Been overpaid and now they want it back...

...in one lump sum!!!

My friend's wife was repeatedly over paid, then had the money reclaimed ,then overpaid again etc. this went on for months and after numerous phone calls etc, she was informed that the problem had been sorted.
On the last occassion, she phoned to query the error and was informed that the money was actually hers and she was being paid correctly, and her HR dept even have a recorded phone call of this discussion. So she put the money towards a desperately needed home repair which has now been carried out.

Yesterday, she was informed that she had been overpaid for months and they now want it back. where does she stand in this situation? She constantly informed them of errors and was constantly told it had been sorted, and she even has recorded proof of this fact. Now, she's being asked to repay a lump sum which she doesn't have as she needed to fix the house quite urgently. it's not like she'd kept the money knowing it was wrongly paid, she had checked many times.
Can they make he repay it in a lump sum?

Any help will be passed on gratefully. PM me if neccessary.

Thanks in advance

Paul

Comments

  • dmg24
    dmg24 Posts: 33,925 Forumite
    She has to pay the money back, despite the misinformation. However, she may repay in instalments.
    Gone ... or have I?
  • barloo69
    barloo69 Posts: 372 Forumite
    mmmm sorry DMG I disagree.

    Had your friend NOT made ANY measures to make her HR dept aware of these overpayments she was receiving, then at the point of her being aware of the overpayments and deciding to keep the money, in law she would've been guilty of THEFT as she dishonestly intended to permanently deprive the other person of it (ie her work).

    However, she DID make her employers aware of this, so legally she is not guilty of any criminality.

    Furthermore, I would suggest that she obtains a copy of the phone recording because at the point the HR staff member advises that she is being paid correctly this further strengthens any potential legal case that may now materialize. (these recordings have a habit of accidentally being wiped or going walkies btw)

    Your friend will now need to consider whether keeping the overpayments is worth the added animosity at work. Obviously they wont be able to directly sack her but her employment could easily be made more uncomfortable. (but then if she can evidence this practice, she has wrongful dismissal / tribunal as well, but thats another story !!)

    It may be worth, to go seek a solicitor anyway, with a copy of the recording and instruct him to write a letter to your employers HR. For the sake of £50 this would certainly show you are serious and let them know you prepared to fight it to the courts.

    Ultimately the decision is your friends and is upon your friends conscience. DMG is correct that they cant demand the entire sum back from her and they most likely would deduct future salary at an agreed sum if she choose to give it back.

    Hope this helps.
    If you see a penny, pick it up, all day long you'll have good luck !!!!!! :D
  • dunstonh
    dunstonh Posts: 116,031
    Name Dropper First Anniversary Combo Breaker First Post
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    However, she DID make her employers aware of this, so legally she is not guilty of any criminality.

    dmg24 never made any comment on criminality.

    dmg made the correct comment that the money should be paid back as it wasnt hers and was also correct in stating that the payment in affordable instalments should be available given the circumstances.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Hodgy8403
    Hodgy8403 Posts: 27 Forumite
    Thanks for the replies. My friends wife is only 18 months from retirement, and as she owes £3000 (ish), she is going to suggest they reduce her pay by £167 per month but has been told this isn't acceptable. She will be sticking to her guns though, as they want it in one lump still.

    Thanks again:money:
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