suppose i work for a mortgage bank, and I default on a loan from them, is that grounds for firing?

Deal Score0

Please site any sources if possible.

8 Comments
  1. Reply
    Mike
    May 16, 2011 at 4:09 am

    No, but if you did it woud take a laywer to get ur job back. or a sedlement!

  2. Reply
    onceisenoughilearnedmylesson
    May 16, 2011 at 4:19 am

    probly….you are just another bad debt

  3. Reply
    samantha
    May 16, 2011 at 5:03 am

    Probably not, but it could be pretty embarrassing. Also…working for the bank you are in a very good position to talk to someone and get some help….they might help you get straightened around……they don’t want your house back and might help you. At least be open about it…instead of surprising them….that you are having a problem.

  4. Reply
    deneansmith@att.net
    May 16, 2011 at 5:54 am

    Look at your contract or handbook, if it states that then yes. But if it’s not apart of the contract or handbook it’s like any other loan. More than likely they will keep you and garnish your wages for the amount that is due.

  5. Reply
    Beanzai
    May 16, 2011 at 6:30 am

    If good credit is required for your job, yes.

    48 states are legally at-will states, meaning that you are willingly working for them and they are willingly hiring you. That also means that you can quit at any time and they can fire you at any time- WITHOUT a reason- as long as it is not discrimination as defined by state and federal law. They can fire you for wearing a blue striped shirt if they wanted to.

    If you work for them, you may be able to work something out with them, like taking out a portion from your check until you are current. It might help you keep your job AND keep the black mark off your credit record.

  6. Reply
    Tango
    May 16, 2011 at 6:37 am

    Unlikely this will happen. The reason is very simple, your instalments will be deduced directly from your pay before it is credited into your account if you got a loan from the bank you are working for.

    Still, to answer your “most unlikely supposed situation” question, you need to go back and check your employment contract…. and seek further legal advise if necessary.

  7. Reply
    tuxcatluvr
    May 16, 2011 at 6:38 am

    I would say no they cant. Job is seperate from loan. Just like stated before if there is clause that states that if you go delinquent on your debt and that shows some probable cause for a lack in your wothiness for employment then yes they can fire you. You will have to read through the paperwork or handbooks. I also work for a financial institution and if you defaulted on any loan with them you still kept your job but yes they would garnish you or take what ever you used to secure the loan with away from you. Hope this helped.

  8. Reply
    Gem
    May 16, 2011 at 7:11 am

    Depends.

    Is your job bonded? Defaulting on a loan could put your bond in jeopardy. No bond, no job.

    Have you read your employment agreement or employee manual? See if it states your loans must be in “good standing”. I would think a bank would have the business sense to have that in your agreement, but stranger things have happened.

    Finally, did they do a credit check when you were hired? If they did, then you have to have good credit to work there. Default is definitely not good.

    Keep in mind that your industry is going through mass layoffs and anytime mass layoffs occur, companies look for reasons to fire employees to keep from paying unemployment. Sucks, but is reality.

    Can’t you figure out a way to work with them and stay out of default? Take a second job? Anything?

    Good luck

    Leave a reply

    Register New Account
    Reset Password