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  • FIRST POST
    • mrsbunny1979
    • By mrsbunny1979 10th Oct 16, 9:43 PM
    • 18Posts
    • 45Thanks
    mrsbunny1979
    Return of overpaid wages
    • #1
    • 10th Oct 16, 9:43 PM
    Return of overpaid wages 10th Oct 16 at 9:43 PM
    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!!!
Page 1
    • ElefantEd
    • By ElefantEd 10th Oct 16, 10:03 PM
    • 477 Posts
    • 875 Thanks
    ElefantEd
    • #2
    • 10th Oct 16, 10:03 PM
    • #2
    • 10th Oct 16, 10:03 PM
    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.
    • DCFC79
    • By DCFC79 10th Oct 16, 10:32 PM
    • 27,761 Posts
    • 17,530 Thanks
    DCFC79
    • #3
    • 10th Oct 16, 10:32 PM
    • #3
    • 10th Oct 16, 10:32 PM
    Just pay it back, once it's paid back that's it you can move on from it.
    Je Suis Charlie
    • YorkshireBoy
    • By YorkshireBoy 10th Oct 16, 11:25 PM
    • 28,320 Posts
    • 16,128 Thanks
    YorkshireBoy
    • #4
    • 10th Oct 16, 11:25 PM
    • #4
    • 10th Oct 16, 11:25 PM
    I am saving for a deposit for a house so am liking the extra interest it is generating in my ISA!!!
    Originally posted by mrsbunny1979
    Assuming:

    * £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.
    • sangie595
    • By sangie595 11th Oct 16, 7:26 AM
    • 2,735 Posts
    • 4,277 Thanks
    sangie595
    • #5
    • 11th Oct 16, 7:26 AM
    • #5
    • 11th Oct 16, 7:26 AM
    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....
    • TELLIT01
    • By TELLIT01 11th Oct 16, 8:14 AM
    • 2,645 Posts
    • 2,551 Thanks
    TELLIT01
    • #6
    • 11th Oct 16, 8:14 AM
    • #6
    • 11th Oct 16, 8:14 AM
    Come on now. It ended up in your ISA because you sort of hoped they wouldn't notice, didn't it?

    Unbelievable....
    Originally posted by sangie595
    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.
    • kingfisherblue
    • By kingfisherblue 11th Oct 16, 1:19 PM
    • 6,815 Posts
    • 14,649 Thanks
    kingfisherblue
    • #7
    • 11th Oct 16, 1:19 PM
    • #7
    • 11th Oct 16, 1:19 PM
    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.
    • dktreesea
    • By dktreesea 11th Oct 16, 1:23 PM
    • 5,314 Posts
    • 8,024 Thanks
    dktreesea
    • #8
    • 11th Oct 16, 1:23 PM
    • #8
    • 11th Oct 16, 1:23 PM
    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.
    • FBaby
    • By FBaby 11th Oct 16, 3:24 PM
    • 14,334 Posts
    • 36,490 Thanks
    FBaby
    • #9
    • 11th Oct 16, 3:24 PM
    • #9
    • 11th Oct 16, 3:24 PM
    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?'
    • sangie595
    • By sangie595 11th Oct 16, 5:11 PM
    • 2,735 Posts
    • 4,277 Thanks
    sangie595
    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?'
    Originally posted by FBaby
    Lovely
    • Mersey
    • By Mersey 11th Oct 16, 6:04 PM
    • 1,246 Posts
    • 566 Thanks
    Mersey
    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.
    Last edited by Mersey; 11-10-2016 at 6:08 PM.
    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.
    • Kynthia
    • By Kynthia 11th Oct 16, 7:28 PM
    • 4,701 Posts
    • 6,715 Thanks
    Kynthia
    Repayments are fine if you couldn't have known you were being overpaid and had spent the money or if you were overpaid over time such as getting an allowance you weren't entitled to in your salary payment fir a tear or two. However a one off lump sum that you were aware of from the start should be able to be repaid in a lump sum and would be difficult to argue otherwise.
    Don't listen to me, I'm no expert!
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