Refund Received In Error

[princess2010]

I have recently received a refund back into my account in error from a car insurance company - the insurance has been cancelled (no longer required) and they have now noticed the error and are requesting the money is paid back - am I legally obliged to repay the money back even though I no longer have the insurance and technically it was their mistake (the insurance policy is in my ex-husbands name but I made the monthly payments)?

[Xaviour]

its not your money , you knew that so youre effectively stole it. pay it back

[gingejbee]

Yes, you should pay it back. If you don't you may be black-listed, and may never be able to get insurance again, from any company.

[madmaggot]

You could try pleading poverty; say you spent the money without realising (depends on the amount whether this sounds plausible or not) perhaps they will let it go. But ..... you did know you should not have received it so the sensible thing to have done would be to let them know; or at least put it into an interest bearing account until they asked for it back.

[princess2010]

All the documents and correspondence are in my ex hubs name and as we don't live together anymore it has only just been highlighted. I don't check my bank statements regularly so I hadn't noticed anything extra going into my account (I receive my salary and other company expenditure) so I don't see how I stole the money..........

[scotman]

I don't understand your question. If the insurance has been cancelled how is the refund an error?

If it is an error then it is not your money and you will have to pay it back

[sophie_1003]

If they took extra money off you and then you realised a few months later you would still expect them to refund it, you wouldn't be pleased if they said "Sorry, we didn't realise so it's not our fault" so it's the same for you, just because you didn't realise doesn't mean you shouldn't pay it back.

[princess2010]

When the insurance was cancelled for some reason someone at the company refunded all the premiums paid and as they have noticed it was a mistake they have requested it to be paid back to them.

[Xaviour]

everyone agrees pay it back

[Buenchico]

You have a CIVIL liability to refund the money to the insurance company. (i.e. they can make a claim through the civil courts if they don't get their money).

However if you wilfully withhold the money (rather than just asking for time to pay it back because you're skint), you'll be committing a CRIMINAL offence under the Theft Act 1968, which could lead to a fine (or, theoretically at least, a prison sentence) and a criminal record. (i.e. you've not 'stolen' the money yet but you will have done if you deliberately fail to return it).

Chris

[gingejbee]

Whatever the rights or wrongs of this, insurance companies share information about fraudsters, bad customers etc. You are jeopardising any future insurance dealings.

[princess2010]

Thanks Chris - and Xaviour, I never said I wasn't going to pay it back. I basically posted the thread to get a legal understanding. Thanks to those who have taken the time to advise.

[tamborine]

return it with an explanation, as you've outlined here. If they think it's rightfully yours they will reimburse you.

[R1Geezer]

It never ceases to amaze me how often this comes up. Why do people think they can keep money they come by in error? If you left your wallet in my house by mistake can I keep it? If you think about it you must realise you have to repay this.

[Xaviour]

in my opinion these questions come up because people are looking for a legal loophole so they dont need to pay and princes if you knew and the letter said you were legally obliged to pay then why bother posting this unless looking for a way out?

[chazza]

Have a read at this, it really backs up what people are saying on here:

http://news.bbc.co.uk.../magazine/6966683.stm

[joko]

of course they are looking for a way to legally keep it...so what? no-one wants to give someone eles money if they don't have to.

[ELVIS68]

I can`t see how it`s stealing if someone pays money into your account and you don`t wish to give it back, they should be more careful in future

[factor-fiction]

I can't agree with you Elvis if you are making a general point. Aside from the legal aspects it's quite easy when paying money online to slip up and pay them to the wrong person/organisation.

[craft1948]

I was refunded about £150 in error by Tesco Home Shopping..........as soon as I saw the refund on my credit card I rang to tell them about it. After speaking to 3 different departments I was advised (off the record) to keep the money as they had no system in place for taking the money back, or even me sending a cheque.