Money paid to me in error

magical28

I'm currently on a DMP and before I started it I set up a brand new bank account not related to any of my creditors.

Now the company I work for have paid some money to me in error and have asked for the money back. The problem is, they have paid it into my old bank account which has an overdraft and is on the DMP and I can't seem to transfer the money back out.

Am I within my right to ask Abbey for this money back, even though I am still in the overdraft? If not, then how will this affect my DMP if other creditors see I have (in theory) paid more money off this one than theirs?

Tixy

Can your employers recall the transaction at all?

You can certainly ask for the money back, but they don't have to give it to you.
If all else fails and you cannot get it back I would think it shouldn't actually affect whether your other creditors accept your DMP as this was an accident and you did not intentionally give abbey preferential treatment.

magical28

I don't think you can recall a transaction once it has it the recipients account unfotuantely.

What a stupid mess!

Tixy

It depends on how it was paid I think - I've definitely seen a case where an employer managed to claim back some wages that had been paid into the wrong account (can't recall what sort of transaction it was though).

DarkConvict

I would go with telling the employer that you are not able to take money out of that account yourself as you no longer have access to withdraw funds, and they will have to talk to the bank to recall the transaction themselves. Neither do you have sufficient savings in another account in order to pay it back.