Return of overpaid wages
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mrsbunny1979
Posts: 19 Forumite
I left one organisation on 4th September and started working at another on 5th September. The first organisation did not receive my notification of change form until the end of September (my manager did not send it in for some reason) so I was paid for the whole of September by mistake.
I knew it had happened, I put the over payment in my ISA so I didn't spend it and informed my previous employer.
I received a letter today asking for the money back.
Now, I have the money, it won't cause me financial hardship to pay it back (because I had planned for this happening) BUT....
I begrudge giving it back in a lump sum because it was their mistake and I quite like having it in my ISA earning me interest!!!
My question is, am I within my rights to ask for a payment plan, or do I have to just pay it back?
I am saving for a deposit for a house so am liking the extra interest it is generating in my ISA!!!
I knew it had happened, I put the over payment in my ISA so I didn't spend it and informed my previous employer.
I received a letter today asking for the money back.
Now, I have the money, it won't cause me financial hardship to pay it back (because I had planned for this happening) BUT....
I begrudge giving it back in a lump sum because it was their mistake and I quite like having it in my ISA earning me interest!!!
My question is, am I within my rights to ask for a payment plan, or do I have to just pay it back?
I am saving for a deposit for a house so am liking the extra interest it is generating in my ISA!!!
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Comments
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Just pay it back. You know you owe it, you have the money, it's the simplest and fairest thing. Keeping it to earn a tiny amount of interest isn't money saving, it's just shady. In my opinion.0
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Just pay it back, once it's paid back that's it you can move on from it.0
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Assuming:mrsbunny1979 wrote: »I am saving for a deposit for a house so am liking the extra interest it is generating in my ISA!!!
* £1,000 overpayment was made
* 12 month repayment period is agreed
* 1% interest rate on the ISA
You'll make the princely sum of £5 in additional interest.0 -
You begrudge paying it back in a lump sum when you have that lump sum?! You knew the instant you received it that you weren't entitled to it and could have returned it on the spot. Come on now. It ended up in your ISA because you sort of hoped they wouldn't notice, didn't it?
Unbelievable....0 -
Come on now. It ended up in your ISA because you sort of hoped they wouldn't notice, didn't it?
Unbelievable....
The OP states that they informed their previous employer so there is no basis to your claim that they hoped it wouldn't be noticed. They should repay the whole amount immediately irrespective of their personal feelings about the situation.0 -
If they owed you the money, you would want it straight away in a lump sum. Be fair and pay it back to them in a lump sum as soon as you can.0
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You should pay it back straight away. But make sure you do it by cheque or electronic transfer, so you have proof you have repaid it. And what about your tax figures? You need to make sure that comes off your income, including the amount of tax they paid as well.0
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Why did you even put it in your head that you could repay it in installments? You knew from the start that this money was never meant to come to you, such mistakes happened, probably because your boss send the form just one day pass the closing time for changes.
I wonder what your message would have been if the opposite happened 'I left my old job and started a new one, but my new job made a mistake and didn't pay me for the 26 days I worked there when they said I would. I pointed it out to them, they agreed to their mistake, but have said that they will pay me by installment of £10 a month until the foreseeable future. When I asked why, they said that it would earn them £5 interest each month so worth doing. They are reasonable aren't they?'0 -
Why did you even put it in your head that you could repay it in installments? You knew from the start that this money was never meant to come to you, such mistakes happened, probably because your boss send the form just one day pass the closing time for changes.
I wonder what your message would have been if the opposite happened 'I left my old job and started a new one, but my new job made a mistake and didn't pay me for the 26 days I worked there when they said I would. I pointed it out to them, they agreed to their mistake, but have said that they will pay me by installment of £10 a month until the foreseeable future. When I asked why, they said that it would earn them £5 interest each month so worth doing. They are reasonable aren't they?'
Lovely :rotfl:0 -
Contrary to the comments on here, it has in fact been held to be reasonable to re-pay overpayments in instalments.
I agree morally that I would re-pay asap.
But you don't have to do this if it causes hardship.
In this specific instance, as it took the company a month to process your resignation, I think repaying it in a month's time would be reasonable. But as others have suggested with such low rates (2.25% pa is the best I found), I doubt you'll gain massively from your former employer's error.Please be polite to OPs and remember this is a site for Claimants and Appellants to seek redress against their bank, ex-boss or retailer. If they wanted morality or the view of the IoD or Bank they'd ask them.0
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