Salary Overpayment - help! :(

fompas

Hi everyone,

I know this topic has been done to death in the forums over the years, but my case is a little bit different so need some advice...

I worked for a local authority for 3 years December 2011 to December 2014. In August 2014 my hours were halved but that month I still received a full month's salary. I told my manager about this and she said she'd sort it. The following 3 months were the same, with me telling my manager each month that this was happening and her saying it would be sorted. In the meantime I kept what I thought I owed roughly in my bank for when work gave the figure to pay back.

As I said I left in December 2014 and low and behold I received another payment for the month of December, even though I left on the first of the month! I spoke to my manager who told me to keep hold of it because work would want it back along with the rest of the overpayments, which I did.

I heard nothing for all of January 2015, so chased it up again. Heard nothing until March 2015 when I got a letter detailing payment breakdowns and what I owed. There was a lot of overtime missing so I went back to them with proof on email and they said they would recalculate it. Over the next 8 months I contacted them several times because I still had about £3k sat in my bank account waiting for them. Heard nothing. Skip to last week (2 1/2 years after I left!) and I get a letter saying they've done their recalculations now and I owe them £3.4k!!

The problem is I spent it towards the back of last year because I needed a new car and my boiler fixing... I figured it had been 2 years since I left and I had made so many attempts to pay it back and they didn't seem bothered, I kept getting told I'd get a call back or they were just waiting on some information. So I kept it for nearly 2 years but then times got hard and it was there, so I spent it.

What do I do? I'm currently in a debt management plan also so I have no spare money a month to pay them, I'm terrified they're going to take me to court!!

Any advice would be amazing. Thank you.

punk84

Unfortunately you knew they over paid the money. You knew the money wasn't yours. regardless of the reasons why you spent it, it wasn't yours to spend. I suggest you call yourn employer and ask to set up a payment plan

Geoff1963

I know it's tough ; but the way to feel less aggrieved, is to recognise that if they hadn't overpaid you, you'd have had to borrow it, at high interest, affecting your credit rating. When it was sitting in your bank account, your bank would have felt you were a better risk.

I kept what I thought I owed roughly in my bank

They can't expect you to exactly calculate the overpayment ( if they can't ) so you didn't know an exact figure.

Another idea, which might work depending on your circumstances ; is for them to employ you part-time, with your salary having already been paid.

National_Debtline

Hi fompas,


I am afraid they have 6 years to chase you for this money, so although you held onto it for a long time, they are not 'too late' to take action to recover this money.


As you are no longer able to pay this off in full you will need to negotiate instalments. If there is no money spare outside of the DMP you will need to try and add them in. But be careful, this can sometimes cause a DMP to be cancelled. You don't mention who your DMP is with or if they are a free provider. If they aren't then switching to a free DMP and including this debt may help you anyway.


County Court action is always a possibility with defaulted/ overdue non priority debts. Try not to panic. It is mainly done through the post and although it would result in a CCJ on your credit file, your credit file is already likely to be damaged because of the DMP.


Laura
@natdebtline

fompas

Thanks for the help, my DMP is with Stepchange. I've spoken to them and they are happy to include them in the plan. I've sent this information to my old employer today so will wait to hear back and see if they accept the proposal.

I've also tried to borrow more on my mortgage to clear all my debts but I think due to my DMP and the state of my credit file they said no. Hopefully they will accept the plan and then in a few years (I'm almost 4 years into my DMP) the defaults will disappear and I can remortgage properly.

National_Debtline

The defaults will come off 6 years from the date of default and, providing none of the debts get a CCJ, your credit file will start to improve once they come off. Be aware that re-mortgage applications are likely to record a 'search' on your file. These will only show for 12months but several of them can cause damage to your overall rating as well.


It is good that your DMP is with Step Change (as they are free) and that they are happy to include this debt. That should help because creditors know they are getting a fair proportioned offer. Good luck,


Laura
@natdebtline

EssexHebridean

Don't go down the route of borrowing more on the mortgage to cover currently unsecured debt unless there is absolutely NO other option. At the moment the main thing at risk is your credit history - if you follow that path you're putting your home at risk also.