Court action over overpayment

bawheed

Hi all,

I could do with some advice. Before I left my previous employment I was overpayed a months wages.
As the story goes I have spent the money now ( I know it was not mine to spend) and I have received a letter from them them saying they want the money payed back or the matter will go to court for them to legally retrieve the funds.
I have agreed to pay back £500 per month which is the maximum I can afford however they have wrote back and said they want £815 a month or the matter will go to court to retrieve the amount and will have judicial interest added.
My question is I am as well to let the matter go to court for them to determine the amount i will pay back. As I have stated not disputing the fact I have to pay it back it's just I can't afford the amount they are asking for.

Quentin

If you do let them go to court you will have to pay all the costs and you will get a CCJ registered against you.

Is it worth this to allow the court decide how much you should pay on the drip?

bawheed

Thanks Quentin,
I don't want it to go to court at all but I can't afford the amount they are asking for.

dseventy

bawheed wrote: »

Thanks Quentin,
I don't want it to go to court at all but I can't afford the amount they are asking for.

Complete a statement of affairs. Google it or look at the forums to find one.

It lists your income and outgoings.

Once this is vetted (by the board or CAB, ie you can't say you pay £700 a month for magazine subs and hence cant pay more) send it to the employer to explain your situation.

Explain that you will are willing to pay £500 per month and will share your statement of affairs with any judge should it come to court.

Assuming your SOF is reasonable, no lawyer will touch it and agree to your amount offered. If its off and unreasonable, then it would be persued.

D70

dancingfairy

How much exactly do you owe? I would draw up a realistic budget and proposal and send it to them as suggested. Do you have their bank account details to make a payment?
They may not accept it and may proceed to court but by this time you may have another months worth of payments saved up.
df

McKneff

How much are we talking about, could you ask family for a loan or get one from the bank, it would save a lot of hassle for you.

Apart from the court hassle, if you get a ccj, your credit will be wrecked for 6 years.

DVardysShadow

McKneff wrote: »

Apart from the court hassle, if you get a ccj, your credit will be wrecked for 6 years.

Only if you do not comply with the order.

I think if OP starts by sending £500, and holds to their plan for repayment, it will be rather difficult to get a ccj against OP.

Where these things go wrong is when a debtor admits a debt and makes an offer which is refused and the debtor then does not send any money at all.

[Deleted User]

Did your old employer have an overpayments clause in your contract or staff handbook? I knew of a women who was paid something she wasn't due whilst on Maternity leave.... After 9 months she had been overpaid £4000! She offered £10 per week and because the employer didn't have any overpayments clause in the contract the judge said they had to accept it! Nice interest free loan for her!

marisa

How much are some people on that a month overpayment ends up having to be repaid at £500/month *_* My entire month wage after tax isn't much more than that ;_;
Anyway I digress....
When I was overpaid once they insisted I pay it all back in one lump sum or go to court, I was so scared at the time I borrowed it from my mum to pay back, check your contract if there is nothing about overpayment and you have the time and willing to go to court you may even end up being able to keep it.

dizzyrascal

DVardysShadow wrote: »

Only if you do not comply with the order.

I think if OP starts by sending £500, and holds to their plan for repayment, it will be rather difficult to get a ccj against OP.

Where these things go wrong is when a debtor admits a debt and makes an offer which is refused and the debtor then does not send any money at all.

Agree with this.
A reasonable offer to repay has been made and as long as the payments are kept up I don't see that going to Court would help. If the old company set a date for a hearing at a County Court I can't see a judge being very happy with them if they are receiving regular funds.
If this did happen OP, make sure you turn up and get a chance to explain your offer or you may get a judgement by default. However, they would be silly to pursue a claim if you have already made a sensible offer to repay.

Uncertain

marisa wrote: »

How much are some people on that a month overpayment ends up having to be repaid at £500/month *_* My entire month wage after tax isn't much more than that ;_;

Based on some of your posts on here I can well believe that!

More seriously though this is becoming a game of who blinks first. The OP agrees he owes the money and has offered what most people would regard as a reasonable repayment rate.

The employer doesn't have to accept instalments at all and could insist on immediate repayment.

If the OP can't or won't do that then the employer's only options are to negotiate or go to court. A court would order repayment at a rate IT assesses the OP can afford. This may be more or less than he is paying at the moment. Some costs would also be added to the total.

In the real world I very much doubt the employer will actually sue providing the current repayment rate is kept up - but who knows.