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Question

money paid into account in error been spent

Submitted: 561 days and 14 hours ago.
Category: Legal
Value: $18
Status: CLOSED
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Optional Information

Optional Information:
inverness, United Kingdom

Posted by David Coleman 561 days and 13 hours ago.

Info Request

Dear Madam,

So I can clarify, did you receive money in error and then spend it and now the bank is claiming that you must pay the money back?

561 days and 13 hours ago.

Reply

my employer has accidentally paid there vat returns into my account which became mixed up with my own money ,i have returned as much as i could but has left me owing them a substanstial ammount

Posted by David Coleman 561 days and 11 hours ago.

Answer

Dear Madam,

Generally, the original owner of the money will retain the right to retrieve the funds which they owe to the Government. You may be able to negoitate a system where you pay the ammount of money back slowly over time rather than taking a large a debt on board. Also, the things that an assessor will be likely to take into account int his type of situation would be to what degree you were aware of the error and what steps you took to correct the error if you were aware that you had been paid money which was not your own. Things that would indicate this would include the length of time you had to rectify or discover the error, whether it was obvious or insginificant and if your level of sophisication with financial matters would warrant that you made a closer examination. The fact that you have already returned as much as possible i an excellent step in the right direction. I think it should be quite easy for you to negoitate a plan with your employer to pay the money back slowly over time rather than having to pay it back in a lump sum. I hope that this is helpful.

Regards,

XXXXX XXXXXXX

561 days and 11 hours ago.

Reply

thank you for your answer i have made an arrangement with my employers they want me to pay interest on the ammount owing at a lower rate than a bank loan do you think this is justified considering the mistske was due to them initially

Accepted Answer

Dear Madam,

Although I am not aware of any legal principle which would give you a determination wither way, I think you would be justified in refusing to pay interest. There are general obligations on employers to ensure that payments to employees are recorded and administered accurately and the employer does have to take some responsiblity for ensuring their payment system is administered accurately. ALthough on this topic appears to be quite vague and I cannot find a spefic instance of this occuring, from the point of view of natural justice, you shouldnt have to accept a charge of interest in this case, I believe.

Regrads,

XXXXX XXXXXXX

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Expert: David Coleman
Pos. Feedback: 100.0 %
Accepts: 
Answered: 5/10/2008

Lawyer

BEc(SocSci). LLB (Usyd) - 5 years of Work Experience

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