Salary Overpayment advice

CarJack

unlikelyheroine wrote: »

The only sensible advice in this thread. Is it just me or has the original poster received some REALLY questionable advice in response to his problem? Estoppel is less than straightforward and I struggle to see how it would apply where the former employer has acted quite quickly to point out that money is owed to them. They have not behaved as if a debt was forgiven such that the OP has acted in reliance on this and suffered a detriment (this is closer to the definiton of estoppel than "you have spent money that wasn't yours but it's all gone and it's not fair to ask you for it back").

If the OP has been overpaid, it is well-established that employers can recoup overpayments from current and former employees (especially within a couple of months and where reasonable repayments are agreed). There is nothing wrong with trying to get a discount on it or something - you don't ask, you don't get, after all - but people seem to be advising the OP to risk court action because it may not be financially viable for the former employers to pursue the claim based on their own calculations. OP, that seems to me a high-risk strategy over £600 which I appreciate is a lot of money but not in the realm of unreasonable and unconscionable for you to pay back at your own pace should you have been overpaid it. Whether you like it or not, it is your responsibility to check payments made to you and if an employer notices an error in your favour then they can ask you for the money the same way a bank can when it accidentally credits your account. The money is not yours and has to go back.

I tend to agree with you, a £600 CCJ would screw up my credit rating, I am totally aware they have the right to the money back, regardless if it was their mistake. I have tried to research Estoppel and to be honest I am not legally qualified to understand its application, but guess it is/was worth investigating. I have spoke to my employer today contesting the supposed overpayment as they should have paid me my notice, of which the money was for. I am going to await the outcome of that, for the time being the Debt Collection Agency said they will place the case on hold. Assuming I fail the dispute with my ex employer then I was hoping or at least probing on MSE to find the best possible outcome for me, for example a discount on the salary overpayment. Again I dont want this over my neck and would rather get this out of the way asap in the most favourable of terms like anyone would.

Thank you

unlikelyheroine

CarJack, I hope it works out. I think you have the right idea making the point that the money is not due because you were due notice etc - whilst I don't have all the details, this sounds a logical argument to make, at a quick glance.

Estoppel is indeed an equitable principle that it is possible to argue in court. However, its requirements are very specific. It does not apply where you have been simply asked for money that was overpaid. It requires the person to whom the money is owed to behave in a particular way, which you rely on to your detriment. For example if you had received a letter to say that they would not pursue the debt, you spent the money on something, then it went to a collection agency, there might be more of an argument. In any case you are right to seriously consider whether over £600 - not nothing by any means but not a very vast sum - it is worth risking a CCJ and all its consequences.

I could be wrong but I think "estoppel" is something the freemen on the land tend to put in their letters, and I don't think it will get you very far. Just my personal view.

Good luck.