Employer asked bank to take overpayment from account

[abonae]

Hi

I left my last employer (a local authority) In April 2007. I've received a letter from my bank saying that they intend to reverse a BACS overpayment made to me when I left. I assume the council are claiming a salary overpayment, but I have not had any communication from them and I'm not at all sure I was actually overpaid.

I've contacted my bank, and they now won't take the money as originally planned - at least at the moment. What's going on? Can the council (legally) act in such a high-handed and unilateral manner?

Cheers

Abonae

[Bookworm]

Have you tried contacting them to find out?

[GuidoT]

You cannot reverse a BACS payment that was made 8 or so months ago, without your consent.

There is a very short time window (like on the same day) after making a BACS transfer whereby you can reverse it without your consent.

[Ell-enn]

You need to telephone the payroll department of the employer to ask what this is all about. Tell them you need any information from them in writing detailing why they think you owe this money - do not accept any explanation over the telephone, you must have it in writing. They simply cannot demand money from you without writing to you first to explain the situation and give you time to pay (or not, if you disagree).

You should also, as soon as possible, hand deliver (or send by recorded delivery) a letter to your bank advising them that they do not have your authority to refund this money.

When you have contacted the employer, please post back to let us know what they say.

Kind Regards

Ell-enn

[abonae]

Thanks to both - I've told my bank (by phone) that I don't agree to the reverse. I'll follow this up in writing and I'll contact my former employer.

Cheers

Abonae

[advisee]

When you write to the former employer, do NOT acknowledge that you may owe this money - even if you believe their explanation.

One thing that employers are increasingly doing, is asking employees to sign a direct debit mandate authorising the employer to debit their bank account for any overpayment of wages - this is signed at the start of employment and kept on file for when it may be needed - did you do this?

In your letter to the council, put everything in their court. Tell them to write to you with details of the alleged overpayment, and you will consider it.

Depending what this turns out to be, my advice will more than likely be to ignore them, and see whether they are stupid enough to take you to court.