Little back story first: I worked for Wells Fargo for about 3 and a half years. All throughout my employment there I was going to school full time and taking advantage of their tuition reimbursement program. The catch is that if you resign or get fired before a full calendar year from when you received back funds that they'll prorate it and you'll have to pay it back. Unfortunately I was let go 2 weeks ago because I approved a real check that was not authorized by the business. It was my 3rd strike, after the 3rd its automatic termination. Any who, I received a letter today from their payroll office saying that I need to pay back a prorated amount by December 27th or I would never be able to work for them again (good news there lol) and "could result in an adverse record with one or more credit reporting agencies." What does that mean? Will my credit score be affected badly if at all? Thanks for the help guys.
How much money is it? They can definitely send the debt to a collection agency and they can put it on your credit report. Edit: It can be pretty severe if what you are intending to do is simply walk on the debt completely.
I'm not sure if this particular situation qualifies, but I do know that student loan debt can be garnished out of your paycheck wherever you work in the future at a rate of 15% of gross pay.
I'm not a contract lawyer so I won't give you advice on the employment contract itself. If you walk on the debt they are definitely going to submit it to a collection agency. It is possible for that to end up your credit report which can be pretty damaging as long as it remains. I don't know enough about this bank, but it is possible they'd negotiate a settlement with you. I had a friend who's company had this type of clause and they agreed to let him pay only half of it back and walk away. It was a small business though so they may have been more open to negotiation than a major bank.
Damn. It doesn't help that my accounts are with WF as well and I'm afraid they could take the money out of there if they wanted to. Guess I'll just do the $50 a month thing.
Wonder how that would apply here. This isn't exactly a student loan is it? It's money owed to a former employer.
I don't believe they could do that. I would definitely recommend you do the $50 a month thing though. You knew the stips when you accepted the contract. Make sure that $50 a month is not hitting you with any sort of interest or that they will be reporting to a credit union that this was a debt at all.
Are you asking if the letter could already affect your credit score, or if NOT PAYING could? Well, I guess the latter you know already... but... I would suppose that if you pay it in full BEFORE the date, it doesn't matter to your credit score... and in fact, it might help. Can't you open a credit card that offers a balance transfer at a lower rate, calculated to be paid in much more time at about the same price for what you need to pay WF?
While I'm no expert on the subject... It's not a federally guaranteed student loan so they can't garnish your future earnings. It's basically a loan from a bank and they'll definitely report you to the credit agencies. I don't think they can just start taking money out of your account, even if it is a WF account. That said, I'd move your account anyway.
All of this is accurate as far as I can tell. I just did some quick research and this is definitely not a student loan. OP, how old are you?
Yeah, I'm thinking it's essentially Wells Fargo paying off his student loans, then giving him a good deal on a private loan with them in exchange. If this is the case, then wage garnishment wouldn't be a concern, as this is only legal with federally guaranteed student loans specifically. But you should really just pay it off either way, mrm.
Tuition reimbursement I though was paid AFTER you completed the semester. Anyway, if they send this to a collection company as a bad dept than it will greatly affect your credit. Best to pay it. It does suck that it was two weeks before.
22. Well I've talked to the HR person and they've adjusted it to where I can pay $50 per month til its completely paid off. Thank goodness there is no due date. I was thinking about a line of credit but this sounds so much better.
Well this was tuition reimbursement I received for the Fall of 2010, Spring 2011, and Summer 2011. They capped it to where I could only be reimbursed $5,000 per year, so I guess only having to pay $3800 isn't so bad.
Basically what happened was our couriers who collect our days work at the end of the day were getting their cars broken into and the thieves were stealing all the checks and deposit slips. They were buying check paper from wherever and copying all the info to the new ones(acct number, routing number, addresses, etc.) They would come into the branch and cash checks without an account number. I would inspect the check(I already had a bad feeling), look up the acct number, check number, everything was in sequence not really anything out of the ordinary so I approved it. It was for about $900+. Turns out these people were hitting a lot of WF branches and getting away with it. They tried it again at our location but we were stalling, needless to say they took off without the check. It wasn't until about a week or 2 later we found out they were bad check. A month later, I saw it coming and was let go, no hard feelings. Sucks the way life is sometimes. I was hoping maybe for some sympathy considering we were robbed at gunpoint the month prior and I had a glock 2 inches from my face but nope. Oh well.
Thats one reason why I don't want to work at banks. Being heldup at gunpoint isn't on my bucket list.
