Overpaid by employer, now left company.

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I was overpaid in Aug 08 (9 months ago) and recieved letter today asking for money back, £950.

It was the same month I left the company and thought it was a final salary/payment in lieu or something at the time.

Taking into account the error was their fault and was such a long time ago, do I have to pay it back?

Im prepared to dig in as I don't have much to lose, where do I stand legally?

Any help greatly appreciated.
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Comments

  • SomeBozo
    SomeBozo Posts: 1,195 Forumite
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    Taking into account the error was their fault and was such a long time ago, do I have to pay it back?

    Yes, you have to pay it back.
    Im prepared to dig in as I don't have much to lose, where do I stand legally?

    They will seek it from you in full. Or they will ask you for it back as part of a payment plan.

    Then they might take you to court to enforce it.

    Bozo
  • Pee
    Pee Posts: 3,826 Forumite
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    Look into this further. I think if you are paid in error and you have spent it, the company cannot recover it.
  • Pee
    Pee Posts: 3,826 Forumite
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    ACAS might be able to confirm this.
  • -BA-
    -BA- Posts: 377 Forumite
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    Check your payslips to make sure and if they are correct then pay the money back. It isn't yours whether you spent it or not. Indeed you could offer to pay back in installments and they will possibly accept but you have no legal standing.
  • SomeBozo
    SomeBozo Posts: 1,195 Forumite
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    Pee wrote: »
    Look into this further. I think if you are paid in error and you have spent it, the company cannot recover it.

    What utter nonsense!

    And the comment about ACAS?!?

    Does make you wonder about the quality of advice on here doesn't it?

    If the company had underpaid the OP, what advice would you have had for the OP?

    Would nine months make any difference (limitations BTW is 7 years)?

    I think the advice would be for the OP to write and tell them he had been underpaid. Then he would be told to set a deadline for reayment, then he would be told to file via the small claims process.

    Which is exactly the advice he has had in reverse!

    Bozo
  • zorber
    zorber Posts: 1,107 Forumite
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    yes they can request it back. though if you can only afford to pay back a small amount each month then they may have to accept a payment plan.
    "Save the cheerleader - Save the world"
  • MadDogWoman_2
    MadDogWoman_2 Posts: 2,376 Forumite
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    Hi Chris,

    I was overpaid by a previous employer when I left, I repaid the amount I knew was incorrect (a full months wage), then the remainder I repaid in installments.

    I contacted them about the error! Otherwise they would have continued to pay me, my ex-boss had signed a document confirming my leaving!

    MDW
    Proud to be dealing with my debts
    DD Katie born April 2007!
    3 years 9 months and proud of it
    dreams do come true (eventually!)

  • chris1234x
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    thankyou all for the advice, thought Id had good bit of fortune but looks like I'll have to pay it back and pass Go and not collect my £200. Don't want to go to jail :(
  • Pssst
    Pssst Posts: 4,803 Forumite
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    Without reaching for my Blackstones Police manual of criminal law,i seem to recall something about retaining a credit to which you are not entitled?
  • Uncertain
    Uncertain Posts: 3,901 Forumite
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    There is no doubt that you will have to pay it back.

    However, there is no reason to make it easy for them (if it was their error).

    I would take the initiative and write to tham saying you intend to set up a standing order for a reasonable amount per month (10% ?) and more or less impose this deal on them.

    That way, if they do not accept and try to get "heavy" they will not get much sympathy for a County Court as you are being reasonable.
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