The Student Room Group

Being overpaid.

Hi there,

I used to work for a company for 2 months during july and august. I've just recieved a letter informing me that I've been overpaid. As a student, this money has gone into expenditure, as up until now I believed it was money I was owed. It was a rather large amount, which I spent on accom bills.

What is the legal standing of this? I am not interested in morals etc as this isn't a company I need to be in good standing with. From a strictly legal aspect of this what is my position?

I've heard many different opinions but I'm just not sure. Either way I can't afford to pay them back.

What should I do?

Thanks
Ourkid

Scroll to see replies

you'll have to give it back.

Try and arrange something with them

If its a large amoutnt hat was spent on soemthign important I doubt you can claim (or the court will believe) you didnt spot the overpayment.
Reply 2
But If you have spent the money and you honestly believed it was owed to you then they can't always get it back. Search for the case Avon CC V Howlett (1983) which demonstrates it.

However it isn't straight forward as they could argue that because it was a large amount you should have noticed, especially if you had a pay slip.

I dont think you should pay it back, but I could be wrong.
Ive ehardo f this kind of thing happening laods of times, you could possibly find examples if you search for it.
It was their cock-up m8, so if you can't get the money back to them straight away then they'll just have to wait.
Earlier in the year, my family had to repay a large amount of money because of taxes.. we'd been given too much.

It's terrible how this can happen in the first place. It's awfully unfair how a company (or even the govt.) can pay you so much money, and then just suddenly ask for it back. They should get their maths right!

I wouldn't know what to suggest though, sorry. I hope you can find an amicable resolution
How can you think the money was yours? Most people get paid a salary/hourly rate...
You will prob have to pay it back - but in installments if u cannot do it in one lump sum.
Reply 8
Ourkid
Hi there,

I used to work for a company for 2 months during july and august. I've just recieved a letter informing me that I've been overpaid. As a student, this money has gone into expenditure, as up until now I believed it was money I was owed. It was a rather large amount, which I spent on accom bills.

What is the legal standing of this? I am not interested in morals etc as this isn't a company I need to be in good standing with. From a strictly legal aspect of this what is my position?

I've heard many different opinions but I'm just not sure. Either way I can't afford to pay them back.

What should I do?

Thanks
Ourkid


Detrimental reliance militates in your favour by default. However, depending on the proportion of the excess relative to your nominal wage (particularly if the amount consisted of a lump-sum over-payment rather than a recurrent miscalculation spanning the two months), it might not be tenable to contend that you were oblivious to this discrepancy: were you paid double, for instance.
Reply 9
Thanks for the replies guys. Well this overpayment took place on the 25th of sept and was the equivalent to a months pay. I started uni on the 23rd, and my hall fees were due at the end of sept. I checked my balance once the loan had come through, which was before uni, which meant I knew I had enough to pay hall fees. As I had so many other things to think about I didn't check my balance once term had started. Since I didn't work there during/after the overpayment I couldn't possibly have had a pay slip. So tbh I couldn't really know.

I'm not sure what to do as it's money I really don't have.
thanks
Ourkid
Reply 10
What evidence is there that it was an overpayment as opposed to wages you were actually owed?
Reply 11
to be honest, you're probably not going to end off having not paying back, as much as it's their fault etc.

If you plead your case that it was their cock up, that it went on bills, that you don't physically have the money, that it's been stressful for you to find out you have x amount to pay back when you didnt know you'd have to, being former employers and all that, you might be able to come to an agreement with them, either working for them again and having it deducted from wages, or a payment plan of somesort?

As far as I know, they can't just deduct it from your account though, so you have a little time to gather funds?

Any past colleagues you can talk to?
They can not possibly deduct money from your account. However it is not yours, pay it back. had you not been a dim wit and worked out your outgoings are larger then your incoming you would of worked out you had no money for your rent.
Get an overdraught, get a job and get a student loan.... then you should have enough money. If you do not have enough money for rent then things will not get any better. No doubt you are living in private landlord with en-suite rooms charging huge amounts of money which is why had to pay so much.
Get in contact with your company, say you have spent money but will pay then back @ whatever you can afford.
You will have to pay it back

They wont be able to take any money from your bank

They will have to take legal action

If I was you I would just sit it out and ignore them. If its only a few hundred they might not bother.
Reply 14
Profesh
Detrimental reliance militates in your favour by default. However, depending on the proportion of the excess relative to your nominal wage (particularly if the amount consisted of a lump-sum over-payment rather than a recurrent miscalculation spanning the two months), it might not be tenable to contend that you were oblivious to this discrepancy: were you paid double, for instance.


Please, elaborate.
Reply 15
Becky_Sheffield
They can not possibly deduct money from your account. However it is not yours, pay it back. had you not been a dim wit and worked out your outgoings are larger then your incoming you would of worked out you had no money for your rent.
Get an overdraught, get a job and get a student loan.... then you should have enough money. If you do not have enough money for rent then things will not get any better. No doubt you are living in private landlord with en-suite rooms charging huge amounts of money which is why had to pay so much.
Get in contact with your company, say you have spent money but will pay then back @ whatever you can afford.


Like I said I'm not talking morals. I'm talking legalities.

Secondly I'm not a dimwit - any insinuation to the contrary I take offensively and I now kindly ask you to **** off. My finances are not in the best shape right now, but this is a one off situation caused by the odd timing with which everything has happened.

Thirdly, I'm living in the centre of london in a single room no ensuite and in intercollegiate so thanks for the assumption. Hence the large sum of money for the rent.

I've decided to contact them asking for proof of this overpayment, and I'll deal with it accordingly, and if need be I'll contact a lawyer.

Thanks to the helpful posts.
Ourkid

PS. In reply to your post before "how could you think the money was yours? most people are paid hourly"... Well as with everyone it is paid in a lump sum at the end of the month. As I've made clear before I checked the balance before this 'overpayment' was made - literally 1-2days before, and didn't check after this for a long while as I've been busy with uni, by which time I've not realised the discrepancy due to the large influx and outgoing of large amounts of money. I've not recieved a pay slip, and so as far as I'm aware I didn't even know I'd been made this overpayment.
The more you speak the more stupid you sound! "Most" or some people are paid an hourly wage or know how much money they should get at the end of every month, so if you were senisble enough to budget you would of realised you did not have enough money. Most students are in the same boat... having to pay deposit, first instalment of rent even before move in and some times energy bond. Do not think you are hard done by and if you bothered to check when money was paid you would of relaised you had a pay a large lump sum before moving in/soon after and realised the money was not yours.

Just face it, YOU DID NOT CONDUCT ANY PAID EMPLOYMENT TO WARRENT THE OVERPAYMENT, THERFORE THE MONEY IS NOT YOURS, PAY BACK as quick and easy as you spent it. If you went to a shop, paid for a pair of jeans but were charged double, you would be peeded, so you do not have a leg to stand on.
Reply 17
Ok to be honest, I don't think you've quite understood what I'm saying so I'm going to give you the benefit of the doubt in that case for the insults.

Let me clear it up:

1) I know how much I'm meant to be paid.
2) I finished working there at the beginning of september.
3) I was paid the first two months, all fine and dandy.
4) I went to uni on the 23rd of september.
5) I checked my balance before this date
6) My loan had cleared at this point and at this point I had not recieved any overpayment
7) on the 25th I was paid the overpayment sum and I recieved no notification of this via payslip etc.
8) I did NOT check my balance at this point as I knew I had the loan payment and was not expecting any more money from them, and paid my hall fees
9) The loan payment = hall fees as I'm living in central london
10) I did not doubt at one point that the money was mine.
11) being a student in london is expensive. It is difficult not to spend a fair amount of money. If you've ever lived in london you would know.
12) This means that I'm living on whatever money I had earnt up to this point. I've not spent the entire amount of the overpayment, but I've spent about 40% of it.

I merely asked my legal standing on this. I do not feel hard done by, I just wanted to know the legals of whether I have to pay it back - oh, and just incase you understand capitals that much better - THE LEGALS, NOT THE MORALS OF WHETHER I'VE DONE ANY PAID EMPLOYMENT AND DESERVE SUCH OVERPAYMENT OR WHETHER I SHOULD PAY IT BACK. If I LEGALLY have to pay it back - it's fine I'll do it when I have it, but if not then screw it why pay it back?!

No offence but seriously, get off your high horse, read the post carefully, and just get a good hard shag from someone, as it is quite plain that you're in need of one.

Ourkid
Ourkid
No offence but seriously, get off your high horse, read the post carefully, and just get a good hard shag from someone, as it is quite plain that you're in need of one.

Ourkid


LOL!! You're not gonna get any sympathy with that kinda language.
Reply 19
hermaphrodite
LOL!! You're not gonna get any sympathy with that kinda language.


That's just it though - I'm not after sympathy. I was looking for advice from anyone who might've known the legal implications of my situation and perhaps had any advice for me rather than calling me a dimwit or stupid.

She obviously hasn't read the post clearly enough to see that I couldn't have known I was overpaid unless I had checked my balance on a daily basis as soon as I had started university, so instead is making wrong assumptions, and insulting me. Hey you give it - be prepared to take it.

I'm really not here for a lecture on morals or ethics. I don't care that I've been paid for work I've not done, but the fact remains that I have been. Where do I go now? Blindly pay it back despite the possibility I might not have to? I don't think so. I'm going to explore different avenues, and put this up on the off chance someone actually knew...

Ourkid

EDIT: Thanks for the helpful advice from those who understood the post.

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