Sent a cheque in error?

Charley1234

On Friday I received a cheque from a well known insurance company for £5000. The letter stated this was a part payment for my claim from 2006. This isn't a problem for me however, I know very well I didn't make any claims in 2006 and anything I've ever claimed in the past has been paid in full. In short I think the cheque has been sent in error.

I think I'm going to put the money into a high interest account and sit on it for a while to see if aything happens. Does everyone agree this is the correct course of action and has anyone ever had a similar experience? If so what was the outcome?

Any advice welcome.

dmg24

No, the correct course of action is to return the cheque back to them, uncashed.

uktyler

Send it back, its not yours. Cashing it will only get you in trouble.

Personally I would phone them, and tell them if they want it back you want an administration charge of £20, this will cost them less than getting it cancelled, so they might go for it.

Charley1234

Are these replies from a moral point of view or a legal one?
If they've sent me a cheque in my name (albeit in error) what is the worst that can happen if I cash it? In my mind I'll just have to pay it back when they realise! I'm not going to spend it or anything.

ariba10

In my day it was called Moral Fiber.

Charley1234

I'm sure the companies who charge so much interest and offer credit to people who should least use it have much of this so called 'Moral Fibre'

dmg24

Charley1234 wrote: »

I'm sure the companies who charge so much interest and offer credit to people who should least use it have much of this so called 'Moral Fibre'

So you think that you should follow their example?!

Charley1234

When it can earn me a few quid of interest for nothing - maybe.
Lets call it STOOZING using a slightly different method !
Borrow the money, earn interest until they notice, then pay back !

dmg24

Charley1234 wrote: »

When it can earn me a few quid of interest for nothing - maybe.
Lets call it STOOZING using a slightly different method !
Borrow the money, earn interest until they notice, then pay back !

So yes, you are saying that you are as bad as the companies that you have just referred to ...

I don't call it stoozing, I call it dishonesty.

uktyler

Do you have any insurance products with this company now?

They could easily cancel any insurances you have, making it difficult for you to get insurance in the future.
The money is not yours, why do you think you have a right to it, or any interest on it?

geordie_joe

Charley1234 wrote: »

When it can earn me a few quid of interest for nothing - maybe.
Lets call it STOOZING using a slightly different method !
Borrow the money, earn interest until they notice, then pay back !

Yes but the instant you hand it over to the bank teller you are cashing a cheque you know you are not entitled to.

While you have the cheque in your hand all you have is a bit of paper. Once you hand it over in the bank you have the insurance company's money.

They will thank you for returning their bit of paper, but if you take their money, even with the intention of giving it back, they will hammer you.

They will simply see it as you taking their money when you were not entitled to it. They may, probably will, cancel any insurance you have with them and let every other insurance company know what you have done.

The money you will earn from the interest isn't worth the hassle you will get in the future.