bank. You won't be able to borrow from another with a bad credit history once the credit check is done. Secondly, you won't get any reference from your bank for a new job unless you repaid them their money. I wish your sister all the best and know that it's not the end of the world.

Spot on bro

Let me quickly address OP's concerns. See ehn, banks are not structured that way. Whenever a staff is sacked, the best the bank can do is to restructure the outstanding loan which becomes payable by the staff at the agreed date. If the reverse is the case, then virtually all employees will apply for different facilities repayable say for 30years. Hence, with that kind of risk on the part of the bank, employees can decide not to put in their best at work since they are sure of not losing anything in case they are sacked unexpectedly.

Op, sorry about your sister's predicament. It is typical of banks to behave that way when they terminate your employment. Please note that an employer has a right to terminate your employment for no reason. The type of employment you have will determine the consequences the employer will suffer for such arbitrary termination. For the one your sister and most employees have in Nigeria, you are entitled to nothing more than your salary in lieu or any other payment accrued to you prior to or upon the termination.

To your specific query, the bank has no legal basis to accelerate the loan because they instigated the process of making your sister's ability to pay the loan untenable, at least for now. If you look at the offer letter for that loan, it should state that the bank has a right to change the interest rate on the loan. What the bank will do now is to charge your sister interest at a commercial rate and not at the concessional staff rate which is currently on.

I will advise your sister not to panic about the loan. The key thing is for her to get a new job. Once she does, she can discuss with the loan work-out unit of the bank on restructuring the loan payment. If she speaks well, they may even still keep or revert the interest at the staff rate.

Finally, I don't advise that you do this but many ex bank staff never get to repay their loans especially when laid off. Nothing will generally happen but you will have a bad credit history. Most folks don't know it but we have a credit database in Nigeria once you borrow from a bank. You won't be able to borrow from another with a bad credit history once the credit check is done. Secondly, you won't get any reference from your bank for a new job unless you repaid them their money. I wish your sister all the best and know that it's not the end of the world.