Old Job Overpayment

doninio13

Hi, I've recently changed jobs and went from monthly salary to weekly, with a mixup my old job paid me for the month I wasn't working even though I was already working for my new company.
I thought that was a payment for my outstanding holiday and didn't check my wage slip. It turned out they mistakenly paid me as no one informed payroll that I left the company.
I spent the money and with bills and living I can't repay back as already struggling with money.
They keep threatening me that they going to inform a debt collection agency if I don't repay.
What are my options?
I repaid 1/4 of it but really struggling financially to repay the rest?
Is there anything I can do? And can they really proceed with debt collection agency?

zippygeorgeandben

Someone will be here with more informed advice shortly but whether it was a mistake or not, you have spent money which wasn't entitled to you. You cannot benefit from a payroll mishap and cannot use ignorance as an excuse (i.e. holiday).
If it was me, acknowledge the mistake (which you have done by paying 1/4 off) and come up with a plan to pay it off each month. I would be surprised if they rejected this as it will cost them more money to escalate the matter. I would write a letter informing them of payments (say X amount at Y per month). If they reject this, you then have proof that you made a fair and reasonable offer to pay the amount. Don't let them keep threatening you.
Keep us updated.

sourcrates

This applies to anyone who has received money by accident, or that they were not entitled too.
Whoever sent the money, has the same recourse to use whatever methods that are allowed under the law to recover the debt, this includes the courts, and/or a debt collection agency.

The same options are open for everyone to use at there discretion.

[Deleted User]

See this link
https://www.citizensadvice.org.uk/work/leaving-a-job/resigning/if-your-employer-says-you-owe-them-money/

Debt collection can take some time - it isn't always instant action and will be harder if you've already started paying, if you are now weekly paid then like me, start putting a little away each week, what ever you can manage put in a separate pot. As a temp whenever I submit a timesheet I can see at a glance of how much I'll get paid that week for sure which is really funky.

End of April I was contacted about a debt that would frighten anyone silly; we're now in June and they had my reply 3 weeks ago almost - I'm still waiting. Sure I've had £255 added but I really could be paying at my leisure and as you can see I'll have had time to sort myself out.

Worst case - it goes before a judge who will assist with determining a payback based on what's coming in.

Only yesterday I took some items to return and be credited for, to keep going.

EssexHebridean

Did you actually have a month of holiday that you were expecting to be paid for? If not then I'd suggest that maybe it should have flagged up as a bit odd at the least.

I agree that your best course now if you want to avoid them taking the debt-collection agency route is probably to agree a payment schedule with them. You could also pop your up to date SOA in here and we could take a look to see if there are savings to be made that you might have missed which would enable you to pay this off and be free of the worry sooner.

sourcrates

.....Just to add, a debt collector has no more powers to collect this money from you, than I do.
Unless the debt is sold, or the employer takes legal action, threats of a debt collector are pretty much like waves on a pond, they soon vanish.

Exodi

'My Employer Overpaid Me, Do I Have To Give It Back?' starter pack:

☑ I didn't realise I had been grossly overpaid
☑ I don't check my wage slips
☐ It's their fault hence I shouldn't be punished (by paying them back)
☑ I've already spent all of the money
☑ I can not afford to pay it back

4/5, not bad but room for improvement.

I'm guessing if you transferred your mate £100 till payday but found out you'd accidentally transferred him £1000, you'd take it on the chin when he tells you "oh whoops, accidentally spent it all!" or forces you to contact a DCA to try and get your money back.

I also wonder what stance you'd take if the employer had underpaid you a months wages.