Overpayment by umbrella company - now they want refund 2 years later

windog

Hi all
I worked as a contractor in 2005 and used an umbrella company to take care of all my VAT/LTD. company details etc as I knew very little about that side of things.

When my contract ended I was paid my final 'salary' twice over 3 different months.

Because the umbrella company were so totally unorganised and inefficient there was nothing unusual about getting paid 3 months after I submitted an invoice - so I didn't notice that both final amounts were the same and therefore duplicates.

Now 2 years later the umbrella company has sent a letter demanding the money back – they say they have reviewed their accounts and realised their mistake and they apologise for this inconvenience :eek:

I’m employed but in no financial position to re-pay the amount – anyone know where I stand on this?:mad:

timbellina

Hi windog;

Are you quite, quite sure you were overpaid? If they're as inefficient as all that, what's the odds that they've accused you (however nicely) of receiving money they actually paid to someone else.

Be nice to them. Tell them you'll look into it. Point out that as their records weren't the best ever, you can quite understand that this could have happened, but you personally didn't notice it - indeed, you paid them to take care that this sort of thing didn't happen. Say that you might have to incurr accountant's fees, and are they prepared to meet them? and when they say no, then how about if it is shown that they were in the wrong? Put aside a monthly amount that you can afford, just in case. Never respond to a letter in less than 14 days. Never say you won't pay; but make them work hard. In the meantime, look into the entirety of your dealings with them and ensure that the double payments wasn't just them catching up on something they missed earlier.

To give you a small example - I was contacted by a branch of a UK optician about a month ago. I'd forgotten to pay my bill last time I was in; would I contact Mrs So-and-so, or send them a cheque?

I contacted Mrs. So-and-so; said I thought I'd paid, but as it was now six months after the event, and I was pretty sure I'd paid cash; I doubted I still had the receipt. She was dubious - so, quite honestly, was I. But guess what? A week or so later I emptied out a desk drawer and sitting at the bottom was the receipt; a till receipt for a cash payment of my eye test.

The moral to this story? Don't believe anyone who sends you a bill just because you think they're probably right ;-)

Tim

camper

I believe they can ask for any overpayments from the past six years, with interest. Luckily, they did not just take from your bank account!!

The above is good advice. Never admit you owe anything. Note, however, that legally, they are entitled to claim their money, after all. the other way round, wouldn't you?