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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Legal
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Experience:  Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.
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can an employer turn over a relocation agreement to a collection

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can an employer turn over a relocation agreement to a collection agency without having a promissory note signed by the former employee ? state of indiana
Thank you for your question. Please permit me to assist you with your concerns.

That very much depends. Did the employee sign off on the agreement and did the employee obtain the benefits from the agreement?
Customer: replied 2 years ago.

yes I did receive the benefit and did sign the agreement only but i have been told that if there is no promissory note also signed they cannot turn over to a collection agency.


Thank you for your follow-up, Pete.


My apologies but whomever told you that a debt cannot be turned over to collections if there is no promissory note is very much mistaken. ANY debt, if the debt can be formally proven to take place, can be pursued for collections. A good example is credit card debt--there is no promissory note, but if you fall behind and not make the payments, the credit holder can file suit against you for collections. If this was something that you received as a benefit, and you also signed the agreement, the signature acts as acceptance of terms and also as a receipt for understanding the terms of the agreement. The employer can most definitely seek repayment either personally, via collections, or via the courts.



Hope that clarifies.

Customer: replied 2 years ago.

In my case I am willing to pay back however the younger employees which also resigned were only asked to pay the after tax amount where I am being asked to pay the full before tax amount. I am 57 yrs old .



Thank you for your follow-up. If this was a voluntary resignation on your part, and not forced in any way, the employer can hold you to the terms of the agreement. It would not be considered a violation under the ADEA (Age Discrimination in Employment Act) since you are simply being held to what you already agreed to. In either instance you can still offer to negotiate and potentially threaten an ADEA action if you believe that is what is causing their position to be utilized against you. I must be honest and state that at least nothing so far makes me suspect that is the case, as this debt against you appears to be quite valid.


Good luck.

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