Salary Overpayment advice

CarJack

Dear all,

I was hoping for some advice.

Back in April, I resigned from my job, essentially it was not the best company to work for and they were trying to force me out, I was suspended for the most trivial matters. I had two options 1: stay and fight for job I did not want to be in or 2: resign and leave with my reference intact, I chose the latter option of which I am glad I did, I am much happier for this.

However I received a letter asking for money of £618.11, of which I dont have as I am on Job Seekers Allowance, they are initially asking for around £23 per month to pay it back, obviously with just JSA and no savings I am not in a position to pay this back. I am yet to go through an income/expenditure with them. I am aware that they are entitled to get this money back, regardless if it was their cockup, but I was wondering is there anyway I can negotiate a reduction in full settlement? If I can get some money of my brother. It would be great to hear peoples thought and ideas on this.

I am aware they can take me to court and of course the last thing I want is for them to ruin my credit file.

Regards

Denning.

When did you first become aware of the overpayment?

CarJack

Hi there,

I resigned on the 4th April, I received a letter requesting payment back on the 18th June.

Denning.

CarJack wrote: »

Hi there,

I resigned on the 4th April, I received a letter requesting payment back on the 18th June.

Why didn't you repay on the 19th of June?

ifonlyitwaseasier

write back asking for a full breakdown of the overpayment.

if it is correct offer £5 a month as thats all you can afford

CarJack

Well by the time they asked for the money, I already spent it, I thought the payslips were audited correctly by HR. My case was sent to a debt collection agency on day 1, I asked them for sometime to see if I could borrow some money off my brother they agreed and are starting chase me up for the money again. At the time my brother didnt have money to spare, but he does now.

Denning.

CarJack wrote: »

Well by the time they asked for the money, I already spent it, I thought the payslips were audited correctly by HR. My case was sent to a debt collection agency on day 1, I asked them for sometime to see if I could borrow some money off my brother they agreed and are starting chase me up for the money again. At the time my brother didnt have money to spare, but he does now.

Then you can petition the court to estop their claim. You spent the money in good faith believing it to be yours. It would be inequitable for them to demand the money back.

Either send them a letter stating this and that you will challenge any legal proceedings against you based on this, or speak to CAB who should be able to draft a letter with you.

CarJack

Denning. wrote: »

Then you can petition the court to estop their claim. You spent the money in good faith believing it to be yours. It would be inequitable for them to demand the money back.

Either send them a letter stating this and that you will challenge any legal proceedings against you based on this, or speak to CAB who should be able to draft a letter with you.

Thank you Denning!

Im going to give the CAB a phone call now, Ill mention what you said, hopefully the CAB advisor will be quite clued up! Do you really think this is a viable option? As I didnt think it mattered if I spent the money in good faith or not.

Thanks

Denning.

CarJack wrote: »

Thank you Denning!

Im going to give the CAB a phone call now, Ill mention what you said, hopefully the CAB advisor will be quite clued up! Do you really think this is a viable option? As I didnt think it mattered if I spent the money in good faith or not.

Thanks

Yes, it would be unfair for an employer to make a mistake and put the employee in distress through no reasonable fault of the employee.

Estoppel isn't clear cut, in theory you should be able to prevail yourself of it, but it would be down to the judge. However, merely raising the point could very well knock the employer onto the back foot and make pursuit 'not worth it'.

Depends who you speak to at CAB, if the operator doesn't know ask them if they could pose the question to one of their solicitors and get back to you.


There is nothing stopping you entering payment plan discussions after if they refuse to accept it and you really don't want to risk it at court.

CarJack

Denning. wrote: »

Yes, it would be unfair for an employer to make a mistake and put the employee in distress through no reasonable fault of the employee.

Estoppel isn't clear cut, in theory you should be able to prevail yourself of it, but it would be down to the judge. However, merely raising the point could very well knock the employer onto the back foot and make pursuit 'not worth it'.

Depends who you speak to at CAB, if the operator doesn't know ask them if they could pose the question to one of their solicitors and get back to you.


There is nothing stopping you entering payment plan discussions after if they refuse to accept it and you really don't want to risk it at court.

Ok thats interesting, "Estoppel". I will pose this to the CAB. I guess my worry is that I wouldnt want to risk anything in court as I value my credit file, particularly as I may be obtaining a mortgage in the not too distant future and a £600 odd CCJ would put off most lenders with a good interest rate.

I was wondering though, how many people are actually successful throwing this argument against the employer? I am just questioning things here as no one can really predict a court outcome. Perhaps I could use this argument to negotiate a reduced final settlement figure? These are just questions in my head. But for for I am going to ring CAB and see what they and their solicitors say, and send the letter to the Debt Collections Agency.

Thank you,.

CarJack

Perhaps the 'Estoppel letter' could be worded in such a way, asking for confirmation that they will write off the demand for payment, however I kind of think that maybe a bit unrealistic.