Overpaid by NHS - affecting credit?

GeorgeAgdgdgwngo

Hi All

My wife was overpaid by the NHS in her last pay packet before she left a few months ago, something that was not noticed until we were informed by them. They are seeking to reclaim it in one go, something which we'd like to avoid. If we can negotiate a payment plan my wife is worried it will affect her credit score? I'm not sure how as it's not a loan/bill/financial institution-backed thing but I can't say for certain and my Googling is coming up with nothing.

So, if we can repay her overpayment by the NHS over a few months and not all at once will this affect her credit in any way?

Thanks in advance

BoGoF

This has nothing to do with 'credit'. It isn't credit but shouldyour wife not pay and they take legal action a CCJ could arise but that's a long way away.

MattMattMattUK

As above it is not a credit, though if you refused to repay it in a time frame they deem reasonable then they could take you to court to obtain a CCJ, then enforce that, but they are unlikely to do that for an amount so small that you did not notice.

How much was she overpaid by and how long are you proposing repaying it over?

GeorgeAgdgdgwngo

Thank you. I missed including the word "credit score" but I don't think it makes any difference. I frequently don't find the right vocab for many things.

No chance we're not paying it back, it's their legal right to reclaim, but it's a big enough hit to make life uncomfortable for us for a short time. I'm hoping a polite email to them will allow for a payment plan negotiation.

Thanks again.

MattMattMattUK

GeorgeAgdgdgwngo said:

Thank you. I missed including the word "credit score" but I don't think it makes any difference. I frequently don't find the right vocab for many things.

Credit scores are made up numbers, they do not matter, more importantly this is not a debt that would be reported because it is not borrowing.

GeorgeAgdgdgwngo said:

No chance we're not paying it back, it's their legal right to reclaim, but it's a big enough hit to make life uncomfortable for us for a short time. I'm hoping a polite email to them will allow for a payment plan negotiation.

It will potentially come down to what is reasonable and if it is enough for them to take enforcement action, they are unlikely to do anything over £250, they almost certainly would over £2,500. 

Grumpy_chap

GeorgeAgdgdgwngo said:

Hi All

My wife was overpaid by the NHS in her last pay packet before she left a few months ago, something that was not noticed until we were informed by them. They are seeking to reclaim it in one go, something which we'd like to avoid. If we can negotiate a payment plan my wife is worried it will affect her credit score? I'm not sure how as it's not a loan/bill/financial institution-backed thing but I can't say for certain and my Googling is coming up with nothing.

So, if we can repay her overpayment by the NHS over a few months and not all at once will this affect her credit in any way?

Thanks in advance

GeorgeAgdgdgwngo said:

Thank you. I missed including the word "credit score" but I don't think it makes any difference. I frequently don't find the right vocab for many things.

No chance we're not paying it back, it's their legal right to reclaim, but it's a big enough hit to make life uncomfortable for us for a short time. I'm hoping a polite email to them will allow for a payment plan negotiation.

Thanks again.

The difficulty with this type of overpayment is the size of the overpayment.

It can be confusing to understand final month's payslip if it includes for unused holiday or an extra part-month worked after the normal pay date, or other elements that make it different to being a normal month.
However, I would suggest in most cases, the individual should be able to spot if the final month's payslip is not roughly where it should be.  If you know the month is an average of 4 weeks and the final pay is for 7 weeks, if the actual pay is more than double a normal month the individual should reasonably notice the same.

This is where the issue about size of the overpayment comes in.

If the overpayment is large enough that repayment will cause financial discomfort and a payment plan is requested, then the counter argument from the employer would well be that the individual should have noticed and alerted the employer.

If the overpayment was small enough that the individual might reasonably have not noticed, then then amount is small and the need for a repayment plan is moot.

I often think it can be useful to ask the opposing question.  If the final pay had been short by the same amount, would the individual have noticed and alerted the employer?

imreadyforbed

I cant comment on the credit score part of your question , but i was over paid by less than £100 per month for aprox 3/4 years , i did not notice as depending on hours worked you may get sat/sun enhancement so it would fluctuate , when this was flagged up they were nothing but money grabbers , took 0 accountability and made me complete a income/outgoing assessment and was made to feel bad for extras such as soft play and a birthday cake i had paid for , honestly no support , felt like id stolen the money and was having to justify what i was spending my money on . i sat there crying whilst 2 admin ladies literally hard faced bitches couldnt care a less ( i was actually 8 months pregnant too ) , I realised this was not going to get better and i shouldnt have to disclose or justify my outgoings to anyone !!!!!! honestly was awful , so i got a loan and paid them back in full , sorry to be a debbie downer but please dont expect them to take any accountability nor a payment plan , the nhs is on its knees financially but good luck XXXXX 

GeorgeAgdgdgwngo

Thanks for all advice and concern. It's mid 3 figures. As @Grumpy_chap suggested there was some unused holiday and we thought the final pay was over but we underestimated and didn't put aside enough. We alerted at the time and heard nothing for nearly 6 weeks then we got a letter with the actual total. We're currently in a position where a few hundred is not something we can just easily draw on so, as previously described, we're hoping a nice email asking them to agree to us paying the rest over a few months is worth the time it takes to write and send it. If they say yes then great, if they say no then we find the money somehow. 

Flugelhorn

the usual thing in the NHS is to give you the same time to pay it back as the overpayment lasted ie if it is overpayment for 6 months then they will expect so much a month for 6 months, if it is overpayment for one month then they will probably expect it back in one go https://faq.nhsbsa.nhs.uk/knowledgebase/article/KA-26662

GeorgeAgdgdgwngo

Thank Flugelhorn, great info that I was not aware of (and as disappointing as it is illuminating ) Perhaps we're hoping for something that can't happen. Still, if we don't ask it won't ever happen so worth a punt. Thanks again for all advice.

Unwell2023

Fingers crossed for a repayment plan to be allowed.

I know someone who got sick 2 weeks inside their new job at a GP practice and payroll wasn’t and would never have been stopped in time - the surgery chased for the overpayment and would have offered a repayment plan. No matter whose mistake the overpayment was still owed.

Her family said it was just one of those things, typically ironic as normally it was her out of pocket (past employers getting away not paying out holiday pay) as they handed over some of her savings to pay it off in full.
The matter was put to bed in hours of opening a letter as it isn’t additional pressure they really want to lug about honestly.