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Author Topic: New benefit ??  (Read 12708 times)

Wearethehearts

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New benefit ??
« on: 15-10-18, 08:02AM »
Tesco are trialling a new partnership with a company called "salary finance" who in essence are pay day money lenders , so Tesco after taking our pay benefits such as our Sunday premiums, bank holiday premiums,part of our night enhancements ,  given us in real terms pay cuts for the last few years , think it's nice of them to give us the chance to enter the cycle of debt with all the mental health and emotional complications that come with it , so just when you thought Tesco couldn't care less about it's employees , they exceed themselves !!!!! Why not just give us a decent pay rise , enough hours to live off ??

spike_pkh

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Re: New benefit ??
« Reply #1 on: 15-10-18, 08:34AM »
I presume Tesco are forcing you to sign up for this "pay day loan"?

No?  Wow your post really makes it sound like it

Wearethehearts

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Re: New benefit ??
« Reply #2 on: 15-10-18, 08:44AM »
Is this even worth the response ?? another self serving I'm alright jack post on here , some but some
min contract staff will be tempted just to find it will make things worse

penguin

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Re: New benefit ??
« Reply #3 on: 15-10-18, 08:48AM »
It’s not even a payday loan it’s a normal loan with payments over many months just taken directly from your pay, no different to setting a direct debit up for a loan repayment each time that you get paid really. The company also offers savings accounts again directly from wages, and nobody is forced to use either service.
Tesco - the moden day word for workhouse

Wearethehearts

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Re: New benefit ??
« Reply #4 on: 15-10-18, 08:56AM »
Upto 19.9% interest , really helping those worse off !!!!

captain

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Re: New benefit ??
« Reply #5 on: 15-10-18, 09:27AM »
Looking at the positive side, 20% interest is quite reasonable for this type of lending so I'm sure Tesco think they are looking after their staff in getting them to avoid loan sharks or other payday loan companies at far far higher interest rate.
Totally agree that if Tesco offer living wage, and reasonable hourly contracts they would be helping their employees far far better

1

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Re: New benefit ??
« Reply #6 on: 15-10-18, 10:55AM »
Trying to do the right thing by working but better off on benefits :question: #nothingnew

Duracell

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Re: New benefit ??
« Reply #7 on: 15-10-18, 11:43AM »
Looking at the positive side, 20% interest is quite reasonable for this type of lending so I'm sure Tesco think they are looking after their staff in getting them to avoid loan sharks or other payday loan companies at far far higher interest rate.
Totally agree that if Tesco offer living wage, and reasonable hourly contracts they would be helping their employees far far better

“This type of lending”! Please elaborate on your comparison for the term. If you are thinking of “high risk” lending,  then that is not a comparison as in that method of lending there is no gaurentee of the debt being repaid or repayments being regular so the risk is covered by higher %.

We are talking about repayments being deducted at source, surely that is pretty much risk free with exception of redundancy.  Surely total repayment and payment regularity are as certain as they can possibly be with a taken from source type of repayment system!  19.9% for such certainty!!!! Words fail me.

Further more if this facility has a “subject to status” then based on that criteria and repayments at source there is no need for % to be so high.

Seriously! with the exception of redundancy or leaving the company, how can borrowers not repay, where is the risk to the lender to warrant 19.9%?
My Opinion is exactly that, Mine.  Based on my view of what I know , see and what I would do.
"Being a rep doesn't make a person right anymore than not being a rep makes a person wrong " 

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Duracell

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Re: New benefit ??
« Reply #8 on: 15-10-18, 12:06PM »
The concept and ideology are very noble and could prove very useful and reassuring for those with unmanageable debt. But 19.9% interest, is this true?  Where has this information come from.
My Opinion is exactly that, Mine.  Based on my view of what I know , see and what I would do.
"Being a rep doesn't make a person right anymore than not being a rep makes a person wrong " 

Duracell.

captain

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Re: New benefit ??
« Reply #9 on: 15-10-18, 12:33PM »
Duracell
Just done a quick search for loans and they vary between 49.9%and 1333% so 20% is very competitive even compared to bank loan rates which run between 5 and 10%.

I take on board you saying that direct debit from your wage reduces the risk from your lender but the large majority of our staff are part time and rely on overtime to supplement their income. All it needs is an overtime ban for a couple of months or 1 weeks sick and this could lead to short term hardship.

Anything that stops robbing loan sharks giving loan out at exhorbitant rates can only be good

Witch69

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Re: New benefit ??
« Reply #10 on: 15-10-18, 02:32PM »
It could be a good idea for some people with bad credit and find themselves with an repair or bill which they cant get a bank loan for this could help them

barafear

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Re: New benefit ??
« Reply #11 on: 15-10-18, 04:46PM »
Is this a trial limited to certain stores or parts of the workforce? Or is it a trial (for all) ....but limited timeframe?
Where are the details? On OurTesco?

lackofinterest

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Re: New benefit ??
« Reply #12 on: 15-10-18, 04:54PM »
surely cheaper to get an account with tesco bank then apply for a loan ???

1

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Re: New benefit ??
« Reply #13 on: 15-10-18, 06:00PM »
Sometimes the negatives outweigh the positives.

Wearethehearts

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Re: New benefit ??
« Reply #14 on: 15-10-18, 06:59PM »
It's a trial in some stores and dc just being announced

barafear

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Re: New benefit ??
« Reply #15 on: 15-10-18, 07:16PM »
No wonder it didn't recognise me when I tried to apply!!!
It does seem like they have "some" companies on board already - so can't be all bad.
When I was "applying" it stated repayments would be taken by DD from my bank account rather than direct from my salary.

I read some testimonials from "Hackney Borough Council" - all seemed very positive but then testimonials always are.

It's difficult to understand it really - clearly there's still a credit check done - so I'm not entirely sure what the "benefit" is - there was something I read somewhere that suggested that the "APR" you were given would be "lower than if you accessed it via the "market" and that your acceptance rate is higher - but these are all semantics.

Obviously it is seemingly aimed at people with a slight worse than average credit record - but I cannot really see anyone with a bad credit record being accepted - as it appears even their highest APR of 19.9% would be a blessing for people in this category (various "payday-type" lenders would charge APRs in excess of 150% for 12 month loans).

They do state that your APR will be a typical 14.9% but I think I saw a low rate of 9.9%? Or maybe lower?

Max loan was 15% of your salary.

I think this is your actual contracted salary. It asked for your total salary (excluding overtime and bonuses). And then it asked for "average amount earned per year in overtime and bonuses".

So, I'm guessing the following scenario might apply:

Someone contracted to 30 hours per week - let's say no Sundays.
30x£8.40 = £252 per week. Annual Salary = approx £12,600
Max Loan = £1,890

But that person might regularly work an extra 5-15 hours per week - and some of that might be at 1.25x

So let's average it out to 10 hours @ £8.40 = £84 x 47 weeks = £3,948 (assume 5 weeks of holiday!!)

So - Salary Finance will limit the person to a loan of £1890. But might also look at the additional £4,000 (roughly) of overtime they earn per year. All these figures are checked with Tesco HR.

So that might help them to get accepted if it was borderline otherwise.

With a lot of mainstream lenders, it might be that overtime/bonuses would not be taken into the calculation - so limiting their chances of acceptance.

To be fair, there are also "Savings Options" available - but the interest paid on savings is a little bit difficult to find (suggesting it's close to 0%!!!)

In fact, I did find an answer which stated (something along the lines of) : "it's good to get in the habit of saving, rather than needing to know exactly the rate of interest payable on your savings"

Clearly Tesco already have SAYE to encourage their employees to save. Can't see many wanting to save with Salary Finance.

Thanks for the info Wearethehearts.

specialgravy

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Re: New benefit ??
« Reply #16 on: 15-10-18, 10:21PM »
surely a better way of helping employees manage their finances would be to actually pay a decent wage? if you cant see the problem  with an employer profiting of the fact it pays its workforce badly then you should get your head out of the sand! this company already costs the taxpayer millions by refusing to offer full time contracts and leaving the state to make up the difference, now they want to see us indebted to them? absolutely no morals at all.

T.C.1

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Re: New benefit ??
« Reply #17 on: 16-10-18, 08:56AM »
Yet again USDAW top people should hold there heads in shame!!! After the absolute stitch up of our last so called pay rise which colleagues are still so bitter about comes a pay day lender to top up your wages!!!  Colleagues are in enough debt as it is and that's not by over spending that's just by making ends meet so to ' put it on the slate' and make it so easy for colleagues is a disgrace.  It's going to be a trap that some colleagues will never get out of, then what if they are made redundant the loan company with have their hands on it if the colleague gets a pay out!!!  USDAW for god sake fight for a living wage with no strings and claw back our wages???

Wearethehearts

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Re: New benefit ??
« Reply #18 on: 16-10-18, 10:20AM »
Usdaw paid staff I don't think have anyone to answer to , I see or hear of no remedial action against those not performing , it's reps who sit on these negotiations are only there through a voting process that is like a school vote ( based on popularity) they should be vetted for if they are upto the task as most I know are not. Then there is Pauline folkes a person who I admit has an impossible job trying to negotiate with folk there as a Branco away from work supposedly supporting her , no wonder Tesco gets its own way usdaw in its poor management have set up a system that allows Tesco to bulldoze through whatever they want

Nomad

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Re: New benefit ??
« Reply #19 on: 16-10-18, 10:29AM »
Nobody has to use the 'new benefit'.

@Wearethehearts, we already have topics on the merits or not of USDAW and its officials.
Nomad ( Forum Admin )
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barafear

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Re: New benefit ??
« Reply #20 on: 16-10-18, 11:07AM »
I know it's not perfect - but the new benefit (or Salary Finance's business model/PR) does seem to suggest that it is workers with current outstanding debts who most seem to benefit - almost like a switching service - instead of paying X, Y and Z 35% interest, consolidate to us and pay 20%.
Hence save 15%.

Not specifically encouraging new debt......although I understand it's a fine line........

Duracell

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Re: New benefit ??
« Reply #21 on: 16-10-18, 11:28AM »
Duracell
Just done a quick search for loans and they vary between 49.9%and 1333% so 20% is very competitive even compared to bank loan rates which run between 5 and 10%.

I take on board you saying that direct debit from your wage reduces the risk from your lender but the large majority of our staff are part time and rely on overtime to supplement their income. All it needs is an overtime ban for a couple of months or 1 weeks sick and this could lead to short term hardship.

Anything that stops robbing loan sharks giving loan out at exhorbitant rates can only be good

I understand the points you make, I don’t disagree the principle and Advertised company ideology can have serious benefits, I just think that they can do much better % wise.

I understand barafear has gone through the process, so if repayments are not taken at source then I understand I appreciate 19.9%, and agree it is a better starting point for rebuilding financial stability where past history may deter low interest lenders.
I wonder though if barafear only had a DD option because T are not fully established with them, if there was a repayments taken direct at source through PAYE system would that create a better % rate, if not.. why not? As that option is the most sure type of lending.

On the whole the information barafear has realised does seem positive. Not necessarily the best it can be but much better than some.  T like sitting in the middle so I suspect the pilot will be short.

Had a bit of a laugh though... so T are driving down terms which lowers overall value so staff struggle more and more,  a financial institution recognises a business opportunity,  as noble as their cause advocates they are a business lending primarily to make money, helping people out of debt is a conciquence of the money that they are making without that profit there would be no help.
But USDAW are to blame for the people needing it and why staff struggle.  ;D ;D ;D
My Opinion is exactly that, Mine.  Based on my view of what I know , see and what I would do.
"Being a rep doesn't make a person right anymore than not being a rep makes a person wrong " 

Duracell.

barafear

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Re: New benefit ??
« Reply #22 on: 16-10-18, 12:28PM »
I believe my "mock application" suggested DD because they couldn't find my employee number on their system (as I don't work at one of the trail stores/DCs). I do think, reading about the company, that they do generally use payroll deductions for the payments.
I understand the general sentiment about the mockery of Tesco suppressing our pay and conditions and then possibly joining up with a company like this - but according to their website, the company already work with several organisations who it might be argued pay their workers a "fair wage" (BT being one I remember, and Metro Bank)

RubyRed

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Re: New benefit ??
« Reply #23 on: 16-10-18, 09:21PM »
I worked for a company that offered the same deal with loans. Many people found it useful. I guess it is like all benefits it’s not for everyone.

just curious

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Re: New benefit ??
« Reply #24 on: 16-10-18, 11:10PM »
Does not matter who the company is , there must be something in it for Tosco , it will not be a benefit - it will be a money generating scheme / scam for the company ? .

Do they get commission on the number of applicants that apply - value of the loans issued ?.
A fee for payroll administration cost for handling the monthly cost of the loan ?.
The  possibility of selling your personal details on to a third party for a price - generating money again £££ ?.
Tosco do nothing for free - there has to be a catch or something in it for them or they would not do it ?.
Question why there doing it ? , Is it  to get some form of commission on approved sales or commission on re selling personnel data etc  ?.  :-X :-X .