Help! Bank wanting money question

Serendipity_phoenix · 20 February 2008 at 5:42AM

Hello:hello:
Please be nice i am a newbie:o

This isn't so much about bank charges as bank wanting money paid in error back, my husband and i are really struggling and i am hoping to write about all our money problems on the forum, but this is the latest. I do hope i have put it in the right place:embarasse

Back in September 2006, right about the time we were being made homeless, we received a letter from Halifax saying in march 2006 we had been paid £309 to much by my husbands work, we didn't think much about it for long, as there were more important thing (like trying to find a home for us and our 6 yr old son)
Didn't think more of it till last week, we got a letter from natwest this time, saying they were the bank that had paid it in error and they wanted the money back, a week later we got another letter from them now saying as we hadn't got back to them, they wanted a cheque in the next seven days or they would be taking further action! The cheque they wanted though, was not just the £309 but had gone up to £1094!!!_pale_

Now we just don't have two pennies to rub together at the moment, plus already have enough stress on our plate for several lifetimes of heart-attacks,

but it gets even more complicated when you take into the circumstances at the time of the overpayment....:wall:

My husband worked for "company A", and went off sick, he had the 28? weeks on ssp and then went on to incapacity, but just before the ssp ended "company A" went bust, and was bought out by "company B", keeping the employees they had, all the workers got new contracts to sign, or were made redundant without pay, apart from my husband whom they forgot about, after a lot of phoning about, he was told, that he was not employed by "company B" as he had not signed a contract and he was not redundant as they didn't even know about him, "company B" was not told he even existed, he was not employed by "company A" either as that didn't exist anymore,
"Company A" paid staff by cheque but he was paid the once by CHAPS from "company B", that was the finale ssp payment for and on behalf of "company A",
but when setting up this new payment system, everyone got paid more than they should,
The thing is do natwest have a right to ask for this back, after all this time?
He technically wasn't employed by either of the companies, as the one he signed a contract with went bust, and company B refused to acknowledge his existants, down to the fact we are still owed £80.00 ssp! and he never got his p45, only a letter trying to explain the mess up to our benefits office that got all in a tizz wass about it.:rolleyes2
HELP!:confused:

PaulLuke · 20 February 2008 at 7:10AM

You're right that's a failry complex situation. However, for what it's worth my two tuppence worth.

When company A ceased trading your husband was redundant unless the employees were 'tupe'd across to the new company, irrespective of any issues around signing a new contract. If there was a Tupe transfer then, subject to a couple of exceptions (most noticeably around pensions) you automatically transfer under your old T's& C's of employment. You needto speak to a specialist advice service (try ACAS) or the CAB about this matter because, depending upon his length of service, you may be able to get redundacy pay (although I believe there are some fairly strict time limits on bringing a claim which can only be waived in exceptional circumstances).

As regards the bank who actually made the overpayment? If it was company B then the money is owed to company B, not to the bank and comany B should be asking for the money back. If the bank made the payment by error then yes you probably do need to pay the money back but I'm not convinced about the interest charges (without knowing the full story). Have you spoken to the bank and asked them to confirm (a) who the money was paid by and is therfore owed to and (b) if to them how they justify that level of charge. Whatever happens, you need to deal with this now as it will be less stressful than leaving it until some form of debt recovery action has been commenced.

nickmack · 20 February 2008 at 12:35PM

Hi, Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere(please see this rule) so this post/thread has been moved to another board, where it should get more replies. If you have any questions about this policy please email [EMAIL="abuse@moneysavingexpert.com"]abuse@moneysavingexpert.com[/EMAIL].

Digitalsgirl_Hubby · 21 February 2008 at 9:34AM

Nickmack..... Where abouts has it been moved to? im also a newbie

*edit*

Oops, this would be where its been moved to i would guess????

maryotuam · 21 February 2008 at 9:47AM

You definitely need advice on this one.
I'd try and get an urgent appointment with the CAB.
Check your House contents insurance in case you have access to free legal advice through them.
Insist on speaking to someone senior at the bank because they have a moral duty to be reasonable and it is impossible for you to pay all this money now. If it ends up in court the judge would expect them to be reasonable.
Your husband had a statutary right to minimum redundancy payment. I hope you are not out of time.
Any chance of Legal Aid? Ring a solicitor to find out.
I hope someone who kmows more than me comes along to help you.
Good Luck

Help! Bank wanting money question

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