Employer's paid salary into overdrawn account

Onyourcase

I'm trying hard to get to grips with my finances. I've used this forum and National Debtline to draw up a budget and have nearly reached agreement with all creditors. On advice I set up a new bank account a couple of months ago, got my salary paid in there and have been paying all bills and creditors through it on a pro rata basis.:)
My employer changed it's salary system this month and has paid this months salary into my old account:eek:
The old bank account was over it's overdraft limit, so now I can't get my salary out.
What should I do? My new account won't have enough in it to cover my mortgage and all the pro rata payments I've set up!

molerat

Have they paid previous payments into the new account ? If so and their systems have screwed up get them to recall the payment and in the mean time pay you by cheque or other means.

Onyourcase

Yes, Feb and March went into New account properly.
How do I stand legally?

somethingcorporate

This is likely to get messy as the company can not just withdraw the money back out of your bank account.

What do you mean where do you stand legally?

The company has an obligation to pay you in line with your contract, the fact that your finances are set up to deal with your situation is likely of little concern of your employers. There is absolutely no way on earth you could get them to pay you twice because the first one went in to the wrong account.

How would you see the situation being resolved?

Onyourcase

somethingcorporate wrote: »

This is likely to get messy as the company can not just withdraw the money back out of your bank account.

What do you mean where do you stand legally?

The company has an obligation to pay you in line with your contract, the fact that your finances are set up to deal with your situation is likely of little concern of your employers. There is absolutely no way on earth you could get them to pay you twice because the first one went in to the wrong account.

How would you see the situation being resolved?

Employer said it was their mistake and I wouldn't lose out financially. I am losing out.

Onyourcase

What can I do to pay bills?

catfish50

Onyourcase wrote: »

Employer said it was their mistake and I wouldn't lose out financially. I am losing out.

From your point of view you feel like you're losing out, but since the salary has presumably been applied against your overdraft, you haven't lost out financially because your overdraft has been reduced.

I know that doesn't help, but I suspect that's the way it would be looked at if it came to court. Can you get an overdraft on your new account to pay the bills for this month?

McKneff

I agree with everyong else, your company cannot recall the payment so it's gone.

Do yu have a cc you could use, borrow from your company to be paid back over a few months.

Theres always a positive side, you owe the bank less money now than you did

Onyourcase

I disagree with the forums agruments so far. I think what need to be done is 1) Employer pays me into my correct account to correct their mistake and 2)Asks me to recover as much as possible from old account to mitigate their costs

gordikin

Borrow from employer, family or friends if you can. Sell the crap everyone has through small ads. or ebay.

gordikin

Onyourcase wrote: »

I disagree with the forums agruments so far. I think what need to be done is 1) Employer pays me into my correct account to correct their mistake and 2)Asks me to recover as much as possible from old account to mitigate their costs

3) Employer requests you return money they paid you in order that they can pay it into the correct account.