Compushare problem...please help

Hi all,

I would appreciate any help anyone can give me.

Recently my company HSBC Insurance was bought out and as part of the deal, we were allowed to buy shares against our share save scheme at the agreed figures.

I know nothing about shares but was pleased to receive 557 shares in the form of a Certificate which I promptly took to my bank and sold. The money has now gone paying off family loans etc.

Yesterday, I received a letter from Compushare advising me that they had an admin error and they gave me too many shares. Around 300 and have asked for the proceed from the sale to be returned to them.

I do not have this money as I wasn't aware of the error.

Can Compushare request this money back as it was their error? It is putting me in an impossible situation and I don't know what to do.

Can I tell them I'm not giving it back, it was their error or are they entitled to the money?!

Any advice please? Many thanks

Comments

  • ESKIMO
    ESKIMO Posts: 254 Forumite
    Wow lucky you.

    In a nutshell if you have received them in an 'error' that has subsequently been spotted they have a right to rectify it.

    Before you simply 'dish the dosh' above all else ASK THEM TO PROVE IT! Ask for evidence of their 'clinical error'.

    You had received the shares of 'X' amount in good faith.

    If your acceptance of the shares was on the basis of being in receipt of the 557 shares then it is their c**k-up and their loss! Not yours!

    If they have suddenly realised they have made a 'BIG mistake' by the sounds of it then they will at least try to claw it back, call it disaster containment/reduction (whatever you want to call it.)

    This is their way of saying "woopsy daisey, any chance you can give us back a fiver?"

    Simple answer.

    'Ignor' all communication from them - verbal and written. It's upto them to prove that you received them under false pretences.

    It's simply not adequate to say 'we have made a clinical error and we want our money back.'

    Let them prove it. Don't do anything untill they have or they can.
    Young At Heart and Ever The Optimist: "You can't sell ice to Eskimo."

    Waste Not, Want Not. - Reduce. Reuse. Recycle.
  • Reaper
    Reaper Posts: 7,277
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    edited 2 August 2010 at 10:08PM
    ESKIMO wrote: »
    Ask for evidence of their 'clinical error'.
    I think you mean clerical error, unless doctors were involved!
    ESKIMO wrote: »
    'Ignor' all communication from them - verbal and written. It's upto them to prove that you received them under false pretences.
    Presumably you still work there so I would go for a less confrontational approach. The law is not entirely clear on this and the examples I am aware of refer more to banks than shares.

    If you knowingly spend money given to you in error then you haven't got a leg to stand on.

    But if you acted in good faith then it is not so clear cut. An example here where a customer double checked with their bank that it was correct before spending the money resulted in the ombudsman declaring the customer did not have to return the money. However this is rare and most decisions go in favour of the bank.

    I would start by simply telling them the money is gone and you feel as it is their mistake they should write it off regardless of the legalities.

    If they insist then at the very least they should accept gradual interest free weekly/monthly payments from your salary over a lengthy period of time. At most you could take it to arbitration or the courts, though be aware your case is not strong.

    EDIT: Another short article mentioning bank errors when you acted in good faith here, though it is not a bank in your case I am guessing the principles are the same.
  • ESKIMO
    ESKIMO Posts: 254 Forumite
    Clerical error. - I stand corrected.

    Confrontation is not necessary. Just keep it schtum and ignor all communication from them ie 'gone fishing'.

    As previously stated, allow them to prove it. They will need to demonstrate having carried out a thorough internal investigation into this matter.

    The person(s) responsible will no doubt face discplinary action unles their 'matrix' has received a 'cold' all of a sudden.

    When anything goes wrong, technology is usually to blame.
    Young At Heart and Ever The Optimist: "You can't sell ice to Eskimo."

    Waste Not, Want Not. - Reduce. Reuse. Recycle.
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