Can employer offset redundancy against credit card debt owed to them

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frankenstein

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If a bank gives involuntary statutory redundancy to an employee, are they allowed to deduct any amounts owed to them by the employee in the form of a credit card debt, before they pay out the redundancy. As far as I am aware the credit card contract states that the employer can offset an employees final wage against any money owed to them on a credit card.
 
A couple of points:-
As I understand it, the relationship between a bank and an employee is normally an entirely separate relationship from the relationship between a bank and a customer, even if both are the same person. There is normally no clause in a standard credit card Ts & Cs which allows the employer to deduct amounts owing.

However, it is possible that an employee may have special terms on the account (e.g. preferential rate or higher limit) as part of the employment package. The terms in that case would be written into the contract of employment, rather than into the credit card Ts & Cs
 
The problem is that redundancy was only announced a few weeks ago and what would be left over for some people is zero. This will cause severe hardship for some people. It is a special credit card introduced for employees with an average interest rate and has different t&c. It is most likely that there is small print somewhere that the Co. is allowed to offset the debt, but is this really fair and has it happened to anybody else.
 
frankenstein said:
The problem is that redundancy was only announced a few weeks ago and what would be left over for some people is zero. This will cause severe hardship for some people. It is a special credit card introduced for employees with an average interest rate and has different t&c. It is most likely that there is small print somewhere that the Co. is allowed to offset the debt, but is this really fair and has it happened to anybody else.
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In private sector, if I took a loan, advance from my employer i would be fairly sure that it would be offset and i would accept it.

If they give a special rate, only reason you got it is they were your employer

To get around your issue why not now tranfer credit card to another bank at 0% and get full redundancy
 
credit is not being given now so getting a 0% cc to do a balance transfer sounds good but unlikely to be a reality. Offseting credit card debt against redundancy may be akin to recalling a loan early, a practice which is, although legal, considered harsh by any standards.
 
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