Overpayment & legality of paying back?

marbar2k

Hi everyone I'm after a bit of advice.

I had a part time job and left at the start of the year. Sometime in feb 2010 they changed the paycycle and gave us an advance so for that month our wage stayed the same (I don't really understand it)

I left in jan 2011 and my last wage was £0 because it said reclaim this advance. In early march out the blue I had a letter to say I owe them £45 to repay this advance. This is because my last wage couldn't cover the whole amount.

I just ignored the first letter. Today I have had another saying if they don't receive contact or payment in 7 days they will pass to debt recovery and small claims.

Where do I stand on this matter? I can't really afford £45 but i could pay also I'm going for a mortgage so I don't want and bad credit strikes.

Non of the letters have been sent recorded so they have no way to know I have had them.

What should I do? Please help??????

paddedjohn

do you actually owe the money? if so it would be beneficial to you in the long run to call them and explain that you cant pay yet but will as soon as circumstances change. its no good running away from it as it will bite you in years to come.

sofaspud1234

Good credit rating versus bad credit rating..your choice really! If you owe it payup.

Uncertain

marbar2k wrote: »

Non of the letters have been sent recorded so they have no way to know I have had them.

What should I do? Please help??????

The normal legal presumption (in the UK) is that mail IS delivered. So, under all normal circumstances if they have a certificate of posting a court will assume you got them. They don't need to send them recorded.

Advice?

Simple, if you owe the money then pay. If you don't then write back at once and properly dispute the matter.

marbar2k

Many thanks for your advice and help.

Am I quite within my rights to ask them to explain the charges to myself?
Also is it within my rights to agree to pay in instalments with no negative effect to me? What would you class as reasonable installments?

Thanks once again.

marbar2k

Ps should I send my reply recorded?

Uncertain

marbar2k wrote: »

Many thanks for your advice and help.

Am I quite within my rights to ask them to explain the charges to myself?
Also is it within my rights to agree to pay in instalments with no negative effect to me? What would you class as reasonable installments?

Thanks once again.

Ask them to explain - Yes

Instalments - You can offer but they could in theory say no. However, if they took you to court and won you would only be ordered to pay at a rate the court thinks you can afford. However, this could include costs so you would end up paying more.

It is unlikely they would refuse a SENSIBLE instalment offer.

Recorded - It would allow you to check online that they have got it but, as stated earlier, for legal purposes a free certificate of posting is enough.

GavB79

Debt recovery and small claims is a lot of effort for £45 once you factor in the time taken to put the case together. I should imagine this is just a part of their credit control process they won't follow through, unless they REALLY don't like you.
Having said that, if you owe them the money pay it back.

DVardysShadow

marbar2k wrote: »

• Am I quite within my rights to ask them to explain the charges to myself?
• Also is it within my rights to agree to pay in instalments with no negative effect to me?
• What would you class as reasonable installments?

• Totally within your rights to ask. And if the explanation does not stand up, then ask again
• You cannot avoid the negative effects of paying back, so lets ignore that question and deal with the next
• Reasonable instalments are dependent upon your circumstances.

marbar2k wrote: »

Ps should I send my reply recorded?

Already answered, if you accept that sauce for the goose is sauce for the gander

Uncertain wrote: »

The normal legal presumption (in the UK) is that mail IS delivered. So, under all normal circumstances if they have a certificate of posting a court will assume you got them. They don't need to send them recorded.

Marbar2k, the thing I cannot understand is that you hope to have a mortgage, but paying back £45 is beyond your means???

pinksleepybear

I don't see how this could affect your credit rating in any way. You haven't made a credit agreement with them and I'm assuming that they are not a financial instituation which is regulated to offer credit. As far as I can see, there is no possible means of them having an affect on your credit rating.

You should definitely request a detailed explanation and breakdown of the calculations, make sure you understand them and if you agree that the calcs are right then contact them to arrange the repayment (in installments if that's what you can afford).

None of this was your mistake. You didn't request an extra payment, you didn't request a loan from them.

To me, it sounds like it will cost them more to recoup the money than to write off the mistake.

DVardysShadow

pinksleepybear wrote: »

As far as I can see, there is no possible means of them having an affect on your credit rating.

Only getting a judgement in the small claims court for £45 and then OP not settling it within 28 or 30 days..