HBOS screwup

leftoutofpocket

I handed in my resignation for my previous job in March and left in April. Received a letter saying that my final salary would be paid in April and that any pension contributions i had made could be transferred to my new provider.

To cut this short-I checked the account that my wages were paid into from my employer (I have since stopped using this account, after my last wages were paid into this account I transferred the account to a new bank) and found an extra £2900 in there. Realising that this was 3 months worth of pay, 3 months after resigning I contacted the HR department to arrange to pay it back.

After 45 minutes on the phone, I was informed that my overpayment was £3291 and that I needed to pay it back in one installment or they would pass the underpayment across to Dryden's (a debt collectors agency) - obviously I have no qualms about paying back the £2900, my main concern is the £391 extra (which I don't have) and it being sold on.

I still work in the financial services and I'm worried that a third party debt collector mark on my credit file will cause me to lose my job.

Anyone been in a similar situation? And what happened?
Thanks in advance

dancingfairy

I would get them to double check the amount you owe and send you it in writing. Is there no way they will let you pay in installments at all given you hadn't noticed and it was their mistake. Presumable some of the money you've transferred across already was pain in error -and you didn't notice?
Have you got anything you can sell at all to get them the money back (if how much you owe is accurate-given there's been 1 mistake already made on your file).
Can you cut back on food, clothes - well anything for 1 month to get more of the money back to them?
Can you ask for an advance from your new work?
Can you get out a credit card/loan for the 391 extra and buy some stuff on there that you would normally pay cash for so that you can pay the credit card off next month etc? Perhaps a credit union could lend you that sort of money in the timeframe you need without charging the earth?
Good Luck
df

leftoutofpocket

Thanks DF for your reply.

The first error was recieving a letter confirming my resignation date and date of final payment - exact quote - "Your final salary will be calculated and credited to your account on April 23rd" it would appear that this £391 would be from that month.

It seems a shame that in order to pay money back I have to get into debt/sell my things to do so especially as it isn't my error. And they still owe me my pension contributions.

I can only pay in installments if they pass it along to the debt collectors. And I can only pay if off all in one go if I use my (expensive) overdraft to do so.

In hindsight the smart thing to do would have been not to inform them at all. They seemed surprised that I came forward yet I seem to be being punished for it. I'm just starting out in the world and £2900 would have certainly helped...

dancingfairy

- I think you've done the right thing by coming forward though. I agree with you that you shouldn't have to do these things because of what you say is their error but unfortunately it's that or run the risk of having to deal with debt collectors and a mark on your credit file I don't think one default? (is that what it will be?) will have a massive impact on your credit rating - I would have thought that if it's one blip in an otherwise good history it shouldn't be much of a problem. I would have thought HR would be looking for major things like CCJ's , bankruptcy, IVA's etc? After all it's pretty easy to inadvertently overlook something and get a late payment marker or something once or there's some kind of mess up - not something you ideally want with the industry you're in though
Maybe you could phone your HR annoymously if it's going to concern you and see what their reaction is?
df