Clerical error

Cashola

Hey peeps,

Not really sure where to post this, as there isn't a section that totally fits, but this is about the closest..

I've received a letter from an Investor Services company, which lists a range of payments into one of my saving accounts, dating back to May 2007, up to Apr 2015 (2 payments per year). All of the payments were quite small (under £50), with the exception of the most recent one (circa £500). So until very recently, I actually believed these payments were connected to an old pension thing from when I worked for a provident association, and to be perfectly honest, I didn't even really think about it until this recent big payment showed on my statement.

Anyhow, the company are saying all of the payments were clerical errors and I need to pay back the full amount (by cheque) within 2 weeks of the letter date.

Whilst in theory, I now believe they could be right (and I've not spent it), I am wondering what the law is around this sort of thing? I mean, it's their mistake for 8 years.. Barring moral compass, do I have to pay this all back to them, IF they are legit?

EDIT: also, I presume my bank have supplied my personal address and contact details to this company - is that not in breach of data protection?

TIA!

dunstonh

You have no legal entitlement to money paid to you in error unless you had reasonable expectation of that amount. From what you have said, there is no reasonable expectation so you are required to return the money to them.

That said, if you are unable to pay them what is owed in one go, they have to offer you a reasonable repayment period to repay the money.

EDIT: also, I presume my bank have supplied my personal address and contact details to this company - is that not in breach of data protection?

What evidence do you have to support that?
Its more likely you had a relationship with this company at some point and they had your details already or had sufficient details to allow a tracing company to locate you.

Cashola

Thanks Dunstonh, appreciate your clear reply.

RE the comment about my bank/my details. I've 100% had no dealings with this company in the past. Also I don't have proof my bank passed my details (this is an assumption) but I've assumed the only way this company could track me to my home address would be via the account number they were paying money into (in error) - which is of course a saving account I hold with my bank.

-taff

Were these payments supposed to be going to someone else?

Insider101

Cashola wrote: »

Hey peeps,

Not really sure where to post this, as there isn't a section that totally fits, but this is about the closest..

I've received a letter from an Investor Services company, which lists a range of payments into one of my saving accounts, dating back to May 2007, up to Apr 2015 (2 payments per year). All of the payments were quite small (under £50), with the exception of the most recent one (circa £500). So until very recently, I actually believed these payments were connected to an old pension thing from when I worked for a provident association, and to be perfectly honest, I didn't even really think about it until this recent big payment showed on my statement.

Anyhow, the company are saying all of the payments were clerical errors and I need to pay back the full amount (by cheque) within 2 weeks of the letter date.

Whilst in theory, I now believe they could be right (and I've not spent it), I am wondering what the law is around this sort of thing? I mean, it's their mistake for 8 years.. Barring moral compass, do I have to pay this all back to them, IF they are legit?

EDIT: also, I presume my bank have supplied my personal address and contact details to this company - is that not in breach of data protection?

TIA!

I'm not sure it really is that close a fit but anyway that's somewhat besides the point so here goes.

Firstly, I would try and find out from them who they are, why they came to be paying money into your account, what your association is with them, who gave them your details etc... You need to know where you stand before you can do anything and before we can advise with any degree of certainty. I had a similar issue with my bank a year or two ago but spotted it immediately and called up to say I wasn't sure the funds were mine. In that instance, the payer contacted my bank shortly after to say that they had made an error. However, the bank contacted me and asked if they could reclaim the funds, they did not give my details out (the amount involved was only about £100 as well, which is trivial in the scheme of things).

Are you a pensioner or of pension age (i.e. over 55 at minimum?) because if you're not then saying you thought it was from a pension is going to sound a bit flimsy, especially since you have to make a positive decision to take pension benefits before you receive payment from them.

If it is their error then as DunstonH said you need to pay the money back (I believe any payments made over 6 years ago COULD be timebarred under statute of limitations however, am not a lawyer and could not swear to that - as you said this is a matter for your own moral compass).

I would contact them and offer to pay back the money (or six years' worth anyway) based solely on the amounts paid, no interest as it was their error not yours. If you can't pay it within two weeks (though I note you have said you have not spent the money which implies you probably can) then advise them of this and that you will be happy to agree a reasonable payment schedule. Theoretically they could take you to court for it, however, they almost certainly won't as it is unlikely that any judge would have any sympathy with them given that it was their mistake in the first place and you have made reasonable endeavours to resolve it.