Returned "overpayment"

Andy9164_2

A long story but basically we recently settled a secure loan after restructuring our finance and as the loan was secured on the house our mortgage company said they needed to settle it as we were taking the charge off property. Fine no problem.

We received a settlement figure from the lenders which was duly paid in full. A week later we received a letter saying an overpayment of £3000 had been made and this would be transferred into our bank account. Immediately I questioned this by phone with the loan company as it did seem right that such a large overpayment would be made. I was told it was correct, the account was clear and we would have the money in 2 -3 days. When the money arrived in my account, still being unsure I left it untouched for a period of 30 days just in case there were any repurcussions. After 30 days, no word from the loan company I assumed I must be wrong, they must be right and used approximately 50% of the money to carry out some home improvements.

Last week, guess what happens. The loan copmpany decide an error has been made and that we now owe them the £3000.

Does anybody know where I stand on this.

I agree that "technically" I owe them the money but it was their error, I questioned it immediately and was told it was correct, I have acted in good faith by contacting them immediately and also by "holding" the money for a period of 30 days . Had I not had this unexpected money then the home improvements would have waited until next year.

Any advice would be appreciated.

Thanks

Xbigman

Legally I think you do owe the money.

First. Tell them you queried this refund and was assured it was correct and you do not consider that you owe it to them, then ask them to write it off as you have spent it. This probably won't succeed but is worth a go.

Do you have a letter from them saying the account was cleared? If you do you can argue that they have sent you 3000 without a credit agreement and they are not entitled to charge you interest or any penalty fees. Tell them you can get 1500 from a relative as full and final settlement (you still have half of it you said).

If they don't agree then tell them you can pay some low but not silly amount. £50 per month is a reasonable offer but reiterate you do not consider any interest or charges to be legally enforcable.

I think its pretty much finding just what they will accept.
Regards



X

Stonk

I'm shocked how little conscience you two have.

The OP knew it was an error, and made some (but not much) attempt to put it right. Then went off and spent the money he knew not to be his own.

If this was me (not that I'd have got myself in this position), then I would accept I have been caught out and pay it back now without a fuss. OK, maybe make them wait 28 days before putting a cheque in the post. But it's disgraceful to even think about trying what XBigman is suggesting.

You don't just "technically" owe them the money. You do owe it.

Freddie_Snowbits

Technically, tell them that it was their error (if this is true) and you will repay at x per week for y weeks. As longs as that is reasonable, they would not object!