car tax incorrectly refunded.

My daughter bought her first car a few month ago, she is 17, and learning to drive. (may 2015). The previous owner sent of the paperwork and she sent off her part and when the new log book arrived, stumped up the £100 + for six month "road tax". About a month later she received a refund for the tax in the post. She was perplexed as we had been led to believe it should have gone to the previous owner. We rang the owner who said, it's £48, put it towards your driving lesson. So, daughter did.
However, now she has received an demand from the DVLA stating the money was refunded in error and she must return the money to the DVLA within 14 days or they may take action to recover the money and will result in further expense to her. Where do you think she stands, yes she has had the money, yes she knew she may not have been entitled, but the DVLA have been using this system for over a year now and I feel that if they get it wrong then its tough luck to them. They have never refunded the original owner, we rang to check.
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Comments

  • if she got a refund from tax she paid then technically she wasn't taxed, so yes she has to pay it, the refund to previous owner is a different issue
  • just a matter of interest, check here and see if they car is showing as taxed,
    https://www.vehicleenquiry.service.gov.uk/


    if not its entirely possible she could end up with a fine
  • it is taxed.

    she taxed it in July, I did double check when she received letter.

    letter clearly refers to refund which was sent to her in May, and states was refunded in error.
  • She bought the car in May, and immediately SORNed it as she was till 16.

    The refund arrived in May
    She then taxed and insured it in July.
    Letter asking for refund refers to money sent in May and states "sent to you on 13.05.2015 in error".
  • agrinnall
    agrinnall Posts: 23,344 Forumite
    10,000 Posts Combo Breaker
    The simple answer is to pay it back now it's been asked for, what the previous owner said at the time is irrelevant.
  • dannyrst
    dannyrst Posts: 1,519 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    It isn't your money. It was given to you in error. Why do you feel you now have a right to keep this money?
  • Rambosmum
    Rambosmum Posts: 2,447 Forumite
    Part of the Furniture 1,000 Posts
    They have 6 years to reclaim money paid in error/ refunded in error/ not claimed for service rendered etc. Pay it back.
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    DVLA sent her the money in error.
    She knew it was in error, but contacted the previous keeper instead of DVLA.
    The previous keeper told her to keep it - but it wasn't down to him at that point.
    DVLA have now realised their error, and want to correct it.
    She needs to send the money back. DVLA will then send it to the previous keeper, who might keep to his previous word and return it to her.

    Alternatively, you can try and get the previous keeper to get DVLA to withdraw the request but - frankly - it'll be easier to just go with it.
  • Either pay it back and move on where you are no worse off or wait for the court action to start and put up a winning defence on why you should keep the money refunded in error.

    If you fail to refund the money, I would worry that they may cut short the tax.
    Censorship Reigns Supreme in Troll City...

  • Try keeping the money. They'll issue proceedings against your daughter which will increase costs. If she doesn't pay the judgment within 30 days, she'll get a CCJ on her record for 6 years.
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