Overpaid but spent the money?

number41 · 28 Sep 2006 at 11:43

My mate was overpaid in his last month before leaving the company. He spent the extra money and thought nothing more of it. Now almost a year later the company has written to him and asked for it back!!

What are the obligations legally (never mind morally as the company is anything but moral so I have no problem helping him out in this situation if I can despite him being stupid!).

Kell_ee001 · 28 Sep 2006 at 11:44

It's not his and he has to pay it back, both morally and legally I think

Hostile_18 · 28 Sep 2006 at 11:47

Yeah he did the right thing taking a chance that they wouldn't notice IMO but now they have asked for it back there isn't much he can do. Maybe arrange with the company to take a little out of his wages each month?

Puppetmaster · 28 Sep 2006 at 11:51

Hostile17 said:
Yeah he did the right thing taking a chance that they wouldn't notice IMO but now they have asked for it back there isn't much he can do. Maybe arrange with the company to take a little out of his wages each month?

Thats confusing, the person who spent the money, no longer works for the company if i read it right, so how can they take it out of his wages from another company?

How long ago did he spend it, because it wasnt technically his money to spend. While i would have spent it eventually, its not always the best option as now they are asking for it back.

Visage · 28 Sep 2006 at 11:52

number41 said:
My mate was overpaid in his last month before leaving the company. He spent the extra money and thought nothing more of it. Now almost a year later the company has written to him and asked for it back!!

What are the obligations legally (never mind morally as the company is anything but moral so I have no problem helping him out in this situation if I can despite him being stupid!).

Its called Theft.

KaHn · 28 Sep 2006 at 11:53

tell him to offer to pay it back at £1 a week, iirc they can not refuse.

KaHn

nin9abadga · 28 Sep 2006 at 11:53

i had a similar situation with TSB and they were right buttholes about it. they just took the cash straight out of my account and then tried to take me to court as i couldn't pay the fees they were charging me. anyway, he'll have to pay it back, i suggest he should write back and make them a repayment offer and come to an agreement that way.

nin9a

taliesyn · 28 Sep 2006 at 11:58

KaHn said:
tell him to offer to pay it back at £1 a week, iirc they can not refuse.

KaHn

Yes they can

He may be able to negotiate some sort of repayment plan with them, but they are under no obligation to accept it.

singist · 28 Sep 2006 at 11:59

As stated; he "should" pay it back .................. but as he probably has no intention of going back to work for them, it becomes a bit like not paying a credit card bill i.e. to get the moneyback, they have to go to court and prove their case and get a judgement, which is not cost effective (I'm told).

Make 'em an offer of an affordable sum and pay it off ...... is my advice.

NickXX · 28 Sep 2006 at 11:59

KaHn said:
tell him to offer to pay it back at £1 a week, iirc they can not refuse.

KaHn

taliesyn · 28 Sep 2006 at 12:01

Actually, thinking about it, they can probably charge him interest too.

PeteLucky7 · 28 Sep 2006 at 12:02

Out of interest, how much money are we talking about?

leaskovski · 28 Sep 2006 at 12:04

he has to pay it back. Similar thing happened to a mate of mine! Man that screwed him over big style as it was the equivilant of a yearly salary :eek:

233 · 28 Sep 2006 at 12:07

not worth the hassle just pay it back

my old employer took me to court over an overpaymenf or £42 pounds

number41 · 28 Sep 2006 at 12:09

It was British Gas and around a grand or so. I have worked for them in the past and after the training just walked out saying they were corrupt and gave the worst custmer service ever!! All they were interested in was sales.

My mate however stuck with it for 6 months before packing it in and coming to the same conclusion!! He owes a months wages as after he quit they paid him a month later.

I would like to see nothing more than for them to be screwed over as the company is just so morally wrong itself from what I learnt being there for only a few weeks!!

taliesyn · 28 Sep 2006 at 12:11

number41 said:
It was British Gas and around a grand or so. I have worked for them in the past and after the training just walked out saying they were corrupt and gave the worst custmer service ever!! All they were interested in was sales.

My mate however stuck with it for 6 months before packing it in and coming to the same conclusion!! He owes a months wages as after he quit they paid him a month later.

I would like to see nothing more than for them to be screwed over as the company is just so morally wrong itself from what I learnt being there for only a few weeks!!

They will screw him royally for that amount. Get him to pay it back.

PeteLucky7 · 28 Sep 2006 at 12:16

Ask to pay it back at £20 a week. He won't notice that amount and he'll pay it back in a year.

If it's any consolation British Gas will still make a loss cos he'll have had tax and NI taken off that which he won't have to pay back.

KaHn · 28 Sep 2006 at 12:20

taliesyn said:
Yes they can

He may be able to negotiate some sort of repayment plan with them, but they are under no obligation to accept it.

I thought if you made resonable (documented) defence at why you can only pay that ammount they can not take you to court.

/waits for legal bums to come in

KaHn

number41 · 28 Sep 2006 at 17:02

Anyone have any personal experience with it? I've been talking to people at work during lunch and one of them believes if you aren't told after 6 weeks of them making the mistake they cant get it back or something :confused:

richard smith · 28 Sep 2006 at 17:20

I was over paid two months in a row and yes, they are entitled to ask for it back as I was. They did do it over two months and I'd not spent the cash through a moment of sensible thinking.