redundancy overpayment

[issy10]

Hi, if any one could give me any idvice any ideas that would be great i cant tell you how upset i am regarding this and dont no were to turn to next... I was made redundant last year whilst on maternity leave, before evan recieving a lettter to tell me i was going to recieve a payment, my bank account showed a large payment, i immediatly phoned my previous employer(payroll) to ask if it was from them as i wasnt waiting on any other large payment. They told me YES it was from them end of phone call. 10 minutes later after trying to work out the amount paid i phoned back to ask them if the payment was correct and that the full amount was mine and that i could use all of it, again the answer was yes, the amount was still bothering me so for a THIRD time abount 5 minutes after the last call(i have kept a record of all calls made) i call again, i asked payroll if all taxes and NI was taken off correctly...again i was told the sum was correct end of story...i wish I have just recieved a letter at the weekend telling me they have over paid me by £1000 and that if i do not pay by the end of the month they will take me to court! I recieved the money nearly a year ago and have paid bills and debts and had to pay for my partner to purchase a new car as our old one had broken down and wed just had a new baby and he uses his car for his work so needed this urgently, i have no way of paying this bill and have no regular income as iv just gone self employed last month i literaly have £100 in my bank account after putting the very little i had into my business. What more could i have done than phone them 3 times to query this???? Also how can they only contact me now??? Any advice would be kindly appreciated xx thank you xx

[BankFodder]

Search this forum for posts including the word "estoppel"

 

That will explain your position

[issy10]

Hi There, thanks for that it is something iv been reading up on and something i could look into, the concerns i have now is that it proberbly will go to court as i have no way of paying this back and i have been told i proberbly wont be able to get legal aid as my partner works full time, so i will have to face my old employer on my own. This is why iv turned to the internet to gain as much knowledge as i can. Once again thanks for the info xx

[Sidewinder]

Hi Issy.

 

First of all, this is extremely unlikely to go to Court, and will be even less so if you follow the wealth of advice that is out there.

 

Bankfodder is absolutely correct - you need to look at and understand the principle of Estoppel by representation, as it would seem that IF there has been a genuine overpayment, then you have more than ample grounds to claim a 'change of positiion' (as this is the more accepted term to use in defending against recovery of an overpayment). This will be an extremely viable defence to any possible claim, and if put to them in strict terms now, may even make them realise that Court proceedings would be an extremely risky proposition.

 

To argue Estoppel, your case would rely primarily on certain criteria. Firstly, this was not your mistake. Secondly, you were led to believe (or in your case told categorically on several occasions) that the money was rightfully yours, and lastly that as a consequence of their error, and believing in good faith that you were entitled to do so, you have spent the money.

 

Your correct course of action now, is to write (note - keep EVERYTHING in writing from now on) and advise that further to their recent demand to repay an alleged overpayment, that you do not agree that the money is owed. Outline the facts in that on receipt of the money, you confirmed on three separate occasions that you were entitled to the money (list the times, dates and who you spoke to), that you believed in good faith, and subject to their confirmation, that this was a payment connected with your redundancy. State categorically that you deny any liability to repay this money, which was paid a considerable period of time ago, and having been told by them that it was rightfully yours, that it no longer exists, and that any attempt to recover the money by legal action will be vigorously defended.

 

A half-savvy employer will hopefully at this point realise that they are on a hiding to nothing. If you genuinely agree that the money should be repaid (and personally from the account you have given, I would not), then it is up to you to propose a repayment schedule. Even if it were to go to Court, and they were to win then you cannot be ordered to repay at a rate you cannot afford anyway.

[issy10]

Thank you sidewinder, what a complete and thorough answer, you have given me food for thought! Its so scary taking on such a big company its so nice that people like you are only a click away! I will write the letter this week and keep you posted! You'v definatly given me hope were as before i had none thank you!

[issy10]

Hi evryone sorry its taken so long to get intouch but it was quite a long process itself, but the main points are, i went to a soliciter who gave me free legal advice, we spoke about estoppel and together wrote out a letter with the evidence and sent it off, they sed they wud stop proceedings whilst they reviewed this and we havnt heard from them since! We take this as wev won the battle but not the war as it would be almost impossible for them to take me to court as they have not replyed to offical papers but they are also allowed up to 6 years to claim the money they say was over payed, i say TAKE A HIKE theyl neva get a penny off me! one point for the little people!!