QVC Investigates 401(k) Loans

The QVC home shopping network turned away workers at its Rocky Mount, North Carolina, distribution center as part of a probe into whether 401(k) hardship loans they’ve received were legitimate.

Raleigh television station WRAL reported that dozens of workers were blocked today as they reported for work. A company spokeswoman said the employees’ 401(k) loans were being scrutinized for possible irregularities. She declined to say how many workers were involved.

The workers told WRAL News they had been put on unpaid leave.

According to the news report, employees received letters instructing them to schedule a meeting with a company loss prevention specialist and HR representative to prove their loans, already paid by Fidelity Investments, were legitimate. “Failure to set up a meeting will indicate your decision to voluntarily resign from the company,” the letter stated.

Workers indicated they had been forced to tap into their retirement plans because the company has imposed a salary freeze, cut back on overtime and hours, and started paying employees bi-weekly, instead of weekly.