Help! Car insurance wants money back for total loss made

fatbelly

I believe there's an argument to be had here. I noted this on a commercial solicitor's website

The law in this area is not straightforward and Anthony Gold recently defended a client who faced exactly the situation described above. He received into his personal bank account three separate lump sum payments totalling around £30,000. The payments were received from a large organisation with whom our client had been dealing with at around the same time. He therefore genuinely believed that the payments were meant for him.

The organisation realised their mistake and took steps to recover the money that had been paid to our client, instead of the intended individual with the same name. The case was eventually settled out of court as it was not in the interests of either party to incur the stress or expense of a trial.

The law of restitution applies when one person has been ‘unjustly enriched’ by another, due to a payment mistakenly made to them. Our client in this case had been ‘enriched’, but the question was whether or not that enrichment had been ‘unjust’ and whether he would be legally entitled to keep the money.

Usually, a party who mistakenly pays money to another is entitled to recover it. The fact that a defendant honestly believes they were entitled to receive money is not a valid defence.

However, a valid defence may instead arise if, as a result of the payment made, the defendant has changed their position in good faith and to such an extent that it would be unjust to require them to repay the money. The mere spending of money will not be enough to establish this defence and the innocent party must have incurred expenditure which he or she would not have incurred otherwise. There must be a causative link between the receipt of payment and the defendant’s changed position.

A defendant will be unsuccessful in defending a claim if he or she has spent the money without making reasonable inquiries as to why it was received into their account. Further, if there is an element of bad faith (for example failing to take any action when becoming aware of the mistake) then a defence will also fail.
If you have paid or received money by mistake and require our assistance, please do not hesitate to contact a member of our commercial team.

Greg89

The insurance has ended.

Greg89

I rang today and they said they only accept a period of 12 months to repay.

They said fill out a budget, expenses form, and give three months of bank statements

I pay everything, gas, water, other

Need emergency savings and car maintenance costs which cost £330 last month 

They're asking for £153 pm however I said realistic £70pm

They also stated they could increase the duration needed to pay once they look at the statements

fatbelly

A court would accept, as reasonable, payments over 3-5 years.

After all, in bankruptcy you pay over 36 months, with an IVA 60 months

Given this is their mistake, and the potential argument you have (see above) I think they should accept what you propose, rather than their unrealistic internal policy, and rather than letting a court decide

I also don't think you should send bank statements. Also make sure your figures justify what you intend to pay.

My standard response to 'it's our policy....' is to write a letter asking them to show me this policy in writing.

It never is written and therefore to my mind it's not policy