Is my debt partially statute barred?

Onetime_2

I was wondering if those in the know could comment on whether my case is partially statute barred?

I have been asked to pay back an allowance from an employer I am no longer working for. This is from the period 2000 to 2008. This amounts to about £5000. I was in a higher band of this allowance than I should have been. The first contact about this issue I had since I left was a couple of weeks ago by letter from their pay office. I certainly was on the higher band I have checked this. I have yet to reply to them as I understand this effects the statute barred position.

As I have not been contacted about this mater before can I say that it is statute barred prior to 2004? So they can only ask me to reclaim overpaid money up to 2004?

I have seen the ‘Loan Company’ letters on this forum but they don’t quite fit my case. I could write back to them simply explaining that I think they should recalculate the figure owed as being from 2000 to 2004 as they are a pay office not a loan company.

Also what is a situation regarding what would be a reasonable amount to pay back and over what period of time?

Any ideas people?

DVardysShadow

Contacting the creditor and asking for a justification DOES NOT affect the Statute Barred position. Paying towards a debt or otherwise acknowledging [= admitting] it does affect the position.

If you write back and and say you think that they should recalculate from 2004, that is however getting close to admitting it.

Now is the time to think through your position before acting. Now, what do you think? Were you wrongly paid this amount or are they essentially correct that the money was not owe to you? Please answer this question and we can go from there with the appropriate advice.

Tixy

I do not think you could argue that it is partially statute barred. For example if you have a credit card and ran up £2k 10 years ago and only paid the minimum and then ran up an extra £1k 4years ago and stopped paying, you would owe the whole debt not just that incurred later.

Rather than consider the SB route I would look at whose fault it was you were paid this extra allowance for so many years. Was it the employers error or yours? Was this a taxable allowance and if so and you have paid tax on this error how much of it can you reclaim.

As to what is a reasonable time scale to pay back I would say you need to pay it back over a period you can afford.

DVardysShadow

Tixy wrote: »

I do not think you could argue that it is partially statute barred. For example if you have a credit card and ran up £2k 10 years ago and only paid the minimum and then ran up an extra £1k 4years ago and stopped paying, you would owe the whole debt not just that incurred later.

I would disagree on this. The credit card example is not relevant - we are not talking about a loan here, so the OP is not paying money back. There is no account in place by means of which an overall debt remains acknowledged.

But OP needs to come back and advise as to whether they consider the money was wrongly or rightly paid to them.

DarkConvict

I agree a utility company on here only today has written off a debt old than 6 years but still is asking for the remainder 2004 to 2010.

I do would agree that anything paid before 2004 would be statute barred, contact a local free solicitor.

handyman123_2

Hi Onetime, I see the regulars (I call them the Cavalry) have allready found you. What occurs to me and it isnt anything to do with SB, and as a one time company car and expence account holder, is the amount they are looking for Gross or Net of tax. I agree with Darkconvict contact a solicitor presumably one that does employment law. I allso asume that as they go up to 2008 that is when you left the company?

As an employer in a previous life, if I had overpaid someone I would be ashamed to ask for it back after all this time had passed. I will have to look on the benefits forum, I recall seeing something about benefits payments only going back 4 rears before being unrecoverable. (could be wrong but something niggles) If I can find anything out I will post on here.

Best wishes handyman123.

DarkConvict

More ideas, ring ACAS they should be able ot provide guidance - http://www.acas.org.uk/index.aspx?articleid=1461

billybraggtastic

I too would suggest you seek advice on Employment Law.

I am certainly no expert but is there not some protection for the employee whereby they receive a benefit over a period of time it becomes an implied term of their contract i.e. you have received the benefit of the higher allowance for such a lengthy period unchecked - through no fault of your own - and have looked upon it as your regular entitlement.

Onetime_2

Thank you for your help. The Employer was the Civil Service and I finished there in 2008. The allowance was Inner London Weighting, I do not know if that is taxed or not. They say I should have been on Intermediate London Weighting after I moved in 2000. Checking the other day we only fell half a mile outside the inner London 5 mile zone, I do not think there is any leeway, you are either in the zone or outside it. It is ten years ago, I don’t know if I indicated that I was going to a Inner London location or if this was decided for me.

I have gone to CAB who mentioned statute barred and gave me a couple of handouts but I do not think I qualify for free advice. So I am trying to consider the best way forward.

Tixy

I would suggest either talking to acas (as suggested above) or possibly if you don't have much luck with them national debtline (who offer free advice) - and who would at least be able to advise on whether each year can be treated seperately and therefore some could be statute barred.

GeorgeUK

Acas or possibly nationaldebtline too may be able to advise.

I was under the impression that any overpayment in wages HAD to be repaid and was not subject to a time limit, but it's been ages since i've looked at this.