How to Breach an Employment Contract and Get Away With It?

kegkilla

kegkilla

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At my last employer I accepted a measley $3k signing bonus with the stipulation that I stay a year. I stayed 11 months and went elsewhere. They want the entire $3k back. I told them I'd pay the prorated portion back, otherwise they can get fucked, and now they are threatening collections.

My questions are:
If it gets sent to collections, how badly will it affect my credit score?
How likely are they to actually send it to collections over an amount that small?
How would collections handle it? Call me up a bunch and annoy the shit out of me?
 
ZyyzYzzy

ZyyzYzzy

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If you signed thay you would return it in full unless employed for 12months, you owe it in its entirety
 
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Siliconemelons

Siliconemelons

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Yeah... I don't see where the idea of prorated comes from? If its not in the contract, then I think "Get 3k NOW and you STAY 12MONTHS" is fairly black and white... give them their 3k.

I wouldn't know exactly how the collections would proceed as its not like a credit card or something - I am sure they would put a hit on your credit that will indeed last for 7 years and you will get hounded by collections. If collections feels they can make $ and involve litigation, they will involve litigation - its what they do for a living.

you have to remember, generally its not about the $ its about the principle of the matter - they will sell the collection to the company for like 100$, so the company has 2.9k+$ in money to make up the 100$ that they paid - the collections agency most likely will take a compromise just so they can make money. But if they feel they have a case to bite down on legal action and make their money back or more - they may...its always may...

Also, it somewhat depends on "who" puts the report on your credit- if its the agency that reports it, and you resolve with the agency its "fairly easy" to report to the credit agencies its resolved and have it noted. If the employer does it, and then passes to the collections, and you settle with collections, the credit agency generally will not care what the collections agency tells them, they will care what the reporter says- and they may/may not really care or actually reverse the hit on your credit even after "resolved".
 
Cad

Cad

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I'm really not sure an employment issue like that can be reported to the credit agencies, usually it's commercial transactions.
 
Frenzied Wombat

Frenzied Wombat

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Unless they have an established relationship with a deb collection agency for other aspects of the business, they'd have to be retarded to engage an agency for a measly 3k, particularly since they'll be lucky to get $500 from the agency itself in exchange for the purchase of the debt. I'm thinking it's either a bluff or they'll come after you in small claims court or something.

And yeah, collections will just call and hassle you, trying to negotiate some number that will get you to pay up now.
 
kegkilla

kegkilla

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Cad said:
I'm really not sure an employment issue like that can be reported to the credit agencies, usually it's commercial transactions.
Click to expand...
A quick Google search shows a few other examples of this happening so I don't think it's entirely bullshit but I'm still not convinced they would even pull the trigger on it.
 
Noodleface

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They'll send him a bill and then send that unpaid bill to collections.

You don't want collections on your credit score. I had someone open a sprint account in my name that went into collections over $150. When I went to get a mortgage this was a huge deal (and news to me) . They didn't even want to lend us a $265k loan strictly because of this one account in collections for $150.

Sometimes you can pay for delete to have it removed but I wouldn't deal with that shit.

My last company said I'd owe a prorated amount back too but haven't sent me a bill. You had to have known they'd be coming after you? Your offer letter should've explicitly stated they wanted it back in full.
 
kegkilla

kegkilla

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Xadion said:
Yeah... I don't see where the idea of prorated comes from? If its not in the contract, then I think "Get 3k NOW and you STAY 12MONTHS" is fairly black and white... give them their 3k.

I wouldn't know exactly how the collections would proceed as its not like a credit card or something - I am sure they would put a hit on your credit that will indeed last for 7 years and you will get hounded by collections. If collections feels they can make $ and involve litigation, they will involve litigation - its what they do for a living.

you have to remember, generally its not about the $ its about the principle of the matter - they will sell the collection to the company for like 100$, so the company has 2.9k+$ in money to make up the 100$ that they paid - the collections agency most likely will take a compromise just so they can make money. But if they feel they have a case to bite down on legal action and make their money back or more - they may...its always may...

Also, it somewhat depends on "who" puts the report on your credit- if its the agency that reports it, and you resolve with the agency its "fairly easy" to report to the credit agencies its resolved and have it noted. If the employer does it, and then passes to the collections, and you settle with collections, the credit agency generally will not care what the collections agency tells them, they will care what the reporter says- and they may/may not really care or actually reverse the hit on your credit even after "resolved".
Click to expand...
Yeah I mean if it hits my credit score then I'm working under the impression that there's nothing I can do to get it off and I'll let it ride for 7 years.
 
kegkilla

kegkilla

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Noodleface said:
They'll send him a bill and then send that unpaid bill to collections.

You don't want collections on your credit score. I had someone open a sprint account in my name that went into collections over $150. When I went to get a mortgage this was a huge deal (and news to me) . They didn't even want to lend us a $265k loan strictly because of this one account in collections for $150.

Sometimes you can pay for delete to have it removed but I wouldn't deal with that shit.

My last company said I'd owe a prorated amount back too but haven't sent me a bill. You had to have known they'd be coming after you? Your offer letter should've explicitly stated they wanted it back in full.
Click to expand...
Yeah I mean I don't dispute the fact that I signed an agreement saying I'd repay it in full if I left. However I do think it's a shitty thing to enforce in this situation and they should go fuck themselves.
 
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Picasso3

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kegkilla said:
Also what kind of hit will this be on my credit? I'm like 750 now
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I had a 187 dollar medical bill hit mine for about 80 points.

Dad had similar exp, from 830 to 740 over some dumbass medical bill he never knew about.

Collections is #1 credit assfuck and equivalent to about 700 years of on time payments
 
P

Picasso3

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kegkilla said:
Yeah I mean I don't dispute the fact that I signed an agreement saying I'd repay it in full if I left. However I do think it's a shitty thing to enforce in this situation and they should go fuck themselves.
Click to expand...

What a coincidence.
 
ZyyzYzzy

ZyyzYzzy

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kegkilla kegkilla if you do end up just cutting the check to repay it, be sure to rub said check over your balls after leg day to get a nice stank on it.
 
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Cad

Cad

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I took an 80-100 point hit for 7 years over a 50 dollar credit card bill my wife signed up for that I never knew about, never got a bill for and the first I ever heard about it was when I got called by a collection agency. Paying the collection agency won't get it off your credit report so whats the point...
 
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