Not my mistake - duplicate refund - liable or not

Eris

i recently purchased a vehicle insurance policy with a company then canceled the policy within the given period, due to finding a better, cheaper one elsewhere. i was told the company in question would refund the amount minus £25 admin fee to my account. The amount £175 was refunded. just before Christmas! Unknown to me, the company made the mistake - duplicating the refund into my bank account 2 x £175 payments.

i wasn't aware of this until end of January when i received a letter from them demanding the second amount back from me. i spent the money unknowingly. However i have since been informed of their mistake now they are asking for it back, i now do not have the money, now. Want to know what are my rights. am i liable please can you help answer this dilemma. :think:

Many thanks

moonbeam2007

Eris wrote: »

i recently purchased a vehicle insurance policy with a company then canceled the policy within the given period, due to finding a better, cheaper one elsewhere. i was told the company in question would refund the amount minus £25 admin fee to my account. The amount £175 was refunded. just before Christmas! Unknown to me, the company made the mistake - duplicating the refund into my bank account 2 x £175 payments.

i wasn't aware of this until end of January when i received a letter from them demanding the second amount back from me. i spent the money unknowingly. However i have since been informed of their mistake now they are asking for it back, i now do not have the money, now. Want to know what are my rights. am i liable please can you help answer this dilemma. :think:

Many thanks

I think it depends on how they paid it back to you. If they can prove this then yes I'm sure they could get it back. [Don't hold me to that]

Was it a big company? off internet? ebay?

moonbeam2007

Write to them and explain it was their mistake but your willing to pay back monthly payments, say regarding your financial circumstances your not able to refund this in whole and as it was a payment you hadn't expected over Christmas it was spent.

molerat

They made a mistake and refunded money that you are not entitled to and they can legally ask for it back through the courts if necessary.

Clive_Woody

Eris wrote: »

i recently purchased a vehicle insurance policy with a company then canceled the policy within the given period, due to finding a better, cheaper one elsewhere. i was told the company in question would refund the amount minus £25 admin fee to my account. The amount £175 was refunded. just before Christmas! Unknown to me, the company made the mistake - duplicating the refund into my bank account 2 x £175 payments.

i wasn't aware of this until end of January when i received a letter from them demanding the second amount back from me. i spent the money unknowingly. However i have since been informed of their mistake now they are asking for it back, i now do not have the money, now. Want to know what are my rights. am i liable please can you help answer this dilemma. :think:

Many thanks

I think you will have to pay them back, but do ensure you deduct a suitable administration fee for your time following their negligence. Also I would suggest you offer to pay back in installements over a 12 month period.

Ask them to send you copies of their bank statments showing the two transfers into your account.

McKneff

Where's the dilemma, rights, you have none.

Pay it back, as another poster says, offer them installments.

I cant believe that you even have to ask.

magpiecottage

Without knowing all of your circumstances, I think it is possible that with the various items of expenditure over the Christmas period, it would be possible for somebody to simply spend the money without realising. £175 is not an enormous amount.

In the circumstances, I think you would have grounds to complain that an immediate demand for the entire amount was unreasonable.

On the other hand, I think it is also reasonable that you pay it off by instalments.

Where are you getting car insurance for under £175, though?

Quentin

magpiecottage wrote: »

Where are you getting car insurance for under £175, though?

He never said he had!

Why not read before asking smart questions like this? You bein a professional adviser and all that.

Tiddlywinks

Quentin wrote: »

He never said he had!

Why not read before asking smart questions like this? You bein a professional adviser and all that.

Eris wrote: »

i recently purchased a vehicle insurance policy with a company then canceled the policy within the given period, due to finding a better, cheaper one elsewhere. i was told the company in question would refund the amount minus £25 admin fee to my account.

Umm, yes he did...

dunstonh

Want to know what are my rights.

You have a few but none that are realistic. You would have to prove that you expected that money to be there. It is unlikely you could satisfy anyone that you expected two refunds to be made to you.

The overspending on your part was your error, not theirs. Not perhaps unreasonable for you to lose control of your finances over Christmas but still your responsibility whatever way you look at it.

The company has every right to be repaid the money. However, they should offer a reasonable timescale for you to pay it back over if you cant afford to pay it back in one go. Chances are a small amount of £175 could be paid back over 3 months. I doubt you will bet 12 months. maybe 6 months at a push.

You have absolutely no entitlement to keep the money though.