Can my previous employer make me pay for use of a company vehicle?
My previous employer gave me a $5,000/year raise. With that we bought a car for my use. The loan was in the employers name and I made bi-weekly payments from my pay. I paid the loan from my salary for 3 years $5,000 per year. I was laid off due to lack of work but I still had use of the car. My employer was still making payments on the loan. In June of 2010 my previous employer sold the car, after I paid for 4 new tires and a $350 repair to the door. He made me sign a note to pay back the loan payments he had been making. He said it was payment for use of the car. I have been paying him $195/month. The amount of the note is $5,000.
Is this legal? Am I required to make these payments?
Answers (1)
You say that "we" "bought" a car, but it sounds like you put in a down-payment and he took title and financing. But he didn't pay the financing, you did, for 3 years. During those years, it seems that you "used" the car ... for work or full-time? (Do you need a car for work?) Your total equity in this car was then $20000, his $0. After your layoff, it appears that he loaned you the car and took over the financing. (How long?) Then you put more money into it for maintenance. Then he sold the car (and took that money for himself) and "made" you pay $5000 for the "use" of the car during the period when he had "loaned" it to you.
This is not really an employment law question. But it does sound like Fraud, and there is a theory of law called "unjust enrichment" which also may apply. On the other hand, please recognize that it seems you agreed to all of this. Do you have any agreements in writing?
So you definitely should start by calling Legal Services in MA 800-342-5297, and GBLS 617-371-1234,(income limits apply) to see if they can arrange for or refer you to a litigation attorney. Also look up MBA and BBA referral services, or a lawyer in your town.
posted by Kevin McGann | Dec 22, 2010 1:44 PM [EST]
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