If an employer has agreed to make your car payments, what happens if you are laid off?
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If an employer has agreed to make your car payments, what happens if you are laid off?
I worked at a company for almost 8 years. I was “let go” of my job in June, out of nowhere. I was never given an explanation as to why I was being “let go”. Well long story, 2 years ago my bosses gave me a raise and was I given a choice of either getting a cash raise or purchasinga new car for which they would make the payments. I took the cardue to my other car was falling apart and my having extremely bad credit. Anyway, the car was purchased under my mom’s name and my company was making the payments. I was planning at staying at my job for the length of the loan contract which was 5 years. My mom purchased a car for herself last year and the finance company needed a letter in writing from the company I worked for, stating that they were making the payments and would continue continue to do so until the car was paid in full. I have a copy of the letter signed by the president of the company. Would this letter by legally binding, that my company is to still be making the payments?
Asked on November 26, 2010 under Employment Labor Law, California
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
You have a very interesting issue. I believe that you may have an enforceable contract to have your former employer pay off the car. Are there any other agreements on writing about termination and stopping payments? Maybe that if you are terminated they would pay it in full? If not then I would take the letter to an attorney in your area to review and advise as to whether or not it will make it as a binding contract in this scenario. If they signed the loan agreement I doubt that they would wish that the car be repossessed and that a default is listed on their credit history anyway. Good luck.
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